Pre-Closing Buyer Possession Agreement

The Seller, _________ ("Seller"), and the Buyer, _________ ("Buyer"), have signed a Real Estate Sales Agreement dated _________ (the "Contract") pertaining to the real estate commonly known as _________, Illinois, and any appliances, equipment and fixtures described therein (collectively, the "Property"). For good and sufficient consideration, the parties agree that Seller shall deliver possession of the Property to Buyer prior to the closing date which is described in the Contract (the "Closing Date"), on the following terms and conditions (the "Possession Agreement"):

1. Possession Date. Seller shall deliver and Buyer shall accept possession of the Property not later than _________ (A)(P).M. on _________[date] (the "Possession Date") in accordance with the terms and provisions contained herein.

2. Buyer's Occupancy. Buyer shall not use or allow the Property to be used for any purpose other than as a single family residence, occupied only by Buyer and Buyer's immediate family, and shall not allow the Property to be used for any illegal purpose. Notwithstanding anything contained in this Possession Agreement to the contrary, this Possession Agreement shall not be construed as creating the relationship of landlord and tenant.

3. Buyer's Occupancy Fee. Commencing on the Possession Date, Buyer shall pay to Seller an occupancy fee in the amount of $_____ per day for the period commencing on the Possession Date and continuing through and including the earlier to occur of (a) the actual date of closing and receipt by Seller of the net proceeds under the Contract, if the transaction closes, or (b) the day upon which Buyer vacates the Property, if the transaction fails to close. The occupancy fee shall be paid weekly in advance. Buyer shall be responsible for all utility charges (electricity, gas, telephone, water, sewer, trash disposal and cable television) which accrue during Buyer's occupancy of the Property.

4. Earnest Money as Security for Buyer's Obligations Under this Agreement. As of the Possession Date, Seller shall have a lien upon the earnest money deposit under the Contract (the "Earnest Money Deposit") which shall continue to be held by _________ (the "Escrowee"). The Earnest Money Deposit shall be held by the Escrowee in accordance with the terms of this Possession Agreement until all obligations of Buyer herein have been satisfied, including without limitation the closing of Buyer's purchase of the Property.

[NOTE: The Seller should require a sufficiently large Earnest Money Deposit from the Buyer in order to provide adequate security to the Seller if the Buyer fails to close on the Closing Date.]

5. Buyer's Inspection Prior to Possession Date. Buyer acknowledges that the Buyer has inspected the Property and finds that the Property, including the fixtures, appliances and equipment contained therein, are in the condition required under the provisions of the Contract, including representations, if any, made by the Seller. Buyer agrees that, after the date hereof, Seller shall have no obligations to perform any maintenance, repairs or replacements of or to the Property, except as otherwise set forth in this Possession Agreement.

[NOTE: If the Buyer has not have inspected the Property prior to the execution of this Possession Agreement, the parties may wish to substitute the following as paragraph 5:

5. Buyer's Inspection Prior to Possession Date. Buyer shall be entitled to inspect the Property within the forty-eight (48) hour period prior to the Possession Date in order to verify that the Property, including the fixtures, appliances and equipment contained therein, are in the condition required under the provisions of the Contract, including representations, if any, made by the Seller. If Buyer reasonably determines that the Property has been damaged or otherwise is not in the condition required under the provisions of the Contract, Buyer shall deliver written notice of same to Seller prior to the Possession Date. Unless and until Seller and Buyer agree in writing as to repairs or replacements, if any, that Seller shall be required to make, Buyer shall not be entitled to take possession of the Property. Seller's responsibility for making any such repairs or replacements shall be in accordance with the terms of the Contract. Buyer agrees that, after Buyer takes possession of the Property, Seller shall have no obligations to perform any maintenance, repairs or replacements of or to the Property, except as otherwise determined in writing between Seller and Buyer.]

6. Buyer's Release of Certain Claims. Buyer waives, disclaims and releases any claims for reimbursement for any work and labor done or caused to be done on the Property by Buyer, or materials placed on or incorporated into the Property by Buyer. Buyer shall let no contracts for maintenance, repairs, replacements, decorating or other improvements on the Property and shall make no structural changes in the Property without prior written approval of Seller. Buyer agrees to defend, indemnify and hold Seller harmless from and against any losses in connection with mechanic's lien claims which may be made by reason of any claim for maintenance, repairs, replacements, decorating or other improvements done by or for Buyer, including but not limited to, Seller's reasonable attorneys' fees and expenses in connection therewith.

7. Approval of Seller's Compliance with Certain Requirements and Buyer's Release of Certain Pre-Closing Contingencies. Buyer waives, disclaims and releases the following contingencies which are contained in the Contract: [inspection], [financing], [sale of current residence] [and any and all other contingencies in the Contract of whatever kind or nature]. Buyer acknowledges and agrees that (a) Buyer has received and approved the following pre-closing documents: [title insurance commitment], [survey], [condominium documents required by 765 ILCS 605/22.1] and _________, and (b) Buyer's obligation under the Contract to purchase the Property is no longer subject to any contingencies other than _________.

8. Buyer's Indemnity of Seller. Buyer agrees to defend, indemnify and hold Seller harmless from and against any and all damages, losses, claims, demands, liabilities, costs and expenses of any kind or nature including, but not limited to, claims for bodily injury, death, and property damage, arising out of or in connection with Buyer's possession, use or occupancy of the Property from and after the Possession Date.

