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Attorney Modification Clauses & Your Real Estate Sale Contract

Attorney Modification Clauses & Your Real Estate Sale Contract

Attorney Modification Clauses

They let you cool off.

Has it been 5 days Already?

 

Relax.  You probably blew the deadline & were none the wiser.

Chances are that you signed a real estate purchase contract and are having second thoughts.

Sometimes realtors like to confuse you and say you should put in an offer – well, that means a contract.

So see what Peoria Real Estate attorney, Thomas Howard has to say about a clause in the contract that allows for attonreys to disapprove.

You can call Attorney Thomas Howard at (309) 740-4033.

Questions?

Your case needs strategy – for the right case, we give a free one hour session. Get yours today.

Public Policy Behind Attorney Modification

Sometimes people fall in love at first sight, but not just with people. A person shopping for a house may fall in love with a home, and put in an offer, but only to later realize she or he has been entered into a binding contract. 

Let’s run through the fundamentals of a contract in the context of a home sale & how an “attorney modification clause” can help you get out of the contract with some help.

A contract had 3 basic elements

Attorney Modification Disapprove

He Does Not Approve

  • Offer & Acceptance: When you put in that offer on the house, you actual began to form half of the deal.  If the seller accepts your offer on the house, you’re hooked.  So when shopping for a home and making an offer, lower your expectations – and increase the chance of your rejection so you can think it over better.
  • Consideration: This is money.  You offered to pay ‘x’ dollars for that house – if we assume that you offered to pay the statistical average price for the home – $199,200 is what you are going to pay because according to Google that pointed to a CNBC article claiming that is the median price for the home in the United States – believe it or not.
  • Meeting of the Minds: This is the most complex of the three basic contract elements.  It is where a lot of the disputes occur.  Some people think they are buying apples, when instead they are buying oranges – and they never would have bought an orange had they known.  Mistakes of fact happen fairly often.

Attorney Modification & Public Policy

Most people that buy a house and get in trouble are lacking in home buying experience.  So to protect these first-time and novice homebuyers, public policy has worked into many of the forms of residential sales contracts an Attorney Modification clause that gives each party the right to have their attorney review the contract.

If your attorney does not approve of the contract within a very limited period of time, in Peoria Illinois it is five days, then it can be canceled.  Often the price cannot change because the clause itself states the rights.

Your contracts mean what they say

A court of law does not exist to make the deal for you.  That is between the private parties that enter into lawful, legally binding contracts.  

Why one of the most American things you can do is make a deal.  But be careful when getting into them – because a deal rushed into may be a costly error.

In real estate law, there is a saying.  “There are no small problems when it comes to real estate.”  So be careful, and have your attorney consult with you immediately after you signed the deal to confirm you want the deal before the attorney modification period expires. 

If you have a contract dispute, call our offices at (309) 740-4033.

 

A commercial loan workout attorney with over ten years experence – Thomas Howard answers your questions in the video below.

Thomas Howard was on the ball and got things done. Easy to work with, communicates very well, and I would recommend him anytime.

R. Martindale

Illinois Hemp Lawyer

Illinois Hemp Lawyer

  Our Illinois Hemp Lawyers have written extensively on the first new agricultural commodity of the 21st century - hemp - over on our sister website focusing on our cannabis law practice - www.CannabisIndustryLawyer.com. For answers on the confusing term "agent" ...

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What to Know about Good Faith or Bad Faith – an illustrated easy guide

What to Know about Good Faith or Bad Faith – an illustrated easy guide

Good Faith Is Business

What Does Good Faith Mean?

 

Attorney Thomas Howard has helped clients for years enforce their rights under contracts.  And each and everyone of those contracts had something in common – but it was not a term written into any of the contracts.

Every contract contains an implied promise.  The implied covenant of good faith and fair dealing is what makes business work.  It requires people to deal with one another fairly.  Businesses and people can trust each other to enter into contracts because good faith requires them to help them get the benefit of their bargain.

Thomas Howard has helped countless businesses and people with their contracts, below he explains good faith in an easy to understand and Illustrated way.   You can call him at (309) 740-4033.

Questions?

Your case needs strategy – for the right case, we give a free one hour session. Get yours today.

The Duty of Good Faith & Fair Dealings

Any party to a contract has an unwritten duty to help the other party obtain the benefit of their end of the bargain.  A benefit of the bargain is what you get out of the deal.  Let’s take a quick second to explain the very basics of what forms a contract.

