Examining Your Title

Michna Law Group has received numerous questions from clients over the years pertaining to real estate law. Today, we'd like to answer another question related to the residential real estate industry: What are title examinations and abstracts?

When you are considering purchasing a property, you may want to learn a little more about its history. Title examinations are used to shed light on the subject.

A title examination is a study of the property's historical ownership. Sometimes, this examination can provide information on others outside of immediate ownership facts, such as whether there was a dispute in ownership.

Meanwhile, a title abstract is a collection of public records containing information on the ownership of a piece of real estate. Throughout the examination process, a title examiner will determine who currently owns the land along with potential defects or claims against the ownership.

If there are any issues, the title examiner will be able to answer what the home buyer(s) must do to receive good title record at closing.

For more information on real estate law, please contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.

Paying the Realtor

Michna Law Group receives tons of common questions pertaining to real estate law. Today, we'd like to take a look at another party in the home closing transaction: the realtor.

With closing costs and other associated fees mounting on both sides, who typically pays the realtor?

Usually, in a home closing, it is the seller's responsibility to pay both the listing agent and the selling agent. Sometimes, both agents can, in fact, be the same individual.

The reason for this stems from common agency law. This means that both the listing and selling agent are working on behalf of the home seller. On occasion, the prospective home buyer may hire a realtor to work exclusively for them. In this case, it would be the home buyer's responsibility.

Generally, realtor commissions reflect 6% of the property's sales price. But with virtually everything in real estate, this, too, may be negotiable.

In either case, when finalizing a real estate sale, both the buyer(s) and the seller(s) must carefully review the contract to determine whether the realtor is charging either party an additional administrative or processing fee (typically between $150.00 to $400.00).

For more questions pertaining to real estate law, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.

Find Our Chicago Office on Yelp!

Michna Law Group now has a Yelp page for its Chicago office.

Previously, our Northbrook-based real estate law firm only had a page for the Northbrook office. However, with numerous home closings taking place at our Chicago location, it seemed about time to introduce a separate page.

For those unfamiliar with our Chicago location, it can be found at this address:

221 N LaSalle St
Suite 814
Chicago, IL 60601

For those who have worked with us in the past, we would appreciate if you can please leave a review describing your experience. Every review helps!

For questions pertaining to real estate law, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.

Why You Need a Real Estate Attorney

Real estate law is a special concentration within the law, not usually covered under general contract law. This particular field of law practice contains special nuances and fiduciary requirements not found in other forms of law.

While some states mandate using an attorney for the home buying or home selling process, Illinois is not one of them. That said, there are numerous key advantages to working with a real estate attorney.

For one, real estate attorneys receive education and training on state-specific laws. Even if you're familiar with the legal system's layout in one state, in another, it can be completely different.

More so, the home buying process can often have complications. These complications can range from structural issues with the property to questions of ownership and who has the actual right to sell said property.

Overall, the purpose of a real estate attorney is to ensure that the closing transaction comes together as seamlessly as possible. This is done through a thorough contract review process, often including negotiation for any needed home repairs. When it comes time for the closing, the real estate attorney is part of your team designed to help you, working collaboratively with your realtor and lending agent.

For more questions pertaining to real estate law, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.

What is a Good-Faith Estimate?

When it comes to securing a loan, the good-faith estimate is a three-page form. The good-faith estimate is primarily used to encourage price shopping when it comes to mortgage loans and settlement services, enabling you to determine the best mortgage deal for you.

In terms of content, the form displays the loan terms and settlement charges you will pay if you decide to proceed with a given loan. Furthermore, some charges can be changed prior to the loan's beginning, whereas others must remain the same. The most helpful feature is the "shopping cart" on the form, allowing you to instantly compare multiple loans and settlement costs.

Ultimately, the good-faith estimate may be provided by either a mortgage broker or a mortgage lender. Prior to receiving the report, the loan originators can only charge you for a credit report.
That said, they are unable to charge you additional fees, such as appraisals and inspections prior to the estimate.

For the loan originator to provide a good-faith estimate, he/she will need the following:

• Name
• Social Security Number
• Gross Monthly Income
• Property Address
• Estimated Property Value
• Prospective Amount of Mortgage Loan

For more information on good-faith estimates, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.

Illinois Real Estate Market - June 2017

Spring and summer are generally Illinois' meat and potatoes when it comes to performing real estate transactions. While this past winter was slow, the market saw a great uptick once springtime arrived.

As a whole, June 2017 home sales saw an increase from June 2016. According to the Illinois Association of Realtors, sales are up 0.3% year-over-year, going from 19,001 to 19,066.

The story is even better for Chicago. The Windy City jumped a full percentage point from 2016 to 2017. One year ago, 13,916 homes were sold, whereas 14,052 were sold this year.

But there is a downside. Illinois home inventory saw a 14% decline from June 2016 to June 2017 as there are now only 59,088 homes for sale (from 68,720).

In response to this, Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory at the University of Illinois said,

"While the housing market continues to record gains in prices and sales, the inventory problem remains an important issue. Hopefully, now that the state has a budget, a recovering state economy will encourage more investment in housing – both new construction and investment by first-time buyers."

In addition,  Matt Silver, President of the Chicago Association of REALTORS® and Partner at Urban Real Estate.

"In June, the market exhibited a bit of a holding pattern. Inventory was a
contributing factor, as once you sell your home, you’ll need to then buy another – so, sellers are being firm on their pricing, and while some buyers are willing to wait for their perfect home, other motivated buyers are driving down the time on market. As the weather continues to heat up, people will get down to business, provided the price is right."

For more information on Illinois real estate, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.

Protection for Home Buyers

Due to federal law, home buyers are protected by certain provisions during the loan process and the loan servicing process following a settlement. The circumstances in which your protected are widespread.

Some of them include:

• Your lender overcharged you during settlement without reimbursement.

• A settlement service paid or received a kickback for a business referral.

• You were mandated to use a company affiliated with your real estate agent, builder, or originator.

• Your loan servicer failed to pay your taxes or insurance premiums in a timely manner.

• You don't receive a response from your loan servicer regarding a request for information or a reported error.

• You were charged for insurance you don't need or overcharged for force-placed insurance.

For more information on real estate law, contact Michna Law Group by email at BJM@MichnaLaw.com or by phone at 847.446.4600.