We live in a DIY world.
You can file your taxes, draft a will, and remodel a bathroom with the help of a few YouTube videos. So when it comes to real estate contracts, you might think, “How hard can it be?”
The answer: hard enough to land you in a lawsuit.
Know that I have a bias having spent months working on the drafts of the MultiBoard 7.0 and 8.0.
Real estate contracts are legal documents with long-term, high-stakes consequences. When buyers or sellers attempt to draft their own contracts—or even heavily modify a standard template—they open the door to risk, confusion, and potential litigation.
Here’s why writing your own real estate contract is a lawsuit waiting to happen.
1. You Don’t Know What You Don’t Know
Real estate contracts contain far more than just the purchase price and closing date.
From contingencies and disclosures to proration clauses and financing terms, each section serves a purpose, some of which only become clear after something goes wrong.
Without legal training, parties are likely to miss essential protections, use vague language, or unknowingly contradict state law. Furthermore, courts don’t give you a pass for being a well-meaning amateur.
2. Online Templates Are Not Customized for You
There are countless downloadable real estate contract templates online.
The problem? They’re designed for general use, not for your client’s specific property, jurisdiction, or transaction structure.
Illinois, for example, has very specific requirements regarding disclosures, deadlines, and financing language. If your DIY contract doesn’t comply, it might not be enforceable at all. Worse, it could leave your client legally responsible for something you didn’t intend, like repairs, taxes, or even title issues.
3. Vague Language Creates Expensive Disputes
One of the most common issues I see is poorly worded clauses.
A buyer thinks the appliances are included; the seller doesn’t. A seller believes a contingency expired; the buyer disagrees. When contracts are unclear, disputes are inevitable, and courts are the only place to resolve them.
Paying an attorney to write the contract correctly from the start is far more affordable than paying one to defend your client in a lawsuit.
4. Contingencies Can Make or Break a Deal
Financing, inspections, title clearance, and sale of a prior home—these are just a few of the contingencies that must be clearly and properly documented.
Missing one can derail a closing or expose your clients to significant losses. I’ve seen deals fall apart over improperly drafted contingencies, with one party walking away and the other left scrambling with no legal recourse.
5. You Could Lose Your Earnest Money or Worse
If a court determines that your client’s self-written contract is ambiguous or invalid, they may lose the earnest money, the property, or even face claims for damages. In real estate, mistakes are rarely cheap.
A real estate transaction is often the largest financial decision your clients will make. Would they write their own mortgage or conduct their own home inspection? No. Then they shouldn’t write their own contract.
A licensed attorney can identify risks, draft clean language, and protect your clients’ interests from day one. This is about peace-of-mind, and that’s worth more than any online template.
The Minchella & Associates Difference
With over 40 years of experience in Illinois real estate law, Erica Minchella has represented thousands of home sellers and buyers, landlords, and commercial and investment property
