- Official section
- National V and Illinois: Contract law and transaction practice
- Broker weight
- 19% of the national broker portion
- Expected scored items
- Contracts account for about 17 of 100 national items
Illinois exam glossary
Attorney review period
Attorney review is a deadline problem disguised as a legal vocabulary problem. Do not memorize five days and stop. Find the exact clause, the acceptance timestamp, the contract's business-day definition, the attorney's permitted action, the required recipient, and the event that makes notice effective. In Illinois, a familiar local practice never outranks the signed words.
Last updated: August 1, 2026
What does this exam area cover?
Short answer: An Illinois attorney review period exists because the parties put it in their contract, not because every home buyer receives an automatic statewide five-day cancellation right. The clause may let counsel approve, disapprove, or propose modifications within a measured period after acceptance. It also determines scope, notice, service, waiver, negotiation, and outcome. Published Illinois authority treats one common clause as a condition subsequent to an already formed contract. A broker should calendar the language actually signed, deliver documents promptly, preserve proof, avoid legal conclusions, and refer the parties to counsel.
This guide follows the PSI Illinois Candidate Information Booklet effective June 24, 2026, Patel v. McGrath and official Illinois court materials applying different attorney-review clauses, current 68 Ill. Adm. Code 1450.750 and 1450.775 effective July 7, 2025, 5 ILCS 175/5-120, and 740 ILCS 80/2, all checked through August 1, 2026. Review rights vary among residential, commercial, auction, new-construction, condominium, cooperative, foreclosure, probate, relocation, and custom contracts. The form, riders, local practice, later written agreement, and current counsel advice control a real transaction.
What is on the official outline?
- Topic
- Find the review clause
- What to know
- attorney review, attorney approval, approval as to form, disapproval, proposed modification, rider, addendum, auction terms, custom contract, and omission
- Best exam move
- Do not create a review right from local custom when the signed agreement does not contain one.
- Topic
- Classify the clause
- What to know
- condition subsequent, condition precedent, qualified acceptance, already formed contract, pre-signing review, post-acceptance review, scope, cancellation, and waiver
- Best exam move
- Use the actual wording and consequence instead of assuming every approval clause works identically.
- Topic
- Identify the trigger
- What to know
- Date of Acceptance, last signature, delivery of acceptance, effective date, contract receipt, attorney receipt, deposit, inspection, execution, and notice
- Best exam move
- Start the clock at the event named in the clause, not the event that seems most convenient.
- Topic
- Read the time unit
- What to know
- business day, calendar day, full day, weekend, legal holiday, deadline hour, local time, counting rule, extension, and expiration
- Best exam move
- Apply the contract's definition and count on a written calendar.
- Topic
- Confirm who may act
- What to know
- buyer attorney, seller attorney, party, authorized counsel, substitution, written authority, client instruction, broker, paralegal, recipient, and escrowee
- Best exam move
- A broker cannot borrow an attorney's contractual power or give legal disapproval for a client.
- Topic
- Separate approval
- What to know
- express approval, deemed approval, silence, waiver, approval as to form, unconditional approval, reserved issue, client consent, writing, and delivery
- Best exam move
- Determine whether silence approves the contract, waives review, or has another stated effect.
- Topic
- Separate disapproval
- What to know
- written disapproval, permitted reason, prohibited reason, purchase price, form, legal objection, cancellation, null and void, termination, and refund
- Best exam move
- Confirm that the clause authorizes disapproval and that the stated or actual basis is not contractually prohibited.
- Topic
- Separate proposed modifications
- What to know
- request, proposal, existing contract, counteroffer, disclaimer, title, survey, proration, closing, possession, representations, and risk allocation
- Best exam move
- Treat a review-period proposal according to the clause and correspondence, not automatically as a new formation-stage counteroffer.
- Topic
- Track the negotiation period
- What to know
- proposal deadline, response, acceptance, rejection, partial agreement, revised proposal, unresolved term, ten-day period, null and void result, and extension
- Best exam move
- A timely first letter does not eliminate a separate deadline for resolving proposed changes.
