With references to the Illinois Multi-Board Residential Real Estate Contract 8.0 where applicable.
Before You List
Choosing a Listing Agent
Interview multiple agents before committing. Look at their track record in your specific neighborhood, their marketing plan, and how they communicate. Ask about their pricing strategy and what comparable sales support it. Your listing agreement is a binding contract. Understand the commission structure, the listing term, and what happens if you want to cancel.
Understanding Brokerage Compensation
Under the Multi-Board 8.0 contract (Paragraph 4), your contribution to the buyer's brokerage compensation is negotiated as part of each offer. You may agree to pay a percentage of the purchase price or a flat dollar amount toward the buyer's agent, or you may decline to pay anything. Be aware that your decision here can affect how many buyers are willing to make offers, since it impacts their total out-of-pocket costs.
Pricing Your Home
Overpricing is one of the most common seller mistakes. Homes that sit on the market too long develop a stigma, and eventual price reductions often net less than pricing correctly from the start. Work with your agent to review recent comparable sales, pending sales, and current competition. Be honest about your home's condition relative to the competition.
Preparing the Property
First impressions matter. At a minimum, declutter, deep clean, and address any obvious maintenance issues. Consider a pre-listing inspection. This lets you discover problems before buyers do and gives you the option to fix them on your own terms and timeline rather than under the pressure of a contract deadline. Pay attention to curb appeal, fresh paint in high-traffic areas, and making sure all fixtures and systems are in working order.
Under the 8.0 contract (Paragraph 7, lines 65–66), you warrant that all fixtures, systems, and included personal property are in operating condition at possession, unless you've specifically disclosed otherwise. Knowing what's broken before you list helps you price accurately and avoid surprises later.
Disclosures and Legal Requirements
Illinois Residential Real Property Disclosure
Illinois law requires sellers of residential property to complete a disclosure form covering the condition of the property, including structural issues, water intrusion, environmental hazards, code violations, boundary disputes, and more. Be thorough and honest. Vague or incomplete answers can expose you to liability after closing. The 8.0 contract (Paragraph 11) confirms whether the buyer has received this disclosure prior to signing.
Lead-Based Paint Disclosure
If your home was built before 1978, federal law requires you to provide the buyer with a lead-based paint disclosure and the EPA pamphlet “Protect Your Family From Lead In Your Home.” This is not optional. The 8.0 contract (Paragraph 11) tracks whether these documents have been provided.
Radon Disclosure
Illinois also requires sellers to provide radon-related disclosures, including the IEMA “Radon Testing Guidelines for Real Estate Transactions” and a Disclosure of Information on Radon Hazards. If you've had radon testing done, you should disclose the results. If mitigation was performed, provide documentation of the system.
Seller Representations (Paragraph 24)
The 8.0 contract includes a detailed list of seller representations that survive closing. You're representing that you're not aware of and haven't received any written notification regarding: zoning or building code violations, pending rezoning, boundary disputes, condemnation proceedings, undisclosed easements, hazardous waste, tax exemptions you're not entitled to, unpermitted improvements, improvements not reflected in the tax assessment, pending or unconfirmed special assessments, and unpaid governmental special assessments. These representations are re-made at closing, so if anything changes between acceptance and closing, you must notify the buyer promptly.
Municipal Requirements
Many Illinois municipalities have pre-closing inspection requirements, point-of-sale ordinances, or municipal transfer taxes. These vary widely by town. Some require a whole-house inspection by the village, others focus on specific systems like water or sewer. The 8.0 contract (Paragraph 19) notes that the cost of transfer taxes, inspection fees, and required repairs are paid by the party designated in the ordinance unless the parties agree otherwise. Your attorney can help you check with your municipality early so you're not blindsided at closing.
Evaluating and Responding to Offers
Beyond the Purchase Price
Price matters, but it's not the only factor. Evaluate the strength of the buyer's financing. A pre-approved buyer with a conventional loan at a strong down payment is different from a buyer whose approval is contingent on selling their own home. Look at the earnest money amount, the closing date, inspection terms, and any contingencies. A slightly lower offer with fewer contingencies and a faster close can net you more than a higher price with strings attached.
Financing Types
The 8.0 contract (Paragraph 8) offers three financing structures: a traditional financing contingency, an all-cash transaction, or cash with financing allowed. Understand the implications of each. A financing contingency means the buyer can walk away if their loan falls through. An all-cash offer removes that risk. Cash with financing allowed means the buyer has the funds to close regardless but may still get a loan.
