Earnest Money for Palatine Buyers and Attorney Review

Writing an offer on a Palatine home? Two early steps can make or break your deal: earnest money and attorney review. If you are a first-time or move-up buyer, the timelines and rules can feel confusing. In this guide, you will learn how deposits are handled in Illinois, what attorney review means, how the inspection period fits in, typical amounts and deadlines in Palatine, and how to protect your money. Let’s dive in.

Earnest money basics

Earnest money is your good-faith deposit that shows the seller you are serious. It is not your full down payment. If you close, the deposit is applied to your down payment or closing costs. If you cancel within a valid contingency in the contract, your deposit is typically returned.

Your earnest money goes into a neutral escrow or trust account, not the seller’s personal account. The holder follows the contract instructions and releases the funds at closing or when the contract ends per its terms.

Who holds your deposit in Palatine

The purchase contract will name the escrow holder and the timeline for delivery. Common escrow holders in Palatine and across Cook County include:

• The listing broker’s trust account
• A title company or closing agent
• An attorney’s client trust account

Ask your agent who will hold the funds, how to deliver them, and get a written receipt.

When you pay and how much

Your contract controls the deadline. Many Palatine offers call for delivery of earnest money “immediately” or within 1 to 3 business days after acceptance. Follow the contract exactly to avoid technical default.

There is no fixed amount required by Illinois law. In the Palatine area, typical ranges include a few thousand dollars, often around 1 to 2 percent of the purchase price. You may also see flat amounts such as 2,000 to 5,000 dollars on standard offers, and 500 to 2,000 dollars on lower-price or token offers. Earnest money is negotiable and shaped by market conditions.

Attorney review in Illinois

Attorney review is a contract provision that gives you and the seller a set period to have attorneys review the signed agreement. It is not a statewide law, so it only applies if it is written into your contract.

When included, the attorney review period commonly runs 2 to 5 business days. During this time, your attorney may approve the contract, request changes, or disapprove it. If your attorney disapproves within the review period and the contract allows rescission, the contract can be voided and your earnest money should be returned.

Inspection period essentials

The inspection contingency gives you time to order professional inspections and decide how to proceed. The contract sets the timeline, which often ranges from a few days up to 10 to 15 days depending on the deal and market conditions.

Within that window, you can request repairs, concessions, or cancel per the contract if you are not satisfied. If you terminate within the inspection period under the terms of the contingency, your earnest money is generally refunded.

How attorney review and inspections work together

Attorney review and inspections are separate rights, and their clocks can run at the same time or in sequence. Your contract specifies when each period starts, such as from acceptance or from full execution.

If your attorney disapproves within the review period and the contract allows cancellation, the contract ends and the inspection clock should stop. If you are negotiating both inspection items and attorney changes, keep everything in writing and within deadlines.

Refund vs. forfeiture of earnest money

• Refunds: You typically receive your deposit back if you cancel under a valid contingency within the deadline, such as inspection, attorney approval where allowed, financing denial per the contract, or other stated contingencies.
• Forfeiture: If you default after removing or missing contingencies, many contracts allow the seller to keep the earnest money as liquidated damages. Read your contract carefully.
• Disputes: If both sides claim the money, the escrow holder may require a mutual written agreement or follow the dispute clause, which can include interpleader with a court.

Practical timeline for a Palatine purchase

• Day 0: Offer accepted.
  • Deliver earnest money as the contract requires, often within 1 to 3 business days. Request a receipt.
• Days 1 to 10: Inspection period begins per contract. Order inspections quickly and submit requests or cancellation on time.
• Days 2 to 5: Attorney review period when included. Attorney may approve, propose amendments, or disapprove.
• Days 21 to 30: Financing approval window is common, but your lender and loan type control this timing.
• First 2 to 3 weeks: Title work is produced and reviewed. You may raise title objections per the contract.
• Day 30 to 45: Typical closing window, depending on lender, title, and agreed timing.

These ranges are examples. Your signed contract controls, and market conditions can shorten or lengthen each step.

Wiring and fraud safeguards

Wire fraud targets real estate deposits. Protect your earnest money with simple steps:

• Confirm wiring instructions by calling a known, verified phone number for the escrow holder. Do not rely on email-only changes.
• Verify the escrow agent’s legal name and account in writing before sending funds.
• Use secure delivery methods and keep proof of transfer. Ask for a receipt immediately.
• If anything looks off, pause and call your agent and the escrow holder to confirm.

Smart buyer checklist

• Read your contract’s earnest money, attorney review, and inspection deadlines closely.
• Ask who will hold your deposit and how to deliver it. Get a receipt.
• Order inspections early and document all requests in writing.
• Coordinate with your attorney during the review window and track all responses.
• Keep all addenda and timelines organized. Confirm any extensions in writing.
• Verify wiring instructions by phone using a trusted number.

Local insight for Palatine buyers

Palatine is part of the northwest Cook County market, where norms shift with demand and inventory. In competitive moments, buyers may increase earnest money or shorten inspection and review windows to be more attractive. In calmer periods, smaller deposits and longer windows are more common.

If you want local, real-time guidance, we can share current norms from recent Palatine transactions and coordinate with a trusted attorney, inspector, and title company so your deadlines stay on track.

Ready to move with confidence?

We help Palatine buyers manage earnest money, attorney review, and inspections with clear timelines and strong communication. If you want a team that coordinates every step and protects your interests, reach out to The Kate Fanselow Group. Let’s talk about your next move.

FAQs

When is earnest money due in a Palatine offer?

• Your signed contract controls, but many local offers require delivery immediately or within 1 to 3 business days after acceptance.

Who holds earnest money in Cook County, IL?

• The listing broker, a title company, or an attorney typically holds funds in a trust or escrow account named in the contract.

Can I get my earnest money back after inspection in Illinois?

• If you cancel within the inspection contingency and follow the contract terms, you are generally entitled to a refund.

What does attorney review mean in an Illinois purchase?

• It is a contractual period, often 2 to 5 business days, for attorneys to approve the contract, request changes, or disapprove per the written clause.

What happens to my deposit if the seller cancels the sale?

• If the seller breaches the contract, you are generally entitled to a refund of your earnest money and may have other remedies per the contract.

How much earnest money should I offer in Palatine?

• Amounts vary by market conditions, but many buyers offer around 1 to 2 percent of the price or a few thousand dollars; it is negotiable.

How do I avoid wire fraud when sending earnest money?

• Call a verified phone number for the escrow holder to confirm instructions, never approve changes by email alone, and request a receipt after sending funds.