Contracts
What is a 'hold harmless' or 'indemnification' clause in an Illinois real estate contract?
AA clause holding the title company harmless for pre-existing defects
BA clause where one party agrees to protect the other from certain claims, liabilities, or losses related to specified matters✓ Correct
CA clause holding the earnest money in escrow during attorney review
DA provision allowing sellers to hold back a portion of the proceeds
Explanation
A hold harmless (or indemnification) clause obligates one party to protect the other from liability arising from specified events. In real estate, sellers may indemnify buyers against pre-closing claims, or buyers may hold sellers harmless for future construction defects. These clauses allocate risk between parties and are important in commercial transactions, renovation contracts, and situations with known potential liabilities.
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