Do I need a real estate attorney for a closing in Illinois?

Illinois law permits — but does not require — buyers and sellers to have independent legal representation at a real estate closing. Having your own attorney is one of the most cost-effective protections available: the attorney reviews the purchase contract, title commitment, closing statement, and all closing documents before you sign. Issues commonly identified at closing include undisclosed liens, survey problems, contract terms that don't reflect the parties' agreement, and closing cost errors.

What is a Transfer on Death Instrument (TODI) and should I use one?

A TODI designates who receives Illinois real estate at your death without going through probate. While it can be useful in limited circumstances, it has significant limitations: it does not designate anyone to settle the overall estate, does not address personal property, can create co-ownership disputes among multiple beneficiaries, and does not handle contingencies well. In many situations a revocable living trust provides better protection because someone is actually in charge of the entire estate.

Commercial and Residential Real Estate Services — Orland/Tinley Park and Chicago Southwest Suburbs

Real estate closing attorney and CPA serving Chicago and Orland Park Illinois

A real estate transaction involves legal documents, tax consequences, and financial analysis — often all at once. Most buyers and sellers engage a real estate agent and a closing attorney without realizing that the attorney’s review is limited to the legal documentation and that no one is analyzing the tax or investment implications of what they are signing.

At Lechner Law Office and The Lechner Group, Ltd., we provide the full picture. Paul Lechner is a licensed Illinois Attorney, Certified Public Accountant, and licensed REALTOR® — and acts as title agent for Advocus National Title Insurance Company. Whether you are buying a home, selling investment property, structuring a commercial acquisition, or planning how your real estate will transfer at death, we bring legal, tax, and financial analysis to every transaction.

We serve buyers, sellers, investors, and business owners in Orland Park, Tinley Park, Orland Hills, Frankfort, Mokena, New Lenox, Oak Forest, and throughout the Chicago southwest suburbs.

Ready to discuss your transaction? Call Paul Lechner, Esq., CPA at (708) 460-6686 or schedule a consultation online.

Real Estate Services

Residential Closings

We handle attorney-managed closings for buyers and sellers of residential property throughout the Chicago southwest suburbs. Services include title examination, deed preparation, review of the ALTA settlement statement, coordination with lenders and real estate agents, and representation at the closing table. Illinois law permits buyers and sellers to each engage their own attorney — having independent counsel is one of the most cost-effective protections available in a residential transaction.

Commercial Real Estate Transactions

Commercial real estate transactions involve more complex due diligence, more negotiated contract terms, and greater financial stakes than residential closings. We represent buyers, sellers, and investors in commercial acquisitions and dispositions, including office buildings, retail properties, multi-family investments, industrial facilities, and vacant land. Our CPA background allows us to analyze cap rates, depreciation schedules, and after-tax returns alongside the legal documentation.

Title Insurance Services

Acting as title agent for Advocus National Title Insurance Company, we provide residential and commercial title commitments and policies. Title insurance protects your ownership rights against claims arising from defects in the title that existed before you purchased the property — including undisclosed liens, fraudulent deeds, errors in the public record, and ownership disputes. Both lender’s and owner’s title policies are available; an owner’s policy is a one-time premium that protects your ownership interest for as long as you or your heirs hold the property.

Investment & Financial Analysis

Before committing capital to a real estate investment, you need to understand the economics — not just the asking price. We provide CPA-driven analysis for rental properties, leasing scenarios, and commercial acquisitions including cash flow projections, capitalization rate analysis, return on equity calculations, and tax impact modeling. For investors considering a sale or exchange, we model the after-tax proceeds under a direct sale versus a 1031 exchange to determine the optimal strategy.

Contract Negotiation & Review

The Illinois Residential Real Estate Sale Contract and commercial purchase agreements contain terms that have significant legal and financial consequences. We review and negotiate purchase agreements, letters of intent, leases, and related documents before you sign. Common issues we identify include inspection contingency language, financing contingency terms, closing cost allocations, seller disclosure obligations, and representations and warranties that may not reflect the parties’ actual intentions.

