Tag: #realestatelaw

Mortgage or cash offer when purchasing a home in Illinois

The majority of residential real estate financing in Illinois is loan contingent (mortgage) or cash (no mortgage), with variations as to each.  This post focuses on the financing options as used in the Multi-Board Residential Real Estate Contract (“MBRE”) 7.0.  The following are three types of financing used in the MBRE 7.0: 

Loan Contingency (Paragraph 7(a) of MBRE 7.0):

If the parties agree that the transaction will be subject to a Loan Contingency (mortgage), the buyer is only required to purchase the property if they are able to meet all the terms of the Loan Contingency.  The Loan Contingency provision protects a buyer from having to purchase real estate when they don’t qualify for the agreed upon loan terms (or better, with some terms), including: (a) the percentage of the purchase price to be borrowed; (b) the maximum interest rate for the loan; (c) whether the rate is fixed/adjustable; (d) the specified period of time for loan repayment; and (e) the maximum amount of ‘points’ to be paid by buyer. 

If the Buyer is unable to provide loan approval and serves notice to the Seller by the ‘Loan Contingency Date’, the Contract shall become null and void.  The default ‘Loan Contingency Date’ is either 45 days after the date of acceptance or 5 business days prior to the date of closing, whichever is earlier. Although, this date can be modified during the Attorney Review, or may be extended by mutual agreement of the parties.

Cash transaction with no mortgage (Paragraph 7(b) of MBRE 7.0):

This should be selected if the buyer wants to pay cash (no mortgage loan).  It also has the added benefit of splitting the escrow fee between the buyer and the seller (unlike when financing with a mortgage).  A seller may ask the buyer to verify they have the requisite funds to purchase the property, and the buyer may be required to provide financial information to verify those funds.  This option can be used when a buyer has sufficient money to cover the purchase, and when acquiring property that may be difficult to obtain with a mortgage loan. Unlike the Loan Contingency, the buyer is generally obligated to purchase the property, regardless of their change in financial circumstance.

Cash transaction, mortgage allowed (Paragraph 7(c) of MBRE 7.0):

This option may be selected if the buyer has the funds to purchase without a mortgage, but would like to have the option to purchase using a mortgage loan. Regardless of whether the buyer is able to qualify for a mortgage/loan, he or she is still required to purchase the property.  Some buyers that have the cash available to make the purchase, but would like to explore the option of a mortgage may choose this option.  It may appear as a stronger offer to the seller, since they know the buyer will not be able to back-out for inability to obtain a mortgage loan.   The escrow fee will be split between the seller and buyer if purchase without a mortgage loan, otherwise the buyer will pay the entire escrow fee.   

If you are unsure about your obligations/rights pursuant to the selected financing, or would like to speak with an Attorney regarding your real estate purchase/sale, please contact Blume Law

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This blog and any materials available at this web site are for informational purposes and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between the Law Office Of Christian Blume, LLC or Christian Blume and the user or browser.

How to Appeal an Administrative Ruling from the City of Chicago Department of Administrative Hearings

The prosecution of ordinance violations can take place at the City of Chicago Department of Administrative Hearings (DOAH), located at 400 W. Superior.  DOAH acts as a ‘quasi-judicial body.’  Cases are heard by licensed attorneys, paid for and contracted with the City of Chicago, and commonly referred to as Administrative Law Judges (or ALJs).  These cases are typically shorter than other litigation, often times, one hearing.  The result can be anywhere from a dismissal of the charges to a substantial fine. Read More Here.

If you failed to appear and present your case to the ALJ, a default judgment may have been entered against you, and your first option may be to file a motion to set-aside the default motion.  This motion generally must be filed within 21 days of the mailing date stamped on top of the default judgment order (the time limit may not apply under certain circumstances).  The motion should be filed in person at 400 W. Superior, and you must appear or have an attorney appear on the date the motion is scheduled.   

If you did appear and contest the charges against you, and a judgment that was entered that was not in conformity of the law, or the ALJ didn’t consider the requisite facts, you may want to appeal the decision.

You do have a right to appeal the decision of the ALJ to a Circuit Judge.   Pursuant to 735 ILCS 5/3-104, jurisdiction to review final administrative decisions is vested in the Circuit Courts.  Unlike ALJs, the Circuit Court is made up of full-time judges, elected or appointed, who are not paid by the City of Chicago. 

The process for appealing and Administrative Law Decision

After your hearing at the DOAH, you will likely be given a copy of the “Findings, Decisions & Order”.    Pursuant to 735 ILCS 5/3-103 “Every action to review a final administrative decision shall be commenced by the filing of a complaint and the issuance of summons within 35 days from the date that a copy of the decision sought to be reviewed was served upon the party affected by the decision…”  So if you are given a copy of the final determination of the ALJ, this would be the start of the 35 day time limit to file your appeal.  If you fail to attend the hearing or otherwise do not receive a copy of the final order from the ALJ, the 35 day period will start when the Findings, Decisions & Order is mailed.

To file an Administrative Appeal, you must file a Complaint for Illinois Administrative Review with the Clerk of the Circuit Court of Cook County, with the Findings, Decisions & Order attached, as well as a summons, and an administrative review cover sheet.  These filings can be made using the forms provided by the Clerk of the Circuit Court of Cook County. 

There is a fee for filing your appeal, and the appeal can be filed in room 602 of the Richard J. Daley Center, 50 W Washington St., Chicago, IL, or electronically.  When the Complaint is filed a court date will be given, typically at least a few weeks in the future.   

The summons is the form notifying the City and the Specific City Department(s) that an administrative review has been filed and the date of the first hearing.   You must mail a copy of the Summons, Complaint and Cover Sheet to each applicable City Department, as well as the City of Chicago Department of Law and the City of Chicago Department of Administrative Hearings.  

At the first court date, the Judge will call your case.  The City will appear and request time to respond to your complaint.  The City will likely be granted time to file its answer to your complaint, or “the record”, which includes a transcript of your administrative hearing and all the evidence used by the City in prosecuting your case.   The Judge will permit you time to file what’s called “Specification of Errors” form.  The “Specification of Errors” is the reasons and your argument as to why the Administrative Hearing Officer (ALJ) was wrong.  The Judge will set the next court date and time. 

The Specification of Errors will need to be filed after your receive the City’s answer.  You will need to mail a copy of the Specification of Errors to the City, as well as file a copy with the Court. 

The next Court date, the judge (who may be a different judge than the one on your first court date) will permit both you and the City to present your arguments.     The Judge will make a ruling on this date. 

*Christian is an Illinois lawyer who assists property owners facing ordinance violations home owners (or future home owners) with real estate transactions, and small businesses. Call (773-706-7514) or email (christian@attorneyblume.com).

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This blog and any materials available at this web site are for informational purposes and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between the Law Office Of Christian Blume, LLC or Christian Blume and the user or browser.