A contract had 3 basic elements

Contract Basics Offer Consideration Acceptance

  • Offer & Acceptance: This is what you buy. Pizza, coffee, plumbing, Netflix, or even legal services.  The offer is what the seller in the contract brings to the table.  It brings the buyer in the door.  The Buyer is accepting the offer.
  • Consideration: This is often money.  In the picture, the coffee is $3.50.  The consideration is two-way, however.  The offer is a consideration as well.  The pizza is half the deal, so is the NetFlix subscription.  Very often the consideration is goods or services in exchange for payment of money.
  • Meeting of the Minds: This is the most complex of the three basic contract elements, and where Good Faith resides.  The intent of the parties to the contact is important. Both intended to get what is called the “benefit of their bargain.” This means you do not get tricked into the deal. You are not making a mistake regarding the terms of the contract.

Meeting of the Minds and Good Faith

Would you enter into a deal to buy a house if you knew every time it rains the basement floods with 3 feet of water?  Perhaps you would if you negotiate a discount for installing a dewatering system.

But would you buy the house with the leaky basement if you did not know about it?  That’s where people get into trouble because they feel as if they are tricked. 

They lacked the requisite meeting of the minds on the deal because if the buyer knew about the basement flooding, he never would have purchased the house.  That is a lack of meeting of the minds that gets to the heart of contract formation.

What if the seller knows about the water in the basement, and lies on the disclosures and says that to the best of his knowledge there is no water in the basement? 

That is fraud, a/k/a bad faith.  The Seller lying about the leaky basement injured the Buyer.  The Buyer can sue the seller for fraud and recover the damages.  The damages would be the cost of repairing the leaky basement.

Interference in the Contract – Bad Faith

The “duty of good faith and fair dealing requires the party vested with contractual discretion not to injure other parties to the contract by action or omission and not to act inconsistently with other parties’ rights.” Id, citing Brzozowski v. Northern Trust Co., 248 Ill.App.3d 95 (1993).

Sometimes contracts have certain rights that may spring into effect.  These are called contingencies. For example, take your employer’s stock price.

Imagine your job has a contract to that will pay you a bonus if you do a great job and the stock price rises above $100.  If that happens, your employer will pay you one-million dollars.

one million dollars

You have 3 months to get the stock price above $100, and you’re doing amazing!  But your company does not want to pay you. They notice that your contract requires their help. 

Instead of helping you maximize profits, the company sits back and waits and takes no action. If the company does not do their part, you will fail and not get your bonus.

The duty of good faith and fair dealing requires the company to help you hit your target when they must cooperate to do so. The company cannot interfere, not help, and put you in a position to fail, then say you did not earn your bonus. 

That is performing the contract opportunistically to deprive you of your one million dollars.

Good Faith Case Law Round up

  1. A party cannot take advantage of a condition precedent the performance of which he has helped render impossible. Barrows v. Maco, Inc., 94 Ill.App.3d 959, 966 (1st 1981).
  2. Bad faith, or opportunistic advantage-taking, is the lack of cooperation depriving the other contracting party of his reasonable expectation. Hentze v. Unverfehrt, 237 Ill. App.3d 606,(1992).
  3. A party that participated in the hinderance of the condition, and they may not now claim the benefit of the failure of the required event. Yale Development Co. v. Oak Park Trust & Savings Bank, 26 Ill.App.3d 1015 (2nd 1975).

Good Faith Means You Do What You Promised

To conclude, good faith helps our economy have trust in the trillions of dollars of contracts that we depend on in our daily lives. 

As the American Bar Association said in their blog,

The theory behind this principle is that a party cannot interfere with or fail to cooperate with your performance and then complain about it.

From the pension funds, to pizza orders, and everything in between, all depend on good faith and fair dealing in their contracts.

So if you ever get the advice to take a dive, or to not perform your end of the bargain – you may have to explain to the person that you have a duty of good faith and fair dealing to live up to your end of the bargain.

You may also want to avoid doing business with them. 

If you have a contract dispute, call our offices at (309) 740-4033.

 

A commercial loan workout attorney with over ten years experence – Thomas Howard answers your questions in the video below.

Thomas Howard was on the ball and got things done. Easy to work with, communicates very well, and I would recommend him anytime.

R. Martindale

Illinois Hemp Lawyer

Illinois Hemp Lawyer

  Our Illinois Hemp Lawyers have written extensively on the first new agricultural commodity of the 21st century - hemp - over on our sister website focusing on our cannabis law practice - www.CannabisIndustryLawyer.com. For answers on the confusing term "agent" ...

