Commercial Real Estate Sales Contract in Illinois: An Overview

If you`re planning to buy or sell commercial real estate in Illinois, it`s essential to familiarize yourself with the state`s laws and regulations governing the process. One critical aspect of buying or selling commercial property is the sales contract. A sales contract outlines the terms and conditions of the transaction, including the purchase price, closing date, and any contingencies.

In this article, we`ll take a closer look at the key elements of commercial real estate sales contracts in Illinois.

Offer and Acceptance

The sales contract for commercial real estate in Illinois begins with an offer from the buyer. The offer outlines the terms and conditions that the buyer is willing to accept, including the price and any contingencies. The seller can accept the offer, reject it, or make a counteroffer.

If the seller accepts the offer, both parties enter into a legally binding agreement. The terms of the agreement must be in writing and signed by both parties.

Purchase Price

The purchase price is one of the most critical elements of a commercial real estate sales contract in Illinois. The contract should clearly state the purchase price, including:

– The total purchase price

– The amount of the down payment

– The balance due at closing

– The payment schedule if payments are made over time

– The interest rate and terms of any financing arrangements

Closing Date

The closing date is the date when the sale of the commercial property is finalized. The sales contract should include the closing date, which should be agreed upon by both parties. The contract should also include any contingencies that must be met before the closing date, such as the completion of any inspections or repairs.


Contingencies are conditions that must be met before the sale can proceed. For example, a contingency may require the buyer to obtain financing or for a professional inspection of the property. If the contingency is not met, the sale may be canceled.

The sales contract should clearly outline any contingencies that must be satisfied before the transaction can be completed.

Representations and Warranties

The sales contract should also include representations and warranties made by the seller. These are statements made by the seller about the property`s condition, such as the absence of any liens or encumbrances on the property.

The buyer relies on these representations and warranties when making the decision to purchase the property. If the seller makes any misrepresentations, the buyer may have grounds for legal action.


Commercial real estate sales contracts in Illinois can be complex and nuanced. It`s essential to work with an experienced real estate lawyer who can guide you through the process and ensure that all legal requirements are met.

By understanding the key elements of a sales contract, you can better protect your interests and avoid any potential legal issues down the road.