- Topic
- Draft effective notice
- What to know
- written notice, contract identity, property, parties, approval, disapproval, exact modifications, preservation language, signature, date, attachment, and contact information
- Best exam move
- Make the election and proposed terms definite enough to understand and prove.
- Topic
- Serve the proper recipient
- What to know
- seller, buyer, attorney, broker, designated address, email, portal, personal delivery, overnight delivery, copy, and changed contact information
- Best exam move
- Sending a perfect letter to an unauthorized person can still fail the notice clause.
- Topic
- Prove timely delivery
- What to know
- sent, served, delivered, received, mailbox rule, email timestamp, read receipt, transmission error, bounce, acknowledgment, certificate, and time zone
- Best exam move
- Distinguish drafting, sending, and effective receipt, then preserve the event the contract requires.
- Topic
- Handle extensions
- What to know
- written request, mutual assent, new date, new time, consideration, attorney authority, party authority, delivery, related documents, and no implied extension
- Best exam move
- Extend the review clock expressly before relying on extra time.
- Topic
- Recognize waiver
- What to know
- silence, missed deadline, express waiver, conduct, continued performance, later objection, reservation of rights, revival, estoppel, and counsel analysis
- Best exam move
- A common clause makes untimely silence a waiver, but the signed text and later facts decide.
- Topic
- Keep contingencies separate
- What to know
- inspection, financing, appraisal, title, condominium documents, sale of buyer property, lead, radon, disclosure, attorney review, and closing
- Best exam move
- Calendar each trigger, notice, cure, response, and expiration independently.
- Topic
- Protect earnest money
- What to know
- deposit, escrowee, entitlement, release authority, joint written direction, dispute, demand, sponsoring broker, interpleader, court order, and records
- Best exam move
- Do not confuse a contract refund right with authority to disburse disputed funds.
- Topic
- Use electronic records carefully
- What to know
- electronic signature, consent, email, portal, PDF, typed name, secure link, attribution, retention, accurate reproduction, and notice clause
- Best exam move
- Electronic form can work, but it does not cure wrong timing, recipient, authority, or content.
- Topic
- Follow Illinois document safeguards
- What to know
- signed transaction document, addition, deletion, alteration, written consent, all signatories, initials, signatures, true copy, 24 hours, and correction
- Best exam move
- Use Rule 1450.775 when review negotiations change a previously signed document.
- Topic
- Respect professional boundaries
- What to know
- approved form, factual completion, legal interpretation, custom language, unauthorized practice, attorney referral, client instruction, negotiation, documentation, and supervision
- Best exam move
- A licensee can coordinate facts and deadlines but should not decide whether legal disapproval is valid.
- Topic
- Close the review file
- What to know
- final status, signed amendment, approval letter, disapproval letter, delivery proof, updated calendar, earnest-money instruction, lender notice, title notice, and archive
- Best exam move
- Confirm what survived, what changed, and what deadline comes next.
Which distinctions produce the most mistakes?
- Terms
- Contractual review period vs. statewide cancellation right
- Difference
- Attorney review depends on agreed contract language. Illinois does not give every ordinary residential resale an automatic five-day cancellation right.
- Question cue
- Read the contract, not the custom.
- Terms
- Attorney review vs. attorney consultation
- Difference
- A review clause grants defined contract powers. Advice to consult counsel merely recommends legal review and may grant no post-acceptance exit.
- Question cue
- Granted remedy versus suggested advice.
- Terms
- Approval vs. disapproval
- Difference
- Approval accepts the contract within the clause's scope. Disapproval invokes a stated right to prevent or end obligations under the specified terms.
- Question cue
- Accept form versus reject under clause.
- Terms
- Disapproval vs. proposed modification
- Difference
- Disapproval invokes the clause's rejection remedy. A proposed modification asks the parties to change an existing term and may begin a resolution period.
- Question cue
- End deal versus revise deal.
- Terms
- Review proposal vs. counteroffer
- Difference
- A proposal under a post-formation review clause can seek changes while preserving the accepted contract. A formation-stage counteroffer rejects the prior offer and proposes a substitute.
- Question cue
- Modify formed deal versus replace offer.
