Real Estate Law

(Burke, D-Evergreen Park; Mulroe, D-Chicago) does three things in response to the LaSalle Bank National Association vs. Cypress Creek opinion. (1) Requires that the owner or interested person’s demand for suit to be commenced or answered within 30 days must contain this language in at least 10-point, boldface type: “Failure to respond to this notice within 30 days after receipt, as required by Section 34 of the Mechanics Lien Act, shall result in the forfeiture of the referenced lien.” (2) Defines a “lien creditor” as someone who does work or furnishes material under this Act. A lien creditor is preferred over other encumbrances except that previous encumbrances are preferred only to the extent of the value of the land at the time the contract was made for the improvements, and each lien creditor is preferred to the value of all later improvements regardless of whether the lien creditor provided those improvements. (3) If the sale proceeds are insufficient to satisfy claims of both prior encumbrances and lien creditors, the sale proceeds are to be distributed as follows. (a) Any previous encumbrance has a paramount lien in the portion of the proceeds attributable to the value of the land at the time of making of the contract for improvements. (b) Any lien creditors have a paramount lien in the portion of the proceeds attributable to all later improvements made to the property. (4) It has an immediate effective date. House Bill 3636 is in the House awaiting concurrence on Senate Amendment No. 2.

(Silverstein, D-Chicago; Feigenholtz, D-Chicago) creates a $100 fee to open a decedent's estate to fund the State Guardianship and Advocacy Commission. It exempts indigents, the State Guardian, any state agency, any local public guardian, and any state's attorney. (2) It also allows the court to appoint a limited guardian for a disabled adult who lacks some but not all of the required capacity. If the court finds that the ward is totally without the required capacity, it may appoint a plenary guardian. (3) It adds criteria for the termination of the guardianship or modification of the guardian's duties. Effective January 1, 2013.

(Harmon, D-Oak Park; Zalewski, D-Chicago) conforms Article 9 of the Uniform Commercial Code to the 2010 amendments as proposed by the Uniform Law Commission. (See the June Illinois Bar Journal article by Michelle Nijm that discusses this bill in more detail.) Effective July 1, 2013.

(Sandack, R-Lombard; Mathias, R-Buffalo Grove) exempts from judgment a revocable or irrevocable trust that names the wife or husband of the insured or which names child, parent, or other person dependent upon the insured as the primary beneficiary of the trust. Effective July 1, 2012.

(Althoff, R-Crystal Lake; Tyron, R-Crystal Lake) requires work to be done or materials furnished within three years for residential property and five years for any other kind of property. Senate Bill 3792 sunsets on January 1, 2016; at which time the limitation then reverts to three years for any kind of property at that time. Effective January 1, 2013.