Real Estate Law

In re Estate of Aryeh

Illinois Appellate Court
Civil Court
Probate
Citation
Case Number: 
2021 IL App (1st) 192418
Decision Date: 
Friday, March 12, 2021
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Affirmed.
Justice: 
ODEN JOHNSON

Judgment creditor of deceased testator filed petition for letters of administration to collect against decedent's estate. Creditor filed petition for declaration of interest in real estate, claiming interest in property conveyed to decedent and his spouse as tenants by the entirety was improperly titled, under the Joint Tenancy Act, because it was not their homestead. The unsuccessful creation of a tenancy by the entirety in a deed to a married couple becomes a joint tenancy, not a tenancy in common. Court's denial of judgment creditor's request for a declaratory judgment was not an abuse of discretion. (MIKVA and HARRIS, concurring.)

A Promise of Clear Title

By Philip J. Vacco
March
2021
Article
, Page 34
Transferring marketable title using special warranty deeds for residential real estate transactions.

Senate Bill 72

Topic: 
Electronic Wills and Remote Witnesses Act

(Crowe, D-Maryville) provides that an electronic will shall be executed by the testator or by some person in the testator's presence and at the testator's direction, and attested to in the testator's presence by two or more credible witnesses. Provides for the revocation of an electronic will. Provides that an electronic will is a digital asset and any person or business in possession of an electronic will is a custodian.

Provides that a person may witness any document, other than a will, using audio-video communication between the individual's signing the document and the witness. Provides for remote attestation for a will and methods for determining a signer's or testator's identity.

Provides for the verification of an electronic will when a petition to have an electronic will admitted to probate is filed. Provides for: admission of a paper copy of an electronic will; admission of a will attested to by a witness who is physically present; admission of a will attested to by a remote witness; and admission of a will signed under the Electronic Commerce Security Act.

Provides that nothing prohibits any party from introducing evidence of fraud, forgery, compulsion, or other improper conduct which in the opinion of the court is deemed sufficient to invalidate the will when being admitted. Provides for: formal proof of a will with a remote witness; formal proof of an electronic will; and formal proof of a will witnessed under the Electronic Commerce Security Act.

Senate Bill 72 has just been introduced. 

Senate Bill 47

Topic: 
Real Property Transfer on Death Instruments

(Barickman, R-Bloomington ) amends the Real Property Transfer on Death Instrument Act to make numerous changes since its enactment in 2012 to reflect practitioners' experience with the original Act. It has just been introduced. The changes are as follows: 

(1) The definition of owner is revised to reflect that only individuals acting in their own personal capacity can execute a TODI.

(2) The term “residential real estate” is replaced throughout the text with the term “real property.” Illinois is the only state to date that limits the availability of a TODI to residential real estate. 

(3) Clarifies that a TODI can transfer the real property to the beneficiary in any form of ownership recognized and valid under state law. 

(4) Clarifies that a TODI can designate the trustee of a trust that may be amended, modified, revoked or terminated after the date the TODI is executed, and a trustee under a will of another individual who has predeceased the owner.

(5) Clarifies that a TODI may not be admitted to probate as the will of the owner or as a codicil to the owner’s will.

(6) Clarifies that a TODI witnessed by only one witness, even if notarized, is not a valid TODI. It also clarifies that the attestation clause language and formalities to be followed in executing the TODI require only “substantial compliance.”

(7) Clarifies that the owner may transfer the real property at any time without regard to the fact a TODI is filed. A transfer of the real property effectively revokes the TODI, not by means of a revocation, but by the doctrine of extinction by ademption.

(8) Regarding the default rules that govern when two or more beneficiaries are designated, Illinois law presumes when property is deeded or transferred to two or more parties, the parties take equal shares as tenants in common and not as joint tenants unless otherwise indicated. Stating the default rule, though perhaps not legally necessary, will avoid a possible ambiguity and clarify the default rule governing lapses and concurrent ownership.

(9) Clarifies that unless waived by the surviving spouse, a TODI is subject to renunciation by the surviving spouse and provides the procedure by which the rights are to be exercised.

(10) Clarifies the currently vague language on the rights of creditors with more specific language borrowed from the Uniform Law Commission but consistent with long-standing Illinois law.

Senate Bill 46

Topic: 
Special warranty deeds

(Barickman, R-Bloomington) amends the Conveyances Act to create a statutory form for special warranty deeds. Provides that every deed in substance in the specified form shall be deemed and held a conveyance in fee simple, to the grantee, his or her heirs and assigns, with specified covenants on the part of the grantor. It has just been introduced. 
 

