How FIRPTA Can Tie Up Your Real Estate Sale Proceeds For many sellers, closing is the moment when months of planning finally turn into net proceeds. But for some sellers, a large portion of those proceeds may be withheld at closing under a federal rule known as FIRPTA. If that happens late in the transaction, it can come as a major shock. In plain English, FIRPTA can cause 10% to 15% of the sale price to be withheld and sent to the IRS, even before the seller’s final tax liability is determined. In some cases, that money may not come back until after the seller files a U.S. tax return.…
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Why Should You Hire An Attorney To Buy or Sell Your Home?
Answer: Because you do not want to risk flushing your money down the toilet. You have probably heard people say that you don’t really need a lawyer for a real estate transaction. Or you may be under the impression that real estate closings are easy for lawyers, and your real estate lawyer really isn’t doing much other than collecting a check at closing. To be honest, I hope and pray that your lawyer does not have much to do, because a smooth transaction makes the herculean task of moving a lot less stressful. Unfortunately, most real estate transactions will involve some unexpected hiccups, and that’s when having an…
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The Tax Bills Are Here!
The 2015 Second installment real estate tax bills for Cook County have been released as of 10:00am this morning. For Chicago residents, this bill has been highly anticipated (dreaded) since the 2015 re-assessments were announced. As I wrote earlier this year, may of you expect to get dinged pretty hard. To see how bad the damage is, head over to the Cook County Treasurer’s website by clicking here. Once there, click “continue” and enter your PIN. If you do not know your PIN, head over to the Cook County Assessor’s website here. Click “Dont know your PIN?” and enter your address. LIFE PRO TIP!!! If you are an owner occupant, and…
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City closes $500M redevelopment deal for Old Main Post Office
“This project will create thousands of jobs and generate new economic opportunities for residents in our neighborhoods,” Mayor Rahm Emanuel said. Source: City closes $500M redevelopment deal for Old Main Post Office Hat tip to the Sun Times for this article on the Old Post Office. This is exciting news for the South and West Loop neighborhoods!
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Closing Costs Part 2 – Title Charges
In the second installment of my series on closing costs, I will tackle title charges. Generally speaking, when you buy or sell a home, the closing of the transaction takes place at a title company. The title company has two main roles: 1. escrowee and 2. issuing title insurance. As escrowee, the title company receives funds from the buyer and lender and disburses the money at the end of the closing based on the parties instructions. Title insurance insures the buyer’s clear title to the property. Title companies don’t work for free, so there are some costs associated with the services they provide. Escrow/Settlement Fee This fee is for the title…
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Estimate Your Closing Costs – Part 1
If you have ever bought or sold a home, you know that there are all sorts of charges that you incur in addition to the purchase price, which are known to most as “closing costs.” We all know about them, but estimating the final number can be elusive if you are not familiar with the process. In the next four emails, I am going to shed some light on calculating the closing costs, so that you can better understand what the home is really going to cost you as a buyer or what you can expect to walk away with as a seller. Real Estate Taxes The real estate tax…
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The Five Questions To Ask Your Real Estate Attorney First
How much do you charge? This seems like a no-brainer, but I am surprised at how often people do not ask me during the introduction phone call. There is no reason to be shy! No one expects the attorney to work for free, but you need to know that the cost is within your budget. Is it a flat fee or hourly? Hint: it should be a flat fee for a standard real estate buy or sell. Does the attorney front costs to be reimbursed at the closing, or do you have to pay as you go? Do not leave the cost as a mystery to be solved at the…
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How To Hire A Real Estate Lawyer
My friends at avvo.com wrote a nice little guide for those of you who are in the market for a real estate lawyer. Check out the guide here. It’s definitely worth checking out if you want an anxiety free way to get some questions answered. Another anxiety free way to get your real estate law questions answered is to email me at patrick@loftus-law.com or call me at 773-632-8330. Telephone consultations are done free of charge! See what my clients have to say about me!
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Emanuel gets the go-ahead to seize Old Main Post Office
Things are getting interesting over at the Old Post Office again. As I wrote back on February 29, the City is moving to take control of the property to sell it to someone who will develop it. Mayor Emanuel’s plan received approval from the Community Development Commission. The City will now seek bids from developers, which are due by June 8, 2016. Meanwhile, the current owner, Bill Davies, claims that he is on the verge of sealing a deal with “a New York investor with ‘impeccable status and stature‘” to redevelop the property, and that the Mayor’s actions will jeopardize that plan. Evidently, Emanuel is not interested in promises made…
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Chicago Old Main Post Office Is Up For Grabs
Nearly every Chicagoan has experienced the oddity of driving straight through the massive Old Main Post Office taking the Ike downtown. In 1996, the Postal Service moved to a new building across the street, leaving the old building vacant. For the past 20 years, not much has happened there other than the occasional fire from commuter train exhaust and Batman. The current owner, Bill Davies, bought the building from the Postal Service in 2009. Since that time, Mr. Davies has unveiled several proposals for the site (see here, here and here); however, not a single hammer has swung at the property. Last week, Rahm Emanuel announced that the City plans…
