Real Estate Law

(Lang, D-Skokie; Wilhelmi, D-Joliet) makes several changes to foreclosures affecting notices and judicial sales. (1) If a unit of government doesn’t publish on its website where notices are to be sent, it directs notice by first-class mail to certain designated county or municipal officers for residential foreclosures. (2) For judicial sales, it gives priority to the person appointed by the court under Sec. 15-1506. If no person is appointed by motion under Sec. 15-1506, the plaintiff may choose the person to conduct the sale who must be (i) appointed under Sec. 15-1506 by the court before this new law’s effective date, (ii) any judge, or (iii) the sheriff in the county where the real estate is located. Judicial-sale changes are effective immediately, and notice changes are effective Jan. 1, 2011. Sent to the Governor.

(Collins, D-Chicago; Lyons, D-Chicago) creates two new acts with two new fees to administer and fund foreclosure-counseling programs for consumers and to defray municipalities’ costs to remove and secure abandoned residential by property. (1) The plaintiff in a mortgage foreclosure for residential property must pay a $50 fee for the benefit of the counseling programs. (2) The purchaser of residential property at a judicial sale must pay a sliding fee calculated at $1 for each $1,000 or fraction of the amount paid by the purchaser to defray municipalities' costs. This fee is capped at $300, and there is exception for mortgagees, judgment creditors, or other lienors acquiring the residential property by rights that arose before the judicial sale. Passed both chambers.

House Bill 5429 (Feigenholtz, D-Chicago; Noland, D-Elgin) creates the Homeowners’ Solar Rights Act that prohibits governing boards of condominiums and other associations from banning solar-energy systems. Applies to deed restrictions and covenants of associations as well. Exempts buildings that are taller than 30 feet. Passed both chambers.

(Walker, D-Arlington Heights; Kotowski, D-Park Ridge) gives a mortgagor-defendant the right to request a 90-day stay in foreclosure proceedings if it is determined that he or she was deployed to a combat or combat support posting with the United States armed forces. The court is required to grant this stay. This is in addition to any other rights the veteran may use. Effective Jan. 1, 2011.

(Zalewski, D-Chicago; Harmon, D-Oak Park) makes a change to Cook County eviction actions at the request of Sheriff Tom Dart. It requires that the complaint contain the following information (to the extent the plaintiff knows): (1) The name of each known occupant for the premises, along with each known occupant's date of birth. (2) If the actual date of birth is unknown, whether a known occupant is known to be under the age of 18 or more than 65 years old. (3) Whether a known occupant has a disability but only to the extent that he occupant has self-reported the disability to the plaintiff. But the failure to provide this information does not affect the validity or the legal effect of any complaint or of any order or judgment entered in the action. Exempts public-housing programs. It is on third reading in the Senate.

(Wilhelmi, D-Joliet; Fritchey, D-Chicago) creates the Transfer Fee Covenant Act that declares that transfer fee covenants violate the public policy of favoring the transferability of real property free of unreasonable restraints. A transfer fee is something every future buyer pays to the developer for the developer's initial efforts. The Realtors promoted this bill to ensure that this fee didn't start appearing in Illinois real estate transactions as it has elsewhere. Makes it void for a transfer fee covenant or a lien to secure the payment of a transfer fee that is recorded after the effective date and does not run with the title to the real property. Provides that it cannot be presumed that the provisions of this Act mean that a transfer fee covenant or lien recorded before the effective date is valid and enforceable. Passed both chambers.

(Wilhelmi, D-Joliet; Schmitz, R-Batavia) creates a comprehensive statute governing real estate other than a condominium or cooperative in which the owners are obliged to pay for common areas that is administrated by an association. It also creates the Service Member Residential Property Act to govern termination of leases and other related issues if the lessee goes on active duty military service for not less than 180 days. Passed both chambers.