Legal Question in Real Estate Law in Illinois

I don�t feel that I really have an active news tip but it maybe. My situation is that I am trying to purchase a house for my daughter and we have worked it down to the point where it�s time for me to sign the contract. Now first of all it is an electronic contract so one cannot make corrections on it but rather you must sign it as is or not be allowed to go forward with the purchase. Note also that the seller of the house is �A Bank� so it is pretty big which only adds to my frustration.

My problem: Upon attempting to read and sign this contract I read the following:

(b) The closing shall take place on a date (�Settlement Date�) on or before 10/24/2016 (�Expiration Date�), unless extended in writing signed by the Seller and the Purchaser or extended by the Seller under the terms of the Agreement. The closing shall be held at a place so designated and approved by the Seller unless otherwise required by applicable law. The Purchaser has the right to make an independent selection of their own attorney, settlement company, escrow company, title company and/or title insurance company in connection with the closing. The date the closing takes place shall be referred to as the Settlement Date for purposes of the Agreement. If the closing does not occur by the Expiration Date, or in any extension, the Agreement is automatically terminated and the Seller may retain any earnest money deposit as liquidated damages. (note that I highlighted this)

Please note the highlighted last sentence because that is my problem. This sentence is said by Fannie May to mean that �If the closing does not occur by the Expiration Date, or in any extension, (due to the fault of the Buyer) the Agreement is automatically terminated and the Seller may retain any earnest money deposit as liquidated damages.�

I�ve tried to insist that that is not what is says and that I may lose my $8,000 earnest money through no fault of my own as the buyer.

Would you please tell me if I am correct on this and can you offer any further advice on this? Thank you in advance.


Asked on 9/28/16, 5:31 pm

3 Answers from Attorneys
Thomas Moens Moens Law Offices, Chartered

You need to hire a real estate attorney to represent you. In order to advise you, an attorney would need to review the entire contract, not just a portion of it.

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Answered on 9/29/16, 6:09 am
Henry Repay Law Offices of Henry Repay

The provision is standard to many of the contract when dealing with bank-owned properties. It is difficult to advise you outside of the context of the entire agreement. There are more risks in these deals than in others, but as a purchaser it is always advised to have an experienced closing attorney working in the area where the property is located. Missed deadlines or seemingly insignificant details may make the difference in whether the transaction is cancelled and earnest money forfeited.

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Answered on 9/29/16, 6:39 am
Stephen Messutta

I agree w/ Mssrs. Moens & Repay: While these provisions are pretty standard in foreclosure/bank sale deals, no responsible attorney will provide a firm opinion without seeing the entire agreement. Which should have, among other things, an attorney approval provision, and if you're not sure if it does, time again for an attorney's involvement. Why are you trying to handle this as a DIY with, among other things, apparently $8K potentially at stake?

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Answered on 9/29/16, 8:28 am


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