Real Estate Law

House Bill 189

Topic: 
Omnibus condo legislation

(Thapedi, D-Chicago; Raoul, D-Chicago) makes numerous changes affecting community associations and condos. Among those changes is the requirement that associations and condos that have 100 or more units to use generally accepted accounting principles in fulfilling their accounting obligations. 

House Bill 189 also changes some parts of the statute governing the examination of a condo association’s records. It authorizes reasonable attorney’s fees and costs to a unit member who prevails in an enforcement action if seeking to examine or copy (1) all contracts to which the association is a party or under which it or the unit owners have obligations; and (2) the books and records for the association’s current fiscal year and the last 10 fiscal years. It also reduces the time in which an association must make these records available from 30 business days to 10 business days or it will be considered a denial of the request.

It also amends the right to examine and copy the ballot and proxy information and current listing of the names, addresses, email addresses, telephone numbers, and weighted vote of all voting members. A member must have a purpose that relates to the association to exercise this right, and the board may ask for the member to so certify. The member may not seek these records for a “commercial purpose” that is defined as use in any form for sale, resale, or solicitation or advertisement for sales or services. House Bill 189 makes it discretionary instead of mandatory on whether the association must charge for the retrieval or copying of these records.

Passed both chambers; effective January 1, 2018 if the Governor signs the bill. 

House Bill 302

Topic: 
Unclaimed Life Insurance Benefits Act

(Martwick, D-Chicago; Collins, D-Chicago) expands last year's original Unclaimed Life Insurance Benefit Act that required insurance companies to perform a check of policies in force (not lapsed) as of January 1, 2017 against the Social Security Death Master File. Insurance companies must now check all policies that are currently in force or were in force as of January 1, 2000, unless the company shows proof that they did not keep electronic records, in which case they must check all current policies and all policies in effect as of January 1, 2012.

Passed both chambers; effective January 1, 2018 if the Governor signs it.

 

Reverse Mortgage Solutions, Inc. v. Rahman

Illinois Appellate Court
Civil Court
Foreclosure
Citation
Case Number: 
2017 IL App (1st) 161035
Decision Date: 
Tuesday, June 6, 2017
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Reversed and remanded.
Justice: 
HYMAN

Plaintiff company tried to foreclose on property after homeowners died, but their daughter fought foreclosure. Quitclaim deed of husband, conveying property to his wife, contains a sufficient description of property to convey it. After wife died intestate, husband inherited some portion of property through wife's estate, which he was able to convey through mortgage. Plaintiff alleged sufficient facts and it is unknown how much husband inherited as probate estate was not opened immediately after wife's death. Section 2-619 dismissal was error; remanded for proceedings including discovery. (PIERCE and MASON, concurring.)

Senate Bill 885

Topic: 
Installment Sales Contract Act

(Koehler, D-Peoria; Gordon-Booth, D-Peoria) creates the Installment Sales Contract Act. It will require that sales of residential real estate by installment contract conform to the Act. “Residential real estate” means real estate with a dwelling structure excluding property that is sold as a part of a tract of land consisting of four acres or more that is zoned for agricultural purposes.

It applies to sellers that enter into an installment sale contract more than three times during a 12-month period to sell residential real estate. Within ten days of the date of sale the seller must record the contract or a memorandum of the contract with the recorder of deeds. It prohibits the installment sale contract from forbidding the buyer to record the contract or a memorandum of the contract. Makes it a violation of the Consumer Fraud and Deceptive Business Practices Act to knowingly violate the Installment Sales Contract.

Passed both chambers; effective January 1, 2018 if signed into law. 

J&A Cantore, LP v. The Village of Villa Park

Illinois Appellate Court
Civil Court
Real Property
Citation
Case Number: 
2017 IL App (2d) 160601
Decision Date: 
Wednesday, May 31, 2017
District: 
2d Dist.
Division/County: 
DuPage Co.
Holding: 
Affirmed.
Justice: 
BIRKETT

Court properly dismissed 2 counts of Plaintiff's complaint against City, seeking to eject City from a disputed portion of real property. Court properly concluded that proprietor of plat of addition effected a statutory dedication of disputed property for public use. City accepted dedication for public use of its portion of disputed property. Court properly determined that disputed property was subject to public use.(HUDSON and HUTCHINSON, concurring.) 

