Contracts
What is a 'personal property' versus 'real property' distinction in Illinois real estate contracts?
AAll items inside a home are personal property; only the structure and land are real property
BReal property includes land and permanently attached improvements; personal property (chattels) includes movable items; the contract must specify which items are included✓ Correct
CPersonal property automatically transfers with the real estate deed
DThe distinction only matters for tax purposes, not for real estate contracts
Explanation
Real property includes land and improvements permanently attached to it (buildings, built-in appliances, fixtures). Personal property consists of movable items (furniture, unattached appliances).
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Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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