Need A Workout Lawyer

Thomas Howard has completed dozens of loan workouts and helped financial institutions recover the collateral base.  Call (309) 740-4033

REACH US BY EMAIL

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Attorneys in Peoria Illinois

Attorneys in Peoria Illinois

(If you were directed from completing a form, Thank you.  Tom Will be in touch soon, but here’s a whole page to help you in finding your next attorneys in Peoria Illinois )

Attorneys in Peoria Illinois come in all different shapes and sizes – listen to Tom Howard, an attoreny in Peoria Illinois himself explain what you need to watch out for when you hire your next attorney.

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Attorneys in Peoria Illinois

What Peoria Attorney do you need?

The attorney you need depends on what goals you have. 

All you need to do is scroll through to find the right lawyer for your case.

Family Lawyers in Peoria Illinois

Many families require a lawyer at some point in their lives.  For example, a divorce, adoption, many things can happen to you that requires a lawyer to help you out.

Here’s the most common types of legal services that family attorneys in Peoria Illinois provide:

  1. divorce
  2. child custody
  3. adoption
  4. protective orders (OP), or called restraining orders
  5. alimony

I work with several family lawyers in my law practice at Peoria Illinois.  The person that I trust most with family law issues is a partner at the law firm that I work with.

You can contact lawyer, Mike Fritz, from his website for family lawyers in Peoria Illinois.

Criminal lawyers in Peoria Illinois

Not all criminal lawyers in Peoria Illinois can be hired.  Some are employees of the State of Illinois and work in the State’s Attorney’s office prosecuting criminals.

Criminal lawyers that you hire always for work the defense. Criminal defense attorneys have to fight hard to be able to help the accused have their day in court and get justice.

If you are arrested, you may need to hire a criminal defense attorney. Attorneys in Peoria Illinois help people with the following services:

  • Driving while intoxicated (DWI)
  • Felonies
  • Federal crimes
  • drug crimes (possession or distribution)
  • assault & battery
  • Burglary
  • Certain Traffic offenses
  • weapon offenses
  • domestic violence

In Peoria, Illinois, the criminal defense attorney that I turn to and trust the most is Jeff Hall.  You can contact a great criminal lawyer in peoria Illinois from his website today.

Personal Injury Lawyers in Peoria Illinois

When you’re hurt in a car accident, or injured from something that is not your fault – the law calls it a tort.  The person responsible for hurting you is called a tortfeasor – they often get sued.  But because of insurance laws – the deep pockets in most personal injury cases – many times the insurance company gets sued to honor polices in place to protect against such things

Personal injury lawyers in Peoria Illinois help innocent people get compensation for their pain and suffering.  Often these cases are taken on a contingency, which is not common in most attorney client relationships because most lawyers charge by the hour.  The possibility of a large recover, however, means that personal injury attorneys in peoria illinois are willing to work on a contingency basis and typically take one-third of the total recovery.

Here are the types of personal injury cases that attorneys in Peoria, Illinois, often take:

  1. car accidents
  2. DUI accidents
  3.  motorcycle accidents
  4. slip and fall injuries
  5. boating accidents
  6. distracted driving accidnts
  7. wrongful death
  8. brain injuries
  9. medical malpractice claims

The first lawyer that I would turn to for a personal injury legal question in Peoria, Illinois, is Fadi Rustom.

Workers’ Comp Lawyers in Peoria Illinois

When you’re injured at work in Illinois, the business is required to have insurance policies to protect its employees and provide them compensation – perhaps even for life – as a result of injuries that happen during the course of employment.

Many law offices in Peoria Illinois exclusively specialize in workers’ compensation cases because there is an entire statute in Illinois dedicated to processing the cases.  Workers’ comp even has its own courts so please hire someone that concentrates in workers’ comp if you are injured on the job.

Typical workers’ comp cases include specific injuries found in the Worker’s Compensation Act of Illinois, including:

  1. accidental death,
  2. loss of a limb
  3. carpal tunnel syndrome
  4. hearing loss from explosions
  5. disability arising from injury

For a worker’s compensation lawyer in Peoria, Illinois – I turn to the Law Offices of Pat Jennetten.

Immigration lawyers in Peoria Illinois

Immigration lawyers help people of the world navigate the complex legal system administered by the United States Citizenship and Immigration Services (USCIS). The process at its core can be quite political and very confusing.

Finding a good immigration lawyer is difficult but groups like the America immigration lawyers Association (AILA) helps its members better serve their clients with tons of resources.

Some of the various legal issues that immigration lawyers in Peoria Illinois navigate are:

  1. adjustment of legal status (i-485) common for family law issues.
  2. H-1B work visas (form i-129).
  3. L-1 work visas (also from i-129).
  4. Permanent residence status – aka  Green Cards – or the PERM process
  5. variety of issues related to Trump Administration

For an immigration lawyer in Peoria, you can contact me, Tom Howard, through my immigration website..