Siena at Old Orchard Condominium Association v. Siena at Old Orchard, LLC

Illinois Appellate Court
Civil Court
Condominiums
Citation
Case Number: 
2017 IL App (1st) 151846
Decision Date: 
Friday, March 24, 2017
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Reversed.
Justice: 
GORDON

(Court opinion corrected 4/6/17.)Dispute over construction defects discovered at a condominium complex. Condo association and its board of directors sued developers and president of Association's initial board of directors. Court erred dismissing suit, andin finding Association had waived its claims against Defendants by failing to follow mandatory dispute resolution procedures set forth in article 12 of declaration. As that article was later amended, Association could properly proceed directly to suit without first seeking mediation or arbitration. Releases are not alternate basis to affirm court's dismissal, as facts as alleged in complaint show that person who signed releases did not have authority to execute them. (LAMPKIN and REYES, concurring.)

 

Enbridge Energy v. Fry

Illinois Appellate Court
Civil Court
Condemnation
Citation
Case Number: 
2017 IL App (3d) 150765
Decision Date: 
Thursday, April 6, 2017
District: 
3d Dist.
Division/County: 
Kankakee Co.
Holding: 
Affirmed.
Justice: 
CARTER

Plaintiff filed condemnation suit to obtain easement rights over farmland so that it could build and operate a new underground pipeline. Landowner Defendants opposed suit and filed a traverse and motion to dismiss, which court denied. After jury trial on condemnation complaint, directed verdict entered for Plaintiff as to amount of just compensation it was required to pay to landowners. Plaintiff was not required to tender its land market survey to landowners during negotiations to satisfy good-faith requirement. Court properly barred testimony of landowners as to property value as directly contrary to their prior deposition testimony and as improper attempt to avoid court's bar of their expert appraiser's testimony. No evidence that jury had been prematurely discharged, as trial judge was scheduling jury's presence in courtroom to minimize inconvenience to jurors in allowing them to phone courthouse to determine if their appearance was required. (HOLDRIDGE and LYTTON, concurring.)

BMO Harris Bank N.A. v. Joe Contarino, Inc.

Illinois Appellate Court
Civil Court
Foreclosure
Citation
Case Number: 
2017 IL App (2d) 160371
Decision Date: 
Thursday, March 23, 2017
District: 
2d Dist.
Division/County: 
Winnebago Co.
Holding: 
Affirmed.
Justice: 
JORGENSEN

Plaintiff bank filed mortgage-foreclosure complaint and obtained $1.5 million judgment.Plaintiff, in supplementary proceedings, caused issuance of citation to discover assets and a 3rd-party citation to company, owned by Defendant's wife, that collected rents for Defendant's properties. Three local banks sought to intervene in supplementary proceedings, to assert adverse claims on rents held by that company. Court properly found that Plaintiff bank did not have priority over adverse claimants as to rents. Pursuant to Section 31.5 of Conveyances Act, rental agreements such as the forbearance agreements are beyond the reach of a 3rd party such as Plaintiff bank. Section 31.5 provides that assignment of rents is perfected upon recording. Mere recording does not affect who is entitled to rents until assignee enforces assignment under applicable law unless parties agree otherwise. (McLAREN and BURKE, concurring.)

Lake County Grading Company, LLC v. Forever Construction, Inc.

Illinois Appellate Court
Civil Court
Mechanic's Liens
Citation
Case Number: 
2017 IL App (2d) 160359
Decision Date: 
Friday, May 19, 2017
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Reversed and remanded.
Justice: 
BURKE

Bank obtained foreclosure judgment on warehouse. Before confirmation, warehouse was destroyed by fire. Plaintiff company demolished remains of warehouse, and Plaintiff recorded a mechanic's lien upon completion of work. Bank was not a bona fide innocent 3rd-party purchaser, because through its conduct it induced Plaintiff to perform the work and file separate action. Plaintiff had a right to intervene in foreclosure action but was not required to do so. Legal remedy of statutory mechanic's lien precluded equitable lien as a potentially viable alternative claim for Plaintiff.(HUTCHINSON and SPENCE, concurring.)

Olive Portfolio Alpha, LLC v. 116 West Hubbard Street, LLC

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2017 IL App (1st) 1160357
Decision Date: 
Thursday, March 23, 2017
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div.
Holding: 
Affirmed.
Justice: 
McBRIDE

(Court opinion corrected 3/30/17.) Court entered judgment of foreclosure and sale in Plaintiff's favor; and granted motion to confirm judicial sale. Court was within its discretion to deny Defendant's motion for discovery, and in granting Plaintiff's motion for summary judgment. Defendant had significant period of time to engage in discovery and to respond to Plaintiff's summary judgment motion, but failed to take timely action. Court did not err in simultaneously confirming judicial sale and granting its counsel's motion to withdraw. Defendant has not raised any claim of prejudice in confirming sale without allowing 21-day continuance.As Defendant failed to set forth argument under any one of the four bases listed in Section 15-1508(b) of Mortgage Foreclosure Law, court was required to confirm sale. (ELLIS and BURKE, concurring.)