- Terms
- Condition subsequent vs. condition precedent
- Difference
- A condition subsequent can terminate duties after formation. A condition precedent must occur before a duty or contract becomes effective, depending on the wording.
- Question cue
- Undo after formation versus trigger before duty.
- Terms
- Date of acceptance vs. attorney receipt date
- Difference
- Acceptance is often the contractual trigger. Counsel receiving the file later does not move that trigger unless the clause or a valid extension says so.
- Question cue
- Contract event versus office event.
- Terms
- Business days vs. calendar days
- Difference
- Business days usually exclude days identified by the contract, while calendar days run consecutively. Definitions and holiday treatment control.
- Question cue
- Defined workday count versus every date.
- Terms
- Sent vs. served
- Difference
- Sending proves transmission began. Service or receipt may require completed delivery to the designated person by the stated deadline.
- Question cue
- Dispatch event versus effective notice event.
- Terms
- Attorney review vs. inspection contingency
- Difference
- Attorney review addresses contractual and legal risk within its scope. Inspection addresses physical property findings under a separate procedure.
- Question cue
- Legal terms versus physical condition.
- Terms
- Refund entitlement vs. escrow release
- Difference
- A valid contract termination may create a right to the deposit. The escrow holder still needs lawful authority to disburse it.
- Question cue
- Who should receive versus who may release.
- Terms
- Review extension vs. closing extension
- Difference
- A review extension preserves attorney-review rights. A closing extension moves performance and does not automatically revive an expired review period.
- Question cue
- Preserve review versus move settlement.
The C-L-O-C-K check
- Clause: locate the exact attorney-review language, incorporated riders, defined terms, permitted actions, prohibited reasons, waiver language, and stated consequence.
- Launch: identify the Date of Acceptance or other trigger, exclude or include the trigger as directed, apply business-day and holiday definitions, and mark the deadline time.
- Option: determine whether counsel approves, disapproves, proposes modifications, requests documents, extends review, or preserves the current contract while negotiating.
- Communication: use the required writing, authorized signer, precise content, correct recipient, permitted method, and effective service or receipt event.
- Keep proof: retain acceptance, calendars, notices, transmission evidence, replies, extensions, final amendments, waiver status, escrow instructions, and the next active deadline.
- Question
- Does review exist?
- Evidence
- Signed clause and riders
- Failure risk
- Invented cancellation right
- Question
- When did it start?
- Evidence
- Acceptance record
- Failure risk
- Wrong trigger date
- Question
- When does it end?
- Evidence
- Definitions and calendar
- Failure risk
- Late notice
- Question
- What may counsel do?
- Evidence
- Approval-clause wording
- Failure risk
- Unauthorized disapproval
- Question
- How is notice effective?
- Evidence
- Notice and delivery terms
- Failure risk
- Sent to wrong recipient
- Question
- What happens next?
- Evidence
- Waiver and resolution language
- Failure risk
- Missed second deadline
How do the rules work in scenarios?
Common five-business-day calculation
Scenario: A contract accepted Monday states that attorneys may act within five business days after acceptance. Its definitions exclude weekends and the acceptance date, and there is no holiday. The deadline time is stated as 5 p.m.
- Tuesday is the first counted business day.
- Wednesday, Thursday, Friday, and the next Monday are days two through five.
- A notice must satisfy the contract's service rule by 5 p.m. Monday.
Answer: The stated review deadline is 5 p.m. on the following Monday.
Holiday changes the count
Scenario: Use the same facts, but Monday of the following week is a holiday excluded by the contract's business-day definition.
- The excluded holiday is not a business day under the stated definition.
- Tuesday becomes the fifth counted business day.
- The deadline time remains whatever the contract states.
Answer: The review deadline moves to the stated time on Tuesday.
Attorney proposes modifications
Scenario: Within a clause like the one in Patel, buyer's attorney proposes earlier survey delivery and stronger title protection and expressly states that the current contract is not revoked.
- The sale contract already formed on acceptance.
- The clause authorizes proposed modifications.
- The preservation language supports treatment as negotiation over the existing contract.
Answer: The letter is not automatically a formation-stage counteroffer.
Consult-an-attorney sentence only
Scenario: Auction materials advise every bidder to consult an attorney before bidding but give no right to approve, disapprove, modify, or void the completed sale afterward.
