Key Takeaways
- Illinois uses standardized Multi-Board residential contracts in most transactions
- The attorney review period allows 5 business days for attorney modification or disapproval
- Earnest money is typically held by the listing broker or a title company
- Contracts must identify parties, property, price, and terms to be valid
- Time is of the essence clauses are common but must be specifically included
Last updated: January 2026
Purchase Contracts
Understanding Illinois contract practices is essential for the exam.
Standard Contract Forms
Multi-Board Contract
| Feature | Description |
|---|---|
| Widely used | Most common form |
| Standardized | Multi-Board Residential |
| Attorney review | Built-in provision |
| Contingencies | Standard options |
Required Elements
| Element | Description |
|---|---|
| Parties | Buyer and seller names |
| Property | Address and legal description |
| Purchase price | Amount |
| Earnest money | Deposit amount |
| Closing date | Target date |
| Contingencies | Conditions |
| Signatures | All parties |
Attorney Review Period
Illinois Practice
| Feature | Details |
|---|---|
| Duration | 5 business days |
| Purpose | Attorney review/modify |
| Either party | Can disapprove |
| Modifications | Attorney can request |
| Waiver | Can waive period |
During Attorney Review
| Can Do | Result |
|---|---|
| Approve as-is | Contract proceeds |
| Request changes | Negotiation |
| Disapprove | Contract cancelled |
After Review Period
| If | Then |
|---|---|
| No disapproval | Contract binding |
| Modifications agreed | Proceed with changes |
| Cannot agree | Contract terminated |
Common Contingencies
Financing Contingency
| Feature | Details |
|---|---|
| Purpose | Buyer obtains loan |
| Timeframe | Typically 21-30 days |
| Failure | Return earnest money |
Inspection Contingency
| Feature | Details |
|---|---|
| Purpose | Property inspection |
| Timeframe | 5-10 days typically |
| Options | Accept, request repairs, cancel |
Sale of Buyer's Property
| Feature | Details |
|---|---|
| Purpose | Buyer must sell home |
| Kick-out clause | Common addition |
| Protection | For seller |
Earnest Money
| Aspect | Details |
|---|---|
| Amount | Typically 1-3% |
| Held by | Listing broker or title co. |
| Escrow | Separate account |
| Disposition | Per contract terms |
Time is of the Essence
| Feature | Meaning |
|---|---|
| Strict deadlines | Must be met exactly |
| Must be stated | Not automatic |
| Consequences | Breach if missed |
Loading diagram...
Test Your Knowledge
How long is the standard attorney review period in Illinois?
A
B
C
D
Test Your Knowledge
What happens if neither party's attorney disapproves during the attorney review period?
A
B
C
D