In some states, real estate investors are used to using just a realtor and title company to buy a property. However, in Chicagoland, there are certain legal aspects to buying a property that an agent isn't allowed to do by law, so we use legal counsel to help us complete the transaction. One thing to note is that a real estate agent cannot make changes to a contract beyond filling in blanks, and an attorney cannot negotiate the property values of a contract. So, in Illinois, your Realtor negotiates the basics of the contract, including price, and then your attorney handles the attorney review period (more on this later). This includes doing tasks like negotiating repairs or credits from your home inspection, making sure the building does not have any unknown building violations, working with or as a title agent to clear the title, and making sure the transaction goes smoothly when it comes to building your real estate team.
For many new investors without a team, they may be recommended to an attorney by their realtor. If the realtor is representing you (not the seller) and also has experience or a good team behind them, I think it is often safe to work with people your realtor knows work well with them; however, if you are jumping from realtor to realtor looking for a deal or are working through a listing agent representing the seller, I would be cautious using someone you haven't researched. This is why I compiled our Top 5 Real Estate Closing Attorneys for you to look into if you’re buying in the Chicagoland area. Please note the list below is not an end-all-be-all of the attorneys you will need when building your investment empire, but a list of attorneys we recommend for closings. We will publish more lists of attprneys for evictions and other things you may run into in the future.
So what is the process and what do the attorneys do? Once your submitted offer is accepted and counter-signed, the attorney will jump in to get the transaction to the finish line.
The first five days after the contract is counter-signed is called the attorney review period. This is where your attorney will mark up the contract to make sure that it is fair or, at best, advantageous to you. Here are some things commonly looked at or adjusted:
1. Proration of taxes: In Illinois we pay taxes in arrear, so the first tax bill you get will have at least some of the seller's bill. With that being said, we don't know what the price will be for taxes until well after you close so we have to make assumptions, and one of the most significant assumptions missed is that they will rise significantly when you are buying a property that was just rehabbed, and that the tax assessment of the home will be much higher than when it was a raggedy home falling apart.
2. Ask for any insurance claims in the past 5 years. Even though you just bought the home, past insurance claims made on the home can cause your insurance rates to skyrocket as insurers see past claims as indicators of new claims to come.
3. Check for building and code violations. You don't want to buy a building that the city is asking to be condemned. A good attorney will make sure that the city does not have the building you are buying in their cross hairs.
4. Negotiate any repair credits or repairs from your inspection report.
After the attorney review is signed off on, your attorney will work with the seller's attorney and title company to review the title and make sure that the person selling you the home has the full rights to sell you the home and no one else has a claim to it. Your attorney will be the liaison during the contract between your lender, realtor, and the seller's team, helping to get any documents needed for the loan from the sellers. This may include surveys, HOA documents, etc.
Finally, after the loan is cleared to close, they will schedule your closing and go over all the documents that you are signing; a good attorney will make sure you understand everything you are signing before allowing you to sign it.
After closing they will be there to support you if it is found out that the seller mis disclosed something or lied about something during the due diligence period.
So now that we know what they do, here is our list of attorneys to research and choose from. They are in no particular order as all 5 are great choices depending on the type of deal you have.
Law Office of Tosh Chandy
Tosh Chandy is not only our first guest to appear twice on our podcast, but he is also an excellent attorney; understanding both the real estate agent side of things and the closing process, he can make sure that you are not buying a dud property as well as forming a great attorney-client relationship with his clients. You can hear him on our podcast here. Not only does he do Chicago area closings but also helps clients with other aspects of real estate transactions, such as forming an LLC or real estate investment trusts to hold their investment properties in, or dealing with the city building department to fight building violations after you buy the home.
Visit Tosh at https://attorneytosh.com/ or call him at 312.893.5511
Law Office of Anthony V. Panzica
Another great podcast guest, Anthony, was born and raised to do real estate transactions with a whole legal team in his office. They are easy to get a hold of and get quick answers to, whether by email or phone calls. Anthony's extensive experience dates back to before he was walking as he saw his dad, a real estate attorney, practicing throughout his life. Some would say he was born to run a top law firm in the city of Chicago. Beyond everyday property transactions, he also deals with more complex transactions, including a specialty in short sales.
Reach out to Anthony and his team at https://lawavp.com/ or give them a call at 773-539-5853
Chicagoland Property Law
The largest firm when it comes to the number of Attorneys and staff on their dedicated teams, Chicagoland Property Law has not just one experienced real estate attorney but five leading lawyers at their practice. They are prepared to deal with any real estate issues that can come up during a real estate transaction. There are practice areas in commercial property and residential real estate transactions and estate planning to ensure that your real estate portfolio is a gift and not a burden to your family when you leave this life.
You can contact them at https://chicagolandpropertylaw.com or by phone at (773) 775-7805. They also have offices in Chicago, Orland Park, and Crystal Lake.
Cervantes Chatt & Prince P.C.
A staple in the investor community here in Chicago at always attending a ton of real estate group meet-ups, they have built a powerhouse wide-ranging real estate practice working the more complex commercial real estate transactions, including real estate development, 1031 exchanges, and lease writing. Marc and his legal team are here to serve you both to get to closing and after closing. Whether you are buying your first investment or your institutional investors are starting a new project, look at their website for more information at https://www.ccpchicago.com/realestate or call them at 312.606.9529. They are truly a full-service law firm.
Jill Daniels Law
Jill is not only one of the best lawyers in real estate closings but also specializes in divorces, meaning you know she is a great negotiator and mediator even in the toughest of real estate matters. Jill's range of services includes residential real estate transactions, estate planning, and divorce mediation. For more info, fill out her contact form here https://jilldanielslaw.com/contact/
Once you close your deal, it is time to start thinking about how to manage your property and that is where Chicago Style Management comes in. click here to fill out our contact form for a free consultation on how to make your property profitable for you in the long term. We look forward to helping you build your real estate empire and becoming rich.