Sale of Buyer's Real Estate Contingency
If the buyer needs to sell their current home first (Paragraph 31), understand the risk. This contingency means your deal depends on a transaction you don't control. The 8.0 contract gives you a “kick-out” provision which states if you receive another acceptable offer, you can notify the buyer and give them a set number of hours to waive their contingency or lose the deal. Make sure the kick-out timeframe and additional earnest money requirements work for you.
Credit at Closing
Buyers sometimes ask for a credit at closing (Paragraph 3a) to cover prepaid expenses or closing costs. This reduces your net proceeds. If the buyer's lender caps the credit, the contract says the credit is reduced to whatever the lender permits. Factor this into your bottom-line calculation when comparing offers.
Under Contract: Your Obligations
Attorney Review
Just as the buyer has an attorney review period, so do you. Under Paragraph 13, your attorney has five business days after acceptance to approve, disapprove, or propose modifications. Use this time. Your attorney can negotiate terms, clarify ambiguous provisions, and protect your interests. If modifications are proposed, both sides have ten business days from acceptance to reach agreement after that time, either party can terminate.
Cooperating with Inspections
You're required to make the property accessible for the buyer's inspections on reasonable notice and to have all utilities turned on during inspections (Paragraph 15b). Be cooperative and responsive to scheduling requests. Delays here can create friction and slow the process.
If the buyer requests repairs after inspections, remember that under the 8.0 contract only “major component” defects are negotiable, not cosmetic issues or routine maintenance. A request for repairs that falls outside these terms gives you the right to declare the contract terminated. Discuss any repair requests carefully with your attorney before responding.
Title and Survey
You're responsible for delivering a title commitment for an ALTA title insurance policy in the amount of the purchase price (Paragraph 20). This needs to happen within customary time limitations and well in advance of closing. If the title search reveals any liens, judgments, or encumbrances, you'll need to resolve them before closing or have the title insurer agree to insure over them.
Many real estate attorneys, including Braverman & Makhlouf, are agents for title companies and will assist with ordering title, coordinating the title search, and resolving any issues that arise. This can streamline the process significantly since your attorney is already familiar with the transaction and can address title concerns as part of their overall representation. Unless the property is a condominium, you're also responsible for providing a plat of survey dated within six months of closing (Paragraph 21).
Condominium and HOA Obligations
If you're selling a condo or property in a common interest community, Paragraph 17 of the 8.0 imposes specific obligations. You must apply for the required HOA/condo documents within ten business days of acceptance, pay all regular assessments due through closing, pay any special assessments confirmed before acceptance, and notify the buyer of any proposed special assessments or assessment increases between acceptance and closing. If the association has a right of first refusal, you need to obtain a release or waiver.
Maintaining the Property
Between acceptance and closing, maintain the property in its current condition. Don't remove fixtures or personal property that are included in the contract. Don't stop mowing the lawn, clearing snow, or handling routine upkeep. The buyer has a right to a final walkthrough (Paragraph 23) and will be checking that the property is in substantially the same condition as when they made their offer.
You're required to deliver the property in broom-clean condition with all refuse and personal property not being conveyed removed at your expense.
Fixtures, Personal Property, and the Bill of Sale
One of the most common sources of disputes is disagreement over what stays and what goes. The 8.0 contract (Paragraph 7) includes a detailed checklist of items conveyed at no added value. This list includes everything from refrigerators and dishwashers to garage door openers, light fixtures, window treatments, and surveillance systems.
If there's something on that list you intend to take with you, exclude it explicitly in the “Items Not Included” section before the contract is signed. Anything checked on the list or not specifically excluded is expected to remain. These items are transferred by Bill of Sale at closing.
Remember: you're warranting that included fixtures, systems, and personal property will be in operating condition at possession. If something breaks between acceptance and closing, you may need to repair or replace it.
Prorations and Financial Considerations
Property Tax Prorations
Under the 8.0 contract (Paragraph 12a), property taxes are prorated based on a percentage of the most recent ascertainable full year tax bill. In Illinois, taxes are paid in arrears, so you'll be crediting the buyer for your share of the current year's taxes at closing — even though the bill hasn't come yet.
If you've been receiving a homeowner exemption, senior exemption, disabled veteran exemption, or senior freeze, you're responsible for submitting all required documentation to preserve those exemptions through the period you owned the home. The proration should not include exemptions you're not lawfully entitled to.
For a more detailed explanation of how property taxes work in Illinois, see our article Real Estate Tax Prorations at Closing in Cook and the Collar Counties.
If the property has been recently improved but not yet reassessed at its full improved value, Paragraph 12b requires a 3% escrow holdback at closing to cover the anticipated tax increase once the reassessment catches up.