Business lawyers in Peoria Illinois

ANY business lawyer should know that lawyers are an expense and not a profit center. Good business attorneys in Peoria Illinois will help you weigh the costs against the benefits of the legal service you need.

Business may have a general counsel to help guide the company, but that is usually a corporate law position helping with operation issues.  But business law can encompass the following areas:

  • employment legal issues: this can be any company policy, from maternity leave to an employee handbook. Employment law is an a practice area unto itself and discussed more below.
  • contract issues: All businesses are contracts.  Contracts form business. Contracts are how businesses survive, or die in the case of bankruptcy. Contracts can be as simple as paying a dollar for a can of soda – to as complicated as having numerous ambiguous definitions of option contingent on certain things that may never happen.
  • regulatory issues facing businesses:  Some businesses face little regulatory hurdles from the government, like the herbal supplement industry – while others may have lots of environmental regulations to comply with like mining and certain industries.

As you can see, business law has many different subparts.  In Peoria Illinois, if I need a business lawyer, well, I often ask myself what I would do.

 

Thomas Howard

Thomas Howard

Litigation Attorney

A Rising Star and Emerging Lawyer, which only 2% of all attorneys receive. Practicing in contract litigation with a concentration on business issues.

peoria contract lawyer

Thomas Howard was on the ball and got things done. Easy to work with, communicates very well, and I would recommend him anytime. R. Martindale

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Working with Tom Howard was great. He helped us navigate a real estate contract, and was incredibly knowledgeable and helpful! N. Pierson

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Real Estate Lawyers in Peoria Illinois

A home is often the largest investments people make in their lives. They quickly pay 6% of the gross price to a realtor, but totally ignore a lawyer.

A lawyer works by the hour and has a fiduciary obligation to help you acheive your legal rights – while the realtor also has a duty but only gets paid a success fee – or commission.

Real estate lawyers help people with their real estate deals to protect them from buying a problem, or to enforce the contact against a buyer that gets cold-feet without just cause.

Real estate attorneys in Peoria Illinois also help people with land use and zoning problems. Not only do fences make good neighbors, but knowing if that fence is on the right property line helps a lot as well.

We turn to the attorneys at Hall, Rustom and Fritz, where I am Of Counsel and help people and businesses with their real estate legal issues in Peoria, Illinois.

Litigation attorneys in Peoria Illinois

If you’re no stranger to litigation, then you have come across lawyers that litigate.  Often times litigators are known for their complete lack of agreeableness and generally adversarial character.

Some common phrases used each and every day include:

  • let the record reflect,
  • isn’t it true that…
  • objection
  • if you could please direct your attention to…
  • Do you recall…
  • I’m not using this for the truth of the matter asserted, just for their present mental impression
  • Motivation is always at issue

Litigators, while able to be jerks, help people fight for their rights in court – perhaps that explains their gruff and confrontational personality types. They should be avoided for business deals, but used to take seemingly simple issues more complicated and bloated that you can believe.

If you are being sued, or have a case, please consider our blog post about what type of lawyer you need to hire.

Contract attorneys in Peoria Illinois

Contracts are everywhere.  All business have contract.  Trillions of dollars in commerce is being done by contracts.

Most people NEVER read their contracts – they find them too complex and confusing.  Unfortunately, not reading the contract is no defense.

Contracts are formed when only 3 things come together:

  1. Offer
  2. consideration
  3. acceptance

An offer is something that is for sale.  You can buy that pizza for $9.99.  That’s the offer, pizza.

The consideration is the amount of money you pay – the $9.99.  But here’s a pro-tip: anything can be a consideration.  Today, the vast majority of contracts have a monetary consideration.

People do not trade and barter like they used to do hundreds of years ago.  Now they basically always use money.

Finally, acceptance is taking the offer and tendering the consideration.  You take the pizza and leave the $9.99.

These three seemingly simple things form every single contract that has ever been written.

They can get much more complex than that.  If you have a Contract law issue – well, we can help.

 

If you have questions for a business lawyer, contact our office today for help resolving it with our complex commercial loan workout attorneys.

Call Our Peoria Lawyers

Call our experienced attorneys in Peoria with your legal issues today.

They’ve handled hundreds of real estate matters both in and out of courts in Illinois.

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316 SW Washington Street, Suite 1A
Peoria, Illinois 61602

Call: (309) 740-4033 || E-mail: tom@collateralbase.com