Have you ever wondered how does the attorney review and inspection period work in Chicago? If so, you aren’t alone. This is the question we get asked about the most.
Here’s how it works.
After a contract gets executed (which means signed by both the sellers and buyers with copies delivered to all parties) the contract automatically moves forward into the attorney review and inspection time period. This time period is usually 5 to 7 business days depending how your contract is written so read your contract carefully.
Generally, first up is the inspection. It’s important to schedule the inspection for as soon as you can after the contract is executed. Ideally the next day or two. The inspection itself takes 2-3 hours depending on whether you’re buying a condo or a single family home and you pay the inspector at the inspection’s conclusion. It then takes 24-48 hours for the inspector to write up the report and deliver it to the buyers. If you’re doing a radon inspection, which we highly recommend if you are buying a single family home or living below the 3rd floor, then the inspector will need to return two days after the initial inspection to measure the radon levels. Once the inspection report comes in it should be discussed with your agent who will then negotiate any inspection repairs or credits at closing with the seller’s agent.
While the above is happening, the attorneys are also reviewing the contract. Once any inspection items have been negotiated, the attorneys will negotiate any changes they want made to the contract and write up the inspection decisions. Once all parties agree to everything, the attorneys will sign off on the deal, the attorney review time period will end and the deal will move forward to the buyer’s mortgage officer for the ordering of the appraisal and underwriting.
As you can see, a lot has to happen in just 5 to 7 business days. That’s why it’s important to have your attorney and inspector picked out before you make an offer on a property. See my list of recommended attorneys and inspectors. It’s also important to get the inspection done asap after contract acceptance/execution because everything in the attorney review time period hinges on the inspection report.