Transfer Taxes and Stamps
The seller typically pays the state and county real estate transfer stamps (Paragraph 18), unless local ordinance says otherwise. Some municipalities impose their own transfer taxes on top of the state and county stamps, and the party responsible varies by ordinance. Check with your municipality and factor these costs into your net proceeds calculation.
Association Fees and Special Assessments
If the property is in an HOA or condo association, association fees are prorated to the closing date (Paragraph 12c). You're responsible for paying the remaining balance of any special assessments confirmed before acceptance (Paragraph 17b). If a special assessment is proposed or an increase in regular assessments occurs between acceptance and closing, you must notify the buyer — and if you can't reach agreement on who pays, either party can void the contract (Paragraph 17c).
Mortgage Payoff
If you have an existing mortgage, contact your lender well before closing to request a payoff statement. This tells you the exact amount needed to satisfy the loan as of the closing date, including any per-diem interest. Your attorney or the title company will handle the payoff at closing, but you need to ensure the numbers are correct and that there are no prepayment penalties you didn't anticipate.
Capital Gains Considerations
If you've lived in the home as your primary residence for at least two of the past five years, you may qualify for the capital gains exclusion — up to $250,000 for single filers or $500,000 for married couples filing jointly. If your gain exceeds the exclusion, or if you don't qualify, you'll owe capital gains tax. Consult a tax professional before closing to understand your exposure. FIRPTA withholding requirements may apply if you're a foreign person (Paragraph 19b).
Earnest Money Disputes
If the deal falls apart, earnest money can become contentious. Under the 8.0 contract (Paragraph 27), earnest money is released only upon joint written direction from both parties or a court order. If you believe the buyer defaulted, you can't simply claim the earnest money. You need the buyer's written agreement or you'll need to go to court.
If the escrowee is a licensed brokerage and hasn't received joint direction, they can give fourteen days' written notice of how they intend to disburse the funds. If neither party objects, they proceed. If either party objects, the funds stay frozen until there's agreement or a court order. In some cases, the escrowee may file an interpleader action and deposit the funds with the court for resolution.
Damage or Condemnation Before Closing
If the property is materially damaged by fire, storm, or other casualty before closing, the buyer has the option to either terminate the contract and get their earnest money back, or accept the property as-is along with your insurance proceeds (Paragraph 22). You're not obligated to repair or replace damaged improvements. Make sure you maintain your homeowners insurance through the closing date.
At Closing
You'll sign the deed transferring ownership, an affidavit of title, transfer tax declarations, and various other documents. Your attorney or the title company will handle the mortgage payoff, prorations, and disbursement of funds.
Bring a government-issued photo ID. Make sure you've provided all necessary keys, garage door openers, access codes, and any manuals or warranties for systems and appliances.
Your net proceeds are typically wired to your bank account after closing, usually the same day or the next business day.
Possession and Post-Closing
Standard Possession
Unless you've negotiated otherwise, the 8.0 contract (Paragraph 6) requires you to deliver possession at closing. That means you and all occupants must have vacated the property and delivered keys to the buyer or to your brokerage's office by the time of closing.
Post-Closing Possession
If you need time after closing to move out, Paragraph 35 provides a framework. You'll deposit a sum in escrow (2% of the purchase price if the contract is silent on the amount) and pay the buyer a daily use-and-occupancy fee. If you overstay the agreed possession date, the daily rate triples. This is expensive and should be avoided. Plan your move well in advance.
During any post-closing possession period, you remain responsible for utilities, contents insurance, liability insurance, and home maintenance until you hand over the property.
Seller's Closing Checklist
- Complete the Illinois Residential Real Property Disclosure honestly and thoroughly.
- Provide lead-based paint and radon disclosures if applicable.
- Check your municipality for pre-sale inspection requirements or transfer taxes.
- Request a mortgage payoff statement from your lender.
- Order the plat of survey early (unless selling a condominium).
- If in an HOA or condo association, apply for required disclosure documents within ten business days of acceptance.
- Keep all utilities on through closing and inspections.
- Maintain the property in its current condition — don't remove included fixtures.
- Maintain homeowners insurance through the closing date.
- Gather all keys, garage openers, access codes, and appliance manuals for the buyer.
- Remove all personal belongings and leave the property broom clean.
- Consult a tax professional about capital gains exposure before closing.
- Cancel or transfer utilities, mail forwarding, and any service contracts after possession is delivered.
Disclaimer: This guide is for informational purposes only and does not constitute legal, financial, or tax advice. Every transaction is different. Consult with your real estate attorney, tax professional, and financial advisor for guidance specific to your situation.