Contracts
Under Illinois law, which party typically pays for the owner's title insurance policy in a residential transaction?
AThe buyer always pays
BThe seller always pays
CThe custom varies by location in Illinois; in Chicago the buyer typically pays, while in other areas the seller commonly pays✓ Correct
DIDFPR mandates that costs be split equally
Explanation
In Illinois, who pays for title insurance is negotiable, but varies by local custom. In the Chicago area, buyers typically pay for the owner's title insurance policy.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Math Concepts
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