Estate Planning for Property Owners

How you hold title to real estate affects what happens to it at your death, how quickly your heirs can sell or transfer it, and whether they will owe capital gains tax on the appreciation. We help property owners coordinate real estate ownership with their estate plan — including titling property in a revocable living trust for probate avoidance, evaluating Transfer on Death Instruments (TODIs), and planning for basis step-up to minimize capital gains for heirs. See the TODI discussion below for important limitations of that approach.

1031 Like-Kind Exchanges

Investment property owners selling appreciated real estate can defer capital gains tax by reinvesting proceeds into a replacement property under IRC Section 1031. The exchange must be structured correctly from the outset — once you close on the sale without exchange documents in place, it is too late. We provide the legal documentation and tax analysis for forward, reverse, and build-to-suit exchanges. See our 1031 Exchange page for a complete discussion.

Entity Structure for Investors

Real estate investors who own multiple properties, or who want to protect personal assets from liability arising from their investment portfolio, should hold investment property through an appropriate legal entity. We advise on LLC formation for real estate investors, multi-entity structures that separate individual properties, and the tax implications of entity choice on depreciation, passive activity rules, and eventual sale or exchange.

Transfer on Death Instruments (TODIs): What You Need to Know

Illinois law permits property owners to use a Transfer on Death Instrument (TODI) to designate who receives real estate at death without going through probate. TODIs are sometimes marketed as a simple, inexpensive alternative to a revocable living trust. While a TODI can be appropriate in limited circumstances, it is not the right tool for many situations — and using one without understanding its limitations can create serious problems for your heirs.

No one is put in charge of settling the estate. A TODI transfers title to real estate directly to the named beneficiary, but it does not designate a person to gather and manage all estate assets, pay debts, file tax returns, and wind up the decedent’s affairs. There is no fund of cash for funeral and burial expenses, medical bills, or other administrative costs unless other arrangements exist.

Personal property is not addressed. A TODI covers only the specific real estate named in the instrument. It provides no mechanism for the disposition of motor vehicles, RVs, watercraft, furniture, personal effects, or other tangible property.

Multiple beneficiaries create ownership disputes. A TODI designating two or more children transfers title to all of them as tenants in common — with no one in charge. If the children disagree about whether to sell, how to maintain the property, or what price to accept, the dispute may end up in probate court anyway. One child can move in and refuse to sell or cooperate.

Predeceased beneficiary problems. If a TODI beneficiary dies before the owner, and the TODI was not updated, Illinois law may not provide a clear successor beneficiary — potentially requiring probate to determine who owns the property and provide marketable title.

Medicaid impact. If a TODI beneficiary is receiving Medicaid benefits at the time of the owner’s death, the automatic transfer of real estate to that beneficiary may affect their Medicaid eligibility, and proceeds from a subsequent sale of their interest may be required to reimburse the state for prior Medicaid expenditures.

Contingencies are handled poorly. Life is full of contingencies — beneficiaries predecease the owner, marriages end in divorce, circumstances change. A property owner who loses capacity may never be able to update a TODI to account for changed circumstances. A revocable living trust, by contrast, can include detailed contingency planning for any number of scenarios.

Minor beneficiaries inherit outright at 18. If a predeceased TODI beneficiary’s minor children become successor beneficiaries, a court-supervised guardianship will be required to manage their interest until they turn 18, at which point they receive their share outright — with no restrictions or guidance. A trust provides a far more structured and protective mechanism for leaving assets to minors or young adults.

In many situations, a revocable living trust or a traditional probate-based plan provides better protection — because someone is actually in charge. We help clients evaluate the alternatives and choose the approach that best fits their family and financial situation.

Related Services

1031 Like-Kind Exchange — defer capital gains on the sale of investment real estate
Estate Planning — coordinate real estate ownership with your will, trust, and beneficiary designations
Tax Planning — capital gains strategy, depreciation, and IRS matters for property owners
Corporate Law — entity structure for real estate investors
Real Estate Litigation — title disputes, breach of contract, and landlord-tenant matters

Schedule a consultation. Call Paul Lechner, Esq., CPA at (708) 460-6686 or book online. Serving Orland Park, Tinley Park, Frankfort, Mokena, New Lenox, Palos Heights, Oak Forest, and the Chicago southwest suburbs.