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KNOW YOUR CONTRACT:

THE MULTI-BOARD RESIDENTIAL REAL ESTATE CONTRACT 7.0

By Tom Haught

There’s a new contract in town: the Multi-Board Residential Real Estate Contract 7.0. The 7.0 was approved in 2019 as the new standard contract for purchasing residential real estate in Illinois. The Multi-Board Residential Real Estate Contract 7.0 seeks to correct what some considered shortcomings in the predecessor version (the 6.1).

In this article, we are not going to discuss every change, but instead highlight the most important ones. They include:

Financing Contingency. The revised financing contingency no longer requires the buyer to estimate when the lender will be ready with financing. Instead, the financing contingency date defaults to not later than forty-five (45) days after the date of acceptance or five (5) business days prior to the date of closing, whichever is earlier.

Contract Termination.  In the revised attorney review provision of the Multi-Board Residential Real Estate Contract 7.0, a change in paragraph 10 states that either party can terminate the contract if both sides cannot come to an agreement on the proposed modifications to the contract after ten (10)  business days. This revision makes it clear that both parties must wait the 10 business-day period before terminating the agreement.

Inspection Contingency. Perhaps the most significant change in the new contract is the revised language which states that minor repairs, routine maintenance items and painting, decorating, or other items of a cosmetic nature are no longer allowable reasons for a buyer to terminate the contract. The actual cost to repair those items is of no relevance. However, at least in my experience, this revised language has not stopped any buyer from requesting the repairs of minor and routine maintenance items.

So what should buyers do in response to the new contract? There are three things they should do, immediately after they are under contract: (1) apply for a loan; (2) pay the loan and (3) pay the appraisal fee. If the buyer does not do these three things, and the seller decides not want to cancel the contract, the buyer is moving forward WITHOUT a financing contingency. This is never a good idea unless the buyer is able to pay cash for the property.

For the home inspection, the buyer must know what is and what is not a legitimate inspection issue. For example, if the buyer demands that the carpets be cleaned, or that the water heater be replaced because it’s old, the seller has the right to respond by cancelling the contract.

However, when a buyer views a home that they are interested in buying, they should take note of every deficiency, such as a dirty carpet or an old water heater. The buyer should then make their offer based on the condition of the property, knowing that they will have to have carpets cleaned or replaced and they will soon be on the hook for a new water heater. The purpose of the inspection will be solely for the major components that a buyer has no expertise in evaluating. In other words, if the professional home inspector tells the buyer that there’s a problem with the foundation, plumbing or electricity, those are legitimate items to raise and request repair from the seller.

When a buyer retains the law firm of Gardi, Haught, Fischer & Bhosale LTD for a real estate purchase, we explain the new Multi-Board Residential Real Estate Contract 7.0 in detail and assist them in every part of the transaction from contract to closing. Contact us by requesting a free case evaluation button below.

Client Testimonials

Jimmy Su

We just had great experience with Tom Haught and his paralegal Courtney Kropf. The communication is clear and fast. All emails were replied within 30 minutes. We will definitely work with Tom Haught again.

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Jeannette Gonzales

Was recommended to them from my company. They did an excellent job and always answered all my questions. Were always upfront with all things and made sure I understood everything that was explained to me.

Ardus

We used the law firm during the sale of our house. We dealt with Mr Haught and Courtney, who made the process very smooth. They were professional, yet very friendly to deal with.I would not hesitate to recommend them to my family and friends.

vanissa colaco

Our immigration experience with Ann Fischer has been amazing! She has been meticulous, organized and worked on our case in a timely manner. Ann and her team went above and beyond to address all of our concerns and provide a personalized support which made a significant difference during our stressful time.I highly recommend her services to anyone seeking legal representation for their immigration matters.

Mike and Keeley Aulert

We have used Tom Haught for two home purchases and one sale over the years and continue to be impressed by his professionalism, responsiveness, and thoroughness. Reasonable pricing too. Highly, highly recommended.

Waseem Chaudhry

Gardi, Haught is one of professional firm, I have been with G&H since last 8 years in all legal matters.RegardsWaseem Chaudhry

Khurram Ghani

Tom and his dedicated crew recently helped me close on a commercial property, and I must say they did an exceptional job! Throughout the entire process, they were incredibly responsive, attentive to detail, and a pleasure to work with. Their professionalism and expertise made the transaction smooth and efficient. I am thoroughly impressed with their performance and definitely plan to work with them again in the near future. I highly recommend Tom and his team for anyone in need of real estate services!

Ryan B

I'd like to thank Gardi, Haught, Fischer, & Bhosale LTD and the whole Team! For amazing service. They made my selling experience fast, easy and at my convenience. I'm very thankful for the whole team over there. Their service meant alot to me and will be using them in the future. 10/10 !

Roberta Murphy

We worked with Tom and Courtney mainly on our recent closing. While it did not go as planned (all the other side’s issues) they did a great job keeping us informed and in track. Highly recommend.

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