Legal Question in Real Estate Law in Illinois
How do ''contract sales'' work in Illinois?
What does it mean, in Illinois, to enter into a contract sale? I am the accountant for a not-for-profit organization that has closed on a contract sale to purchase a building. Who owns the building for purposes of liability to pay real estate tax? Who owns the building for purposes of insuring the structure? Can the building be considered an asset of the organization, from an accounting point of view? What's the difference between legal title and equitable title?
2 Answers from Attorneys
Re: How do ''contract sales'' work in Illinois?
The things that you ask about are completely dependent upon the terms and conditions contained in the contract itself. You didn't mention where you were, or where your client was located. We practice in the Chicago Metropolitan Area (principally Du Page and Kane counties). I would strongly suggest that your client consult with an attorney "ASAP". If you are local, you can call me. If not, call the local bar association and get a referral. Frankly, this is a matter that should not wait.
Re: How do ''contract sales'' work in Illinois?
The answers to your questions all depend upon the fact and circumstancesw of your organization's particular contract for sale. The parties frequently allocate the rights and duties you have asked about.
The base question you ask at the end of your email, who is the owner for federal tax purposes, depends upon who bears the benefits and burdens of ownership.
There is no one answer. I can help you review the documents and determine the answers to the questions you ask. If you decide to retain an attorney, please give me a call to set up an appointment.
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