Blog

7.0 VS. CAR

 






7.0 VS. CAR: WHAT IS THE DIFFERENCE?
UNDERSTANDING THE DIFFERENCE MATTERS

You know there’s two big real estate contracts used in the Chicago area, but do you know the big differences between them? While The Chicago Association of Realtors (CAR) publishes several different contracts, they’re similar enough to each other that we can talk about them collectively. On the other hand, the Multi-Board Residential Real Estate Contract 7.0 (the 7.0 Contract) is a collaborative effort of approximately 20 different lawyer’s and realtor’s organizations across northern Illinois. There are some general differences between them.





CAR CONTRACTS 


7.0 CONTRACT

Uncommon outside the City of Chicago

Used across the region

Typically short - usually 4 pages 

13 pages

Relies on separate
addendums for many common
optional provisions

Includes the most common optional
provisions in the body of the
contract (e.g. sale  contingency,
post-closing possession, as-is)

Slightly seller-friendly

Noticeably buyer-friendly



                                 




             

 PROVISIONS 

      

CAR CONTRACTS 

7.0 CONTRACT

FINANCING

Allows for seller financing; allows any
 written commitment to satisfy the
 mortgage contingency 

No provision for seller financing;
 requires what’s effectively a clear-
to-close commitment to satisfy the
 mortgage contingency

ATTORNEY REVIEW

Doesn’t allow for termination of
 contract until one side has proposed
 modifications and the other has
 declined at least one

Either party may terminate for any
 reason (except purchase price), even
 before sending an AR letter

INSPECTION

Doesn’t allow for termination of
 contract until one side has requested
 repairs and the other has declined
at least one

If the buyer doesn’t like the
condition of the property, they can
 terminate immediately without
 requesting repairs

TITLE DEFECTS

Seller has 30 days after receipt of the 
commitment to fix title defects which
can delay closing

Seller must remedy before
closing date

SPECIAL ASSESSMENTS

Requires notice to buyer

Requires notice to buyer and provides
 a termination right if no agreement
 can be reached

FLOOD INSURANCE

If required, buyer must pay

If required, buyer may terminate

REPRESENTATIONS

Minimal

Pins seller down at the outset on
 several issues and holds them
 responsible for their answers





  • Illinois State Bar Association
  • Chicago Realtors
  • The Chicago Bar Association