The purchase agreement is a document that provides all the details regarding the sale and purchase of a certain item. The document itself, however, doesn’t transfer any legal rights from the seller to the buyer.
By creating the purchase agreement, you are setting the terms and conditions of the property transfer and preventing any future misunderstandings and disputes with the other party.
You can use the purchase agreement for more complex property transfers or for transfers where the purchase price is over $500.
Illinois Purchase and Sale Agreement Form
The main elements of the Illinois purchase agreement are the terms under which the seller agrees to sell, and the buyer agrees to buy a certain property.
Moreover, it includes information about the seller and the buyer, the property description, the purchase price, details about the financing, disclosures required by federal and state law, and other terms and conditions of the property transfer.
The Illinois purchase agreement is also known as:
Other Names for Illinois Purchase Agreement
Illinois sale and purchase agreement
Illinois purchase and sale agreement
Illinois sale and purchase contract
Illinois purchase and sales contract
However, it all refers to one document that provides the terms and conditions for the property transfer in Illinois.
Purchase Agreement Illinois Laws & Requirements
Besides the essential elements like the property description and the purchase price, the Illinois state law doesn’t set any requirements regarding the formality of the Illinois purchase agreement.
However, there are a few disclosures that every Illinois purchase agreement must include, as required by federal and state law.
Purchase Agreement: Required Disclosures in Illinois
In this section, you can find the list of disclosures that must be included in the Illinois purchase agreement:
Lead-Based Paint Disclosure: Federal law requires the seller to inform the buyer about the lead-based paint hazard at the property. This is required for any property built before 1978 or if there is a known presence of lead-based paint on the property.
Residential Real Property Disclosure: The seller must fill out the form and give it to the buyer before signing the purchase and sale agreement. This report provides all the necessary information about the property's condition. (765 ILCS 77/20)
Radon Disclosure The seller must fill out and give the radon disclosure form and the Radon Testing Guidelines for Real Estate Transactions to the buyer before signing the Illinois purchase agreement.
Common Types of Purchase Agreements in Illinois
This section provides all the types of purchase agreements used in Illinois:
Types of Purchase Agreement
Residential real estate purchase agreement. This type of document is often used to determine the conditions for selling and purchasing a house, apartment, or other kinds of property used for residential purposes.
Commercial real estate purchase agreement. You can use this type of purchase agreement to sell and purchase office space, warehouses, manufacturing facilities, and other kinds of commercial properties.
Vehicle purchase agreement. Known as the motor vehicle bill of sale. You can use it to transfer ownership of a car, motorcycle, truck, and other kinds of motor vehicles.
Business purchase agreement. Used to provide terms for transferring the company from the seller to the buyer.
Land purchase agreement. You can use it to provide terms and conditions for the transfer of agricultural, residential, commercial, or other kinds of land in Illinois.
Stock purchase agreement. This type of purchase agreement is used for selling stocks and shares in companies.
Purchase Agreement in Illinois FAQ
Yes, a purchase agreement is a legally binding document in Illinois. The Illinois purchase agreement becomes legally binding the moment both the seller and the buyer sign it.
Yes, the Illinois sales agreement needs to state the purchase price. If the parties don’t enter the purchase price, the document won’t have any effect since the main obligation of the buyer is missing.
No, purchase and sales agreements in Illinois don’t need to be notarized. The reason for this is that the purchase agreement itself doesn’t transfer any legal rights.
Yes, the seller can back out of the Illinois purchase agreement in the event that the buyer fails to meet the contingencies set in the Illinois purchase agreement.