McHenry Savings Bank v. Moy

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2021 IL App (2d) 200099
Decision Date: 
Wednesday, January 20, 2021
District: 
2d Dist.
Division/County: 
McHenry Co.
Holding: 
Affirmed.
Justice: 
McLAREN

Court properly granted summary judgment for Plaintiff mortgage foreclosure action. Res judicata does not apply to bar Bank's foreclosure action, because the facts, conditions, and issues involved in the first 2 cases were different from those in this case. The current action does not arise from the same set of operative facts as the first 2 actions. Defendant prevailed in the 1st action and the 2nd action was dismissed with prejudice. When Defendant subsequently defaulted in 2 months, this new default constituted the basis for a new cause of action. (JORGENSEN and BRENNAN, concurring.)

Ocwen Loan Servicing, LLC v. DeGomez

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2020 IL App (2d) 190774
Decision Date: 
Wednesday, December 30, 2020
District: 
2d Dist.
Division/County: 
Du Page Co.
Holding: 
Affirmed.
Justice: 
McLAREN

Plaintiff filed mortgage foreclosure action, and Defendants were served. Court entered default judgment of foreclosure and property was sold through a sheriff's sale, and court confirmed the report of sale. More than 8 years after foreclosure action was filed, Defendants filed petition for relief from void judgment, arguing that because  Defendants were not properly named on face of the summons, court lacked personal jurisdiction. Defendant DeGomez's name appeared in the caption on summons, and the absence of her name following "To Defendant" did not defeat personal jurisdiction over her. Summons failed to name Defendant Trujillo on its face and thus was no summons at all. However, laches bars her claim for possession, use and occupancy, and her claim for restitution is not cognizable in a section 2-1401 action. (BRIDGES and JORGENSEN, concurring.)

Adler v. Bayview Loan Servicing, LLC

Illinois Appellate Court
Civil Court
Foreclosure
Citation
Case Number: 
2020 IL App (2d) 191019
Decision Date: 
Tuesday, December 29, 2020
District: 
2d Dist.
Division/County: 
Kendall Co.
Holding: 
Affirmed.
Justice: 
BRENNAN

(Court opinion corrected 12/30/20.) Bank had previously obtained judgment of foreclosure and order confirming judicial sale of Plaintiffs' home. Plaintiffs then filed claims under Real Estate Settlement Procedures Act (RESPA) and Consumer Fraud Act, alleging that bank and loan servicer engaged in misconduct arising out of foreclosure proceeding. Court properly dismissed complaint as claims were barred by section 15-1509(c) of Mortgage Foreclosure Law.  That section precludes all claims of parties to the foreclosure related to the mortgage or the subject property, except for claims as to the interest in the proceeds in a judicial sale. The proper time to raise the issues in Plaintiffs' complaint was between the judgment of foreclosure and the confirmation of the sale, as contemplated in section 15-1508. As Plaintiffs did not pursue these claims as contemplated, they are claim-barred pursuant to section 15-1509(c). (McLAREN and JORGENSEN, concurring.) 

In re Application of the County Collector

Illinois Appellate Court
Civil Court
Tax Deeds
Citation
Case Number: 
2020 IL App (1st) 191464
Decision Date: 
Monday, December 28, 2020
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Reversed and remanded.
Justice: 
HYMAN

Petitioner LLC purchased delinquent 2014 taxes on a commercial condominium unit. After LLC obtained and recorded a tax deed for the property, Respondent LLC intervened and moved to vacate the order. Court erred in granting motion and vacating order. Petitioner's notice of sale satisfied requirements and purpose of Section 22-5 of Property Tax Code by listing only the year for which the taxes were sold. (PIERCE, concurring; WALKER, dissenting.)

City of Chicago v. Eychaner

Illinois Appellate Court
Civil Court
Eminent Domain
Citation
Case Number: 
2020 IL App (1st) 191053
Decision Date: 
Monday, May 11, 2020
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Affirmed.
Justice: 
HYMAN

(Court opinion corrected 12/22/20.) Defendant owned vacant land at corner of Grand Avenue and North Jefferson Street in Chicago. City proposed creating a planned manufacturing district (PMD) there, and chocolate factory was proposed to be included in PMD. City filed complaint to condemn Defendant's property through eminent domain. After first jury trial, verdict for Defendant for $2.5 million. After 2nd jury trial for limited purpose of just compensation, verdict for Defendant for $7.1 million. Appellate court had previously found that this taking was constitutional, in Defendant's initial appeal, and thus the law-of-the-case doctrine binds appellate court to that decision. Trial court properly refused to reconsider its 2006 denial of the traverse. Defendant failed to meet elements required to grant motion for reconsideration based on newly discovered evidence. Defendant knew of the evidence of changed circumstances before the 2nd trial and partly presented to the jury.(GRIFFIN and PIERCE, concurring.)