Multi-Board Contract Guide
The Multi-Board Residential Real Estate Contract 7.0 is the contract we most commonly work with in Chicago. Below, we’ve outlined each of the numbered sections in the contract.
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 should be noted here.
3. Fixtures & Personal Property: This defines what is included in the sale. Anything attached to the unit (which is considered a fixture) stays unless otherwise noted (kitchen appliances, washer/dryer, lighting, etc.). If the buyer is asking for any additional furniture items not noted, they will write those on line 29.
4. Purchase Price & Payment: The price the buyer will pay for the property.
5. Closing: The date the buyer will to close on the property.
6. Possession: This section states the buyer will get keys & full possession of the property on closing day, unless a leaseback is noted in Section 35.
7. Financing: This section notes if the buyer will finance their purchase or pay in cash.
8. Statutory Disclosures: The buyer will initial these boxes if they have received the property disclosures.
9. Prorations: This section specifies how the taxes & assessments will be prorated. Often, this is marked as TBD and determined during attorney review.
10. 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. This can be extended if more time is needed.
11. Waiver of Professional Inspections: This is checked if the buyer is waiving their inspection. More often, we see buyers purchasing a contract “as-is” (specified in Section 36) –in an as-is contract, the buyer will still conduct an inspection but won’t ask for any inspection repairs.
12. Professional Inspections & Inspection Notices: This section allows the buyer to conduct an inspection & defines the repair requests that can/should be made.
13. Homeowner Insurance: If the buyer is unable to obtain homeowner’s insurance for the home, they can cancel the contract.
14. Flood Insurance: The buyer 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.
15. Condo/Common Interest Associations: The content in this section will override any prior communications about association matters.
16. The Deed: You must provide the deed at closing, which transfers title to the home to the buyer. This will be coordinated by your attorney.
17. 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.
18. Title: You must provide the title commitment, which shows all liens & encumbrances, which must be cleared by or at closing. This will be coordinated by your attorney.
19. Plat of Survey: If the property is a single-family home, you must provide a plat of survey prior to closing. This will be coordinated by your attorney.
20. 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), the buyer can terminate the contract or proceed with the contract and receive any insurance proceeds.
21. Condition of Real Estate & Inspection: You must leave the property “broom clean,” meaning all garbage & possessions should be removed. At the final walkthrough, the buyer will confirm everything is functioning as it was during inspection.
22. Seller Representations: You represent that you don’t know anything about the property that would impact title or tax obligations.
23. Real Estate Tax Escrow: This explains how taxes will be prorated if any improvements are made. This paragraph rarely comes into effect, as escrows are typical for new construction homes, but not standard resale.
24. Business Days/Hours: This defines what a “business day” is.
25. Electronic or Digital Signatures: This allows us to use Docusign.
26. Direction to Escrowee: This outlines how earnest money will be returned if needed.
27. Notice: This defines what serves as “notice.”
28. Performance: Time is of the essence!
Optional Paragraphs
These paragraphs are only part of the contract if they are initialed by both parties.
29. Confirmation of Dual Agency: This section will be completed if M&Co. is representing the buyer & the seller.
30. Sale of Buyer’s Real Estate: This section is used if the buyer’s purchase of the property is contingent on the sale of another property. You can learn more about home sale contingencies here.
31. Cancellation of Prior Real Estate Contract: This section is used if the buyer is submitting their offer as a back-up offer. If the seller’s original contract falls through, the back-up offer becomes valid.
32. Home Warranty: If the home contains aging appliances & mechanicals, the buyer may ask for a home warranty up front. This costs ~$500+ & lasts for 1-2 years.
33. Well or Sanitary Systems: If the property has a well or sanitary system, the buyer can request you to pay for testing.
34. Wood Destroying Infestation: The buyer can request you to pay for a termite inspection. This is not relevant for most of the city & suburbs.
35. Possession After Closing: The buyer can opt to let you maintain possession of your home after closing, if you need extra time to move out or find your next home. This section defines the date the buyers will take possession, as well as the fee for renting the property. You can learn more about leasebacks here.
36. “As Is” Condition: The buyer can offer to purchase the property “as-is,” meaning they will still conduct the inspection, but they will not ask for any credits or fixes.
37. Specify Party Approval: This section allows for an additional 3rd party to approve the contract.
38. Attachments: If the buyer attaches any extra riders to the contract (such as an appraisal gap rider or an escalation clause), it would be noted here.
39. Miscellaneous Provisions: If you & the buyer have any separate agreements regarding the purchase, they will check these boxes.
Page 13 of the contract contains contact info for all parties.
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