- The sentence recommends pre-bid review.
- It grants no post-acceptance attorney power.
- A court will read the auction and sale terms as a whole.
Answer: The advice alone is not an attorney-review cancellation clause.
Email drafted on time but served late
Scenario: Counsel finishes a disapproval email at 4:58 p.m. The clause requires receipt by seller's attorney at 5 p.m., but the message reaches the designated inbox at 5:03 p.m.
- Drafting is not receipt.
- The contract makes completed receipt the effective event.
- The required event occurred after the deadline.
Answer: The notice is late on the stated facts.
Inspection request sent under attorney review
Scenario: Buyer sends a repair list during attorney review but never follows the inspection clause's requirement to serve defect notice with the relevant report pages.
- The contract gives attorney review and inspection separate procedures.
- A legal-review letter does not automatically satisfy inspection content requirements.
- The inspection right may expire even while attorney negotiations continue.
Answer: Buyer has not shown compliance with the inspection contingency.
Valid disapproval, disputed deposit
Scenario: Buyer claims timely attorney disapproval and demands the earnest money. Seller disputes receipt and instructs the sponsoring broker not to release funds.
- The validity of disapproval is a contract dispute.
- A claimed refund right does not itself settle escrow authority.
- The broker must follow Illinois disbursement rules rather than decide the merits.
Answer: Hold and process the disputed funds under the applicable escrow rule.
What are the common exam traps?
- Trap
- Memorizing a statewide five-day rule
- Correction
- Five business days is common contractual language, not an automatic Illinois right in every sale.
- Trap
- Starting when the attorney opens the file
- Correction
- Use the Date of Acceptance or other trigger named in the signed clause.
- Trap
- Counting calendar days
- Correction
- Apply the contract's business-day, weekend, holiday, and deadline-time definitions.
- Trap
- Treating consultation advice as cancellation power
- Correction
- Find language authorizing approval, disapproval, modification, or a stated contract consequence.
- Trap
- Calling every modification a counteroffer
- Correction
- A proposal made under a formed contract's review clause can preserve the existing deal while seeking changes.
- Trap
- Disapproving for any reason
- Correction
- Read scope and restrictions, including any prohibition on disapproval based solely on purchase price.
- Trap
- Writing the letter before the deadline
- Correction
- Complete the service or receipt event the contract requires before time expires.
- Trap
- Sending only to the broker
- Correction
- Serve the party, attorney, or other recipient designated by the notice language.
- Trap
- Using verbal disapproval
- Correction
- Use a clear writing when the clause requires written notice and preserve transmission proof.
- Trap
- Ignoring the resolution deadline
- Correction
- Calendar both the initial proposal deadline and any later date for reaching written agreement.
- Trap
- Assuming attorney review pauses inspection
- Correction
- Run every contingency clock independently unless a valid writing changes it.
- Trap
- Extending closing instead of review
- Correction
- Name the attorney-review deadline expressly; moving closing alone does not revive it.
- Trap
- Letting a broker alter the contract
- Correction
- Obtain authorized written changes and follow Rule 1450.775 for signed documents.
- Trap
- Releasing disputed earnest money automatically
- Correction
- Separate contractual entitlement from the escrowee's legal authority to disburse.
- Trap
- Declaring a notice legally effective
- Correction
- Document facts and obtain counsel's interpretation when timing, authority, delivery, or scope is disputed.
Can you answer these original practice questions?
These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.
1. What creates an attorney review period in an ordinary Illinois resale?
- The signed contract
- A universal five-day statute
- The listing photograph
- The tax bill
Show answer and explanation
Answer: The signed contract
The parties receive only the review rights and procedures their agreement provides.
2. Is every Illinois attorney review period five business days?
- No
- Yes
- Only for cash sales
- Only for sellers
Show answer and explanation
Answer: No
Five days is common in some forms, but duration and scope vary by contract.
3. What commonly starts the review clock?
- The Date of Acceptance stated by the contract
- The first showing
- The appraisal date
- The closing date
Show answer and explanation
Answer: The Date of Acceptance stated by the contract
Always confirm the exact trigger in the signed language.