9. Buyer's Assumption of Risk of Loss from Fire and Other Casualty and Buyer's Insurance Policy. The risk of loss of improvements on the Property shall pass to Buyer as of the Possession Date, and Buyer shall not thereafter have the option to terminate the Contract if the improvements on the Property shall be destroyed or materially damaged by fire or other casualty. Prior to the Possession Date, Buyer shall provide and deliver to Seller an insurance policy covering personal liability (for bodily injury, including death) and property damage and covering the Property on a replacement cost basis for all risks from fire or other casualty, naming Seller and Buyer as insureds, and insuring them as to the Property as their interests may appear, and naming each of Seller' mortgagees as a mortgagee under the policy, together with a receipt showing the premium prepaid in full. Liability limits shall be not less than $300,000/$600,000 for bodily injury and $300,000 for property damage. The insurance company, form of policy and coverages must be in all respects reasonably satisfactory to Seller.

[NOTE: Complex insurance issues exist. Great caution must be exercised to obtain all needed insurance coverages. The Uniform Vendor and Purchaser Risk Act (765 ILCS 65/1) transfers the risk of loss to Buyer if a fire or other casualty occurs after Buyer has taken possession of the Property, unless the parties otherwise agree. Because a Seller-owner is not in possession, Seller's homeowners insurance may not cover Seller and does not cover the Buyer. Because Buyer is not the legal owner, Buyer's homeowners insurance may not cover the Buyer and will not cover the Seller or protect the Seller's mortgagee. Therefore, if Buyer is to purchase the insurance, Buyer's policy or policies must cover the interests of Seller, Seller's mortgagee (described specifically "as mortgagee") and Buyer, as their interest may appear. Seller, in order to protect Seller's interests, may wish to continue to maintain insurance through the Closing Date. If both Seller and Buyer buy insurance and these coverages overlap, a dispute may arise as to which policies apply, which party makes the claim against the insurance company, etc. If a condominium unit is involved, insurance coverages involve the association's policies and separate policies covering the inside of the unit.]

10. Buyer's Agreement To Vacate the Property. If (a) the sale of the Property is not closed on the Closing Date in accordance with the Contract, (b) Buyer materially defaults under the Contract or this Possession Agreement, or (c) the Contract is terminated in accordance with its terms or upon mutual written agreement between the parties, then Seller, at its option, may terminate Buyer's right to possession of the Property by sending or delivering of written notice to Buyer requesting that Buyer vacate the Property as of the date stated in such notice ("Vacate Date"). Buyer agrees (i) to vacate the Property on or before the Vacate Date, (ii) to leave the Property in the same condition as existed on the Possession Date (reasonable wear excepted), and (iii) to pay any and all reasonable attorney's fees, court costs and other expenses incurred by Seller in any suit to evict Buyer from the Property. Such written notice shall be sent or delivered to Buyer not less than five (5) days prior to the Vacate Date stated in such notice for Buyer's vacation of the Property. Buyer shall not be entitled to retain possession of the Property after the Vacate Date, and Buyer's subsequent use, occupancy and possession of the Property after such date shall be deemed to be as a trespasser. If Buyer fails to vacate the Property and deliver the keys to Seller or the Escrowee for delivery to Seller on or before 5:00 P.M. on the Vacate Date, Seller, without giving any further notice to Buyer, shall have the right to file a forcible entry and detainer law suit to recover possession of the Property. Buyer consents and submits to the jurisdiction of the Circuit Court of the County in which the Property is located.

[NOTE: If the Buyer fails to purchase the Property on the Closing Date and requests an extension of the date of closing, the Seller may elect not to serve the notice to vacate on the Buyer, but instead may require (as the Seller's resulting damages) either the payment by the Buyer of a larger per diem "occupancy fee" for the period prior to closing or the payment by the Buyer of interest on the Seller's anticipated "net proceeds".]

11. Attorneys' Fees and Protection of Escrow Funds. If a suit to construe or enforce the provisions of this Possession Agreement is filed, (i) the prevailing party shall be entitled to recover from the other party the prevailing party's court costs and reasonable attorneys' fees and other costs and expenses incurred in the enforcement of this Possession Agreement, (ii) the other party shall pay the attorneys fees and other costs and expenses incurred by the Escrowee pursuant to the provisions of this Possession Agreement, and (iii) the court in which the suit is pending shall have authority to enter judgment for such sums. The party at fault shall restore to the Escrow Deposit any amount incurred by the Escrowee acting under and pursuant to the provisions of this Possession Agreement, including, but not limited to, cost of filing, intervening or participating in any law suit relating the Escrow Deposit or Escrowee's obligations under this Possession Agreement.

12. Disposition of Earnest Money Deposit in Event of a Claim of Default. If either party claims that the other party has defaulted under this Possession Agreement, the Escrowee shall continue to hold the Earnest Money Deposit until there is an Event of Distribution (as defined in paragraph 12.A.) or the Escrowee files an interpleader suit as authorized in paragraph 12.B. and deposits the funds with the Clerk of the Court.

13. Miscellaneous. This Possession Agreement shall become effective when executed by Seller, Buyer and Escrowee and shall survive the closing and not be merged in the deed.

Seller: _________

Buyer: _________

In consideration of the indemnity protections and other provisions of the Possession Agreement relating to the Earnest Money Deposit and Escrowee, the undersigned as Escrowee hereby agrees to hold, disburse and deal with the Earnest Money Deposit in the manner described in the Possession Agreement.

Dated: _________

Escrowee: _________