Understanding the Multi-Board Contract

Multi-Board 8.0

1. The Parties: Names of the buyer & seller.

2. The Real Estate: The address of the property to be purchased. If the offer includes parking or storage, it will be noted here. 

3. Purchase Price & Payment: The purchase price, as well as any closing credits and the earnest money deposits. 

4. Seller Contribution to Buyer Brokerage Compensation: The compensation (if any) paid by the seller to M&Co. at closing.

5. Closing: The date you will close on the property.

6. Possession: This section states you will get keys & full possession of the property on closing day, unless a leaseback is noted in Paragraph 35.

7. Fixtures & Personal Property: This defines what is included in the sale. Anything attached to the unit (also known as a fixture) stays unless otherwise noted (kitchen appliances, washer/dryer, lighting, etc.). 

1. If you are asking for any additional items, those will be noted on line 62. 

2. If any items will not be transferred, those will be noted on line 64. 

3. If any items are not in operating condition, those will be noted on line 66. 

8. Financing: This section notes how you will pay for the property.

1. (a) Financing Contingency: You will purchase the home with a loan. If you are not able to obtain your loan, you are protected by your financing contingency and can cancel the contract with a refund of your earnest money. 

2. (b) Cash Transaction with No Financing: You will purchase the home with cash. You are not permitted to obtain a loan. Canceling the contract after your other contingencies are cleared could result in loss of earnest money. 

3. (c) Cash Transaction, Financing Allowed: You will purchase the home with cash, with the option to obtain a loan. If you are not able to obtain your loan, you are not protected by a financing contingency, and canceling the contract after your other contingencies are cleared could result in loss of earnest money.

9. Homeowner Insurance: If you are unable to obtain homeowner’s insurance for the property, you can cancel the contract.

10. Flood Insurance: You can cancel the purchase if the property is located in a special flood hazard area. This is not relevant for most of the city & suburbs.

11. Statutory Disclosures: You will initial these boxes if you have received the property disclosures.

12. Prorations: This section specifies how the taxes & assessments will be prorated. Often, this is marked as TBD and determined during attorney review.

13. Attorney Review: This section says that the buyer & seller have 5 business days to have an attorney propose modifications to the contract & open up negotiations. You can request an extension from the seller if more time is needed.

14. As-Is Condition: If initialed, you accept the state of the property as-is. The seller does not make any representations as to the condition of the home, and if a system fails at any time, including after closing, you do not have recourse against the seller. 

15. Inspections

1. (a) Waiver of Professional Inspections: You will not conduct an inspection of the property. 

2. (b) Right to Inspection with Requests: You will conduct an inspection, and have the opportunity to request credits or repairs. This section defines the repair requests that can be made.

3. (c) Right to Inspection with No Requests: You will conduct an inspection, but you will not ask for any credits or repairs.

16. Additional Inspections

1. (a) Wood Destroying Insect Inspection: You can request the seller to pay for a termite inspection. This is not relevant for most of the city & suburbs.

2. (b) Well or Sanitary System Inspection: If the property has a well or sanitary system, you can request the seller to pay for testing.

17. Condominium/Common Interest Associations: The content in this section will override any prior communications about association matters. 

18. The Deed: The seller must provide the deed at closing, which transfers title to the property to you.

19. Municipal Ordinance Transfer Tax & Governmental Compliance: This notes that the property may be subject to “transfer taxes” which are a part of total closing costs.

20. Title: The seller must provide the title commitment, which shows all liens & encumbrances, which must be cleared by or at closing.

21. Plat of Survey: If the property is a single-family home, the seller must provide a plat of survey prior to closing.

22. Damage to Real Estate or Condemnation Prior to Closing: If the property is destroyed while it is under contract (due to fire or another emergency), you can terminate the contract or proceed with the contract and receive any insurance proceeds.

23. Condition of Real Estate & Inspection: The seller must leave the property in “broom clean” condition, meaning all possessions & garbage should be removed. At the final walkthrough, you will confirm everything is functioning as it was during inspection.

24. Seller Representations: The seller represents that they don’t know anything about the property that would impact title or tax obligations.

25. Business Days/Hours: This defines what a “business day” is. 

26. Electronic or Digital Signatures: This allows us to use e-signature tools like Docusign.

27. Direction to Escrowee: This outlines how earnest money will be returned if needed.

28. Notice: This defines what serves as “notice.”

29. Performance: Time is of the essence!

30. Confirmation of Dual Agency: This section will be completed if M&Co. is representing the buyer & the seller.

31. Sale of Buyer’s Real Estate: This section is used if your purchase of the property is contingent on the sale of another property. You can learn more about home sale contingencies here.

32. Cancellation of Prior Real Estate Contract: This section is used if you are submitting your offer as a back-up offer. If the seller’s original contract falls through, the back-up offer becomes valid.

33. Home Warranty: If the home contains aging appliances & mechanicals, you can ask for the sellers to purchase a home warranty. This typically costs ~$750+ & lasts for 1-2 years.

34. Alternative Energy: This section outlines alternative energy (solar panel or other) considerations. 

35. Possession After Closing: You can opt to let the seller maintain possession of the property after closing, if they need extra time to move out or find their next home. This section defines the date you will take possession, as well as the fee for renting the property back from you. You can learn more about leasebacks here.

36. Specified Party Approval: This section allows for an additional 3rd party to approve the contract.

37. Contract Addendums: If your agent attaches any extra riders to the contract (such as an appraisal gap rider or an escalation clause), it will be noted here. 

38. Miscellaneous Provisions: If you & the seller have any separate agreements regarding the purchase, they will check these boxes.

Page 14 of the contract contains contact information for all parties.