4. Under Patel, did a common attorney-approval clause prevent contract formation?
- No
- Yes
- Only if earnest money was paid
- Only for sellers
Show answer and explanation
Answer: No
The court treated the clause as a condition subsequent within a formed contract.
5. Is a timely proposal under attorney review always a counteroffer?
- No
- Yes
- Only by email
- Only if written
Show answer and explanation
Answer: No
Clause language and correspondence can preserve the existing contract while the parties discuss changes.
6. What controls whether notice is effective when sent or received?
- The contract notice language
- The broker's preference
- The inspection report
- The tax assessor
Show answer and explanation
Answer: The contract notice language
Drafting, transmission, service, delivery, and receipt are distinct events.
7. Does attorney review automatically extend inspection?
- No
- Yes
- Only on weekends
- Only for buyers
Show answer and explanation
Answer: No
Each contingency has its own scope and deadline unless validly changed.
8. Can advice to consult an attorney alone create a cancellation right?
- No
- Yes
- Only at auction
- Only after closing
Show answer and explanation
Answer: No
The agreement must grant an approval, disapproval, modification, or other contract right.
9. Does valid disapproval automatically authorize an escrow broker to release disputed funds?
- No
- Yes
- Only in cash
- Only after inspection
Show answer and explanation
Answer: No
Refund entitlement and lawful escrow disbursement are separate issues.
10. What is the safest role for a licensee during attorney review?
- Calendar facts, deliver documents, preserve proof, and refer legal questions
- Draft custom legal objections
- Decide disputed contract validity
- Release contested earnest money
Show answer and explanation
Answer: Calendar facts, deliver documents, preserve proof, and refer legal questions
Coordination supports the transaction without crossing professional boundaries.
How should you study this area?
- Session
- Session 1
- Focus
- Classify review language
- Proof you are ready
- Sort 40 attorney review, approval as to form, pre-signing consultation, condition subsequent, condition precedent, disapproval, modification, and no-review scenarios.
- Session
- Session 2
- Focus
- Build the deadline calendar
- Proof you are ready
- Solve 35 acceptance, business-day, calendar-day, weekend, holiday, deadline-hour, sent, served, received, waiver, and extension calculations.
- Session
- Session 3
- Focus
- Master permitted actions
- Proof you are ready
- Audit 35 approval, disapproval, purchase-price restriction, proposal, inquiry, counteroffer, preservation, response, unresolved modification, and null-and-void facts.
- Session
- Session 4
- Focus
- Separate transaction clocks
- Proof you are ready
- Review 35 attorney, inspection, financing, appraisal, title, condominium-document, lead, radon, disclosure, earnest-money, and closing deadline interactions.
- Session
- Session 5
- Focus
- Control Illinois documents and escrow
- Proof you are ready
- Audit 30 authorized alteration, all-signatory initials, 24-hour true-copy delivery, electronic record, joint direction, dispute, disbursement, and record-retention scenarios.
- Session
- Session 6
- Focus
- Run C-L-O-C-K
- Proof you are ready
- Audit two complete Illinois review files, score at least 90 percent, and state the clause, launch, option, communication, proof, and next deadline aloud.
Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.
Practice the topic in Pass Illinois
From concept to decision
Drill this topic, then review the explanation
Pass Illinois gives you original national and Illinois questions, topic-by-topic study, clear explanations, timed practice, flashcards, progress tracking, and Math Coach. Start free, find the weak distinction, and focus the next session there.
Questions students ask about Attorney Review Period: Illinois Real Estate Exam Guide
What is an attorney review period in Illinois real estate?
It is a contractually created window in which the parties' attorneys may take the actions authorized by the signed purchase contract. Depending on the clause, counsel may approve, disapprove, or propose modifications within a stated number of business days after acceptance. The clause also controls notice, service, waiver, negotiation time, and the result if agreement is not reached.
Does every Illinois home purchase have a five-day attorney review period?
No. Five business days is common in some residential forms, especially in parts of northern Illinois, but it is not a universal statewide cancellation period. The signed contract must actually contain the right. Another form may use a different period, limit review to form, require pre-signing review, or provide no post-acceptance attorney review at all.
