There are a wide variety of issues that can play a role in a real estate transaction. One factor that both buyers and sellers should be aware of is whether there are any easements that apply to a property. Since easements are considered encumbrances that affect an owner’s ability to use their property, they should be addressed during the home closing process, and the parties should be sure to understand their rights and whether any changes to these agreements will be necessary.

Types of Easements on Illinois Real Estate Property

An easement is an agreement that provides someone other than a property’s owner with the right to use a portion of the property. Easements may be affirmative, meaning that they grant a party the right to use a specific part of a property for specific purposes, or they may be negative, meaning that they prohibit a property from being used in certain ways. Affirmative easements may include agreements that allow neighbors to use shared driveways or the rights of utility companies to place or maintain items such as power lines, gas lines, or water mains. Negative easements may restrict a property owner from erecting structures on a part of a property that is environmentally protected or from making additions to a home that would block a neighbor’s view.

Express easements are agreements that are set down in writing, such as in the deed to a property, a court order, or a legal agreement signed by a property owner and other parties. Easements may also be created by implication or by necessity, such as when a property owner cannot access their property without using a road or driveway on a neighbor’s property.

Homeownership is a primary part of the American dream for many people. Those who are planning to buy a house will often put months or years of preparation into this process, including saving money for a down payment, building good credit, and meeting the requirements to obtain a mortgage. Unfortunately, the COVID-19 pandemic has forced many people to delay these plans, and the fluctuating real estate market has caused some to wonder whether now is a good time to buy a home at all. Those who have the means to commit to this type of large transaction may be able to take advantage of certain benefits in the current market, but they should also be aware of pandemic-related issues that could affect them.

Buying a Home During COVID-19

One advantage that potential homeowners can realize during the pandemic is a low interest rate. The Federal Reserve has lowered these rates to boost the economy, and this means that home buyers may be able to obtain more affordable mortgages than they could before. However, many mortgage lenders are currently hesitant to offer new loans, since job losses or other economic issues may cause unexpected problems that could affect a homeowner’s ability to make ongoing payments. Those who are preparing to buy a home may want to work on building their credit to ensure that they can qualify for a mortgage.

The process of buying a home has also changed somewhat due to concerns about infections. In many cases, the opportunities to make in-person visits to a potential new home may be limited, and buyers may need to rely on virtual visits and videoconferencing with real estate agents. These restrictions may also affect home inspections, and buyers may be concerned about their ability to identify defects in a home that need to be repaired or other issues that may need to be addressed. 

Residential real estate transactions can be very complex, and whether you are buying or selling a home, you will need to address a variety of legal issues and meet a number of requirements. As you prepare for your home closing, you may encounter obstacles that affect your ability to complete the transaction. One issue that may arise is the discovery of liens against a property, and these will need to be cleared before your closing date.

Understanding and Clearing Liens

A lien is an unpaid debt that is attached to a property. There are a variety of situations in which liens may exist, including:

• Mechanic’s liens - If a contractor or subcontractor was not fully paid for construction work done on a property, they may file this type of lien to recover the money they are owed.

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The coronavirus pandemic has had a massive impact on the economy of the United States, affecting both individuals and businesses. In many cases, job losses or requirements to close businesses or scale back operations have made it difficult or impossible for tenants to pay rent. This has put many landlords in a difficult position, especially since multiple states, including Illinois, have placed a moratorium on evictions. As landlords determine how they can recoup their investments in the property they own, they may be able to negotiate lease modifications with tenants. This can provide them with some protections and allow them to move forward with their business goals as the country continues to address the effects of COVID-19.

Rent Deferrals and Modifications to Lease Agreements

When tenants are struggling to pay rent, they may request concessions from a landlord that will decrease their financial obligations. These concessions may include the deferral of rent payments for a certain period of time or a temporary reduction in the amount to be paid. When negotiating a rent deferral, landlords will want to make sure both parties understand the amount of time that deferrals will last, how the deferred amount will be paid back, and whether interest will apply to the amount owed.

In return for making these types of concessions, landlords may make other modifications to a lease agreement, such as:

There are many reasons why you may wish to move to a new home. You may be pursuing job opportunities in a new area, you may need more space for your growing family, or you may simply be looking to make a fresh start in a new community. While moving can be exciting, the process of selling your home can sometimes be lengthy and complicated, and you will want to understand the factors that can affect your ability to complete this transaction. Home inspections and appraisals can often have a significant impact on the purchase price of your home and the closing costs you will be required to pay, so you will want to be sure to understand the best way to approach these events.

Appraisals Vs. Inspections

An appraisal will determine the market value of your home, while an inspection will address its condition and identify any issues that may need to be repaired or addressed. An appraisal will typically be scheduled by the buyer’s mortgage lender, and if the appraised value of the home is lower than the offer made by the buyer, the buyer may attempt to renegotiate the price, or they may back out of the sale if contingencies in the purchase contract allow them to do so. Steps sellers can take to ensure that their home is appraised properly include making improvements and fixes to minor issues and ensuring that the property is clean and well-maintained.

A home inspection will be performed by the buyer, and an inspector will look for any problems that need to be repaired or other issues that the buyer may want to have addressed before they move in. In many cases, buyers will request that sellers perform repairs, and if there are major problems, contingencies in the purchase contract may allow the buyer to back out of the sale. Some issues that sellers may need to address include: