For Real Estate Brokers
Inspection & attorney review checklist for brokers
The two most fragile weeks of any Illinois transaction. What brokers should track to protect the deal and protect their license.
The first 10 business days of an Illinois residential real estate transaction — covering attorney review and inspection contingency — are the most fragile period of any deal. Brokers who track the right milestones during this window protect both the deal and their own license.
Day 0 — Contract signing
Contract signed by both parties. Earnest money delivered to the seller's brokerage or title company. Both sides have engaged attorneys (or should have). The 5-business-day attorney review window starts the next business day.
Broker tracking: confirm earnest money delivery; confirm both sides have attorneys engaged; calendar Day 5 attorney-review deadline.
Days 1-2 — Inspection scheduled
Buyer's broker schedules inspection during this window. Inspection typically occurs Day 2-Day 4. Inspection report typically arrives Day 3-Day 5.
Broker tracking: confirm inspection scheduled; confirm property access arranged; provide buyer with reasonable inspector recommendations (without representing them as broker recommendations).
Days 1-5 — Attorney review modifications
Buyer's attorney drafts and submits modifications to seller's attorney. Common modifications: inspection contingency, financing contingency, escalation review, appraisal gap, possession terms. Seller's attorney drafts tax-proration proposal. Both attorneys negotiate.
Broker tracking: stay in informational loop with own client; do NOT draft modifications, give legal advice, or counter-propose on terms; route legal questions to the attorney.
Day 4-5 — Inspection-response negotiation
Buyer's attorney drafts inspection-response demand based on inspection findings. Common demands: repair, credit, price reduction, or termination. Seller's attorney evaluates each finding and proposes counter-response.
Broker tracking: coordinate with both attorneys on practical scope of demands; don't push for specific outcomes; recognize that inspection-response negotiation is a legal process, not a brokerage process.
Day 5 — Attorney review window closes
Either parties have agreed on modifications and the contract is binding, or one side has declared the contract null and void. Earnest money is returned in the latter case.
Broker tracking: confirm in writing whether contract is binding or terminated; if terminated, confirm earnest money return mechanics with both attorneys; document everything.
Days 6-10 — Inspection contingency deadline
If attorney review concluded with binding contract but inspection contingency remains active (common in 5-10 day inspection windows), buyer can still terminate based on findings or invoke other inspection-related contract rights.
Broker tracking: calendar inspection contingency deadline; coordinate with attorneys on whether contingency will be waived, extended, or invoked.
What to escalate to the attorney immediately
Anything legal — modification language, IDFPR concerns, contract interpretation, dispute escalation. The broker's reflex should be 'let me put you in touch with your attorney' rather than 'let me explain.'
Anything that suggests the deal is at risk — an unreasonable inspection demand, an inflexible counter-proposal, a financing problem, a survey issue. The attorney is the right intervention point.
Anything where the broker is being asked to do attorney work — draft, advise, counter-propose. Decline politely; route to the attorney.
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