When does the Illinois attorney review clock start?
Read the clause and the contract definitions. A common clause measures from the Date of Acceptance, not from the showing, offer date, earnest-money delivery, inspection, or the day counsel receives a copy. The contract decides whether the triggering day is excluded, how business days and holidays are treated, the deadline time, and whether notice must be sent or received by then.
Can an attorney cancel an Illinois real estate contract during review?
Only to the extent the contract authorizes it. A clause may permit written disapproval, permit proposed modifications followed by termination if unresolved, limit review to form, prohibit a price-only disapproval, or impose another condition. Illinois decisions show that wording matters. A general suggestion to consult counsel is not automatically a cancellation right.
Does proposing attorney-review changes create a counteroffer?
Not automatically. In Patel v. McGrath, the Illinois Appellate Court treated the accepted sale contract as formed and the review clause as a condition subsequent. The buyers' timely written proposals, which preserved the current contract, were invitations to vary an existing agreement rather than a formation-stage counteroffer. Different clause language or correspondence can produce a different result.
What happens if no attorney-review notice is served on time?
The clause controls. A common form says the review provision is waived and the contract remains in full force if written notice is not timely served. That does not waive unrelated inspection, financing, title, appraisal, or disclosure rights unless their own terms or later conduct say so. Missing one deadline does not rewrite every other contingency.
Is attorney review the same as a home inspection contingency?
No. Attorney review examines legal form, obligations, risk allocation, title provisions, deadlines, remedies, and other contract issues within its stated scope. An inspection contingency addresses physical-condition findings and usually requires its own timely notice and supporting report pages. The periods can run at the same time, but one does not substitute for the other.
Can a broker extend the attorney review period by email?
A broker should not assume so. An extension changes a contract right and needs the assent, authority, form, and delivery required by the agreement and law. Current Rule 1450.775 also protects signed transaction documents from unauthorized alteration. The clean practice is a timely written extension or attorney correspondence that clearly identifies the new deadline and is accepted by authorized parties.
Does attorney disapproval automatically release earnest money?
No. A valid disapproval may establish contractual entitlement to a refund, but entitlement and escrow authority are separate. The escrowee follows the contract, written joint direction, court order, or the Illinois disbursement rule that applies. If buyer and seller dispute validity or timing, a sponsoring broker holding the funds cannot simply decide the legal merits.
Can attorney-review notice be signed or delivered electronically?
Often yes, but the contract's notice clause comes first. Illinois electronic-transactions law generally recognizes electronic records and signatures when the parties agree to transact electronically, while preserving other legal requirements. Confirm the authorized sender, recipient, address, method, receipt rule, attachment, timestamp, and proof instead of assuming any text message is effective notice.
Are these official PSI questions or legal advice?
No. The practice questions are original. The PSI Illinois outline, Illinois statutes and administrative rules, and official Illinois court materials were checked through August 1, 2026. This is exam education, not legal, contract, title, escrow, disclosure, or transaction advice. A live matter requires the complete signed contract, riders, acceptance record, calendar, notices, delivery proof, attorney correspondence, earnest-money instructions, later agreements, and qualified Illinois counsel.
Primary sources
- PSI Illinois Candidate Information Booklet effective June 24, 2026
- Illinois Courts, Patel v. McGrath, published decision construing a common attorney-approval clause as a condition subsequent
- Illinois Courts, official real estate order reproducing and applying attorney-review and inspection deadlines
- Illinois Courts, official real estate order addressing an agreed review extension, requested documents, and limited cancellation authority
- Illinois Courts, official auction decision distinguishing a true approval clause from advice to consult counsel
- Illinois Joint Committee on Administrative Rules, 68 Ill. Adm. Code 1450.775 Written Agreements, effective July 7, 2025
- Illinois Joint Committee on Administrative Rules, 68 Ill. Adm. Code 1450.750 escrow disbursement and disputes
- Illinois General Assembly, 5 ILCS 175/5-120 electronic records and signatures
- Illinois General Assembly, 740 ILCS 80/2 land-contract writing and signature rule
The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.
Editorial status
Checked against primary sources
The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.