The doctrine of merger: Real estate contracts and tax prorationsBy Steven B. BashawReal Estate Law, November 2005The law in Illinois is well settled that the doctrine of merger provides that in the absence of an express provision otherwise in a contract, all agreements between a buyer and seller of real estate that are not “collateral and independent” of the deed merge into the deed when it is delivered to the buyer at closing and cannot thereafter be a basis for a cause of action.
Legislative updateBy James K. Weston, Sr.Real Estate Law, November 2005The General Assembly adjourned its Spring Session at the last minute of May, only a few days after its original scheduled end.
The Series LLC: new Illinois law provides avenue for asset protectionBy Ted M. Niemann, Sr. & Melinda S. MadisonReal Estate Law, November 2005Asset protection is a concern to many real estate clients. In various situations, asset protection is not only beneficial but often necessary for businesses to thrive and survive or for investments to truly pay off.
An early autumn miscellanyBy Gary R. GehlbachReal Estate Law, October 2005As fall begins, we look forward to reports from the Internal Revenue Service about changes in the standard mileage rate, the annual gift tax exclusion, the special use valuation rate (which, incidentally, plays a role in farmland assessed valuations), and other minutiae. In this issue we have some early answers and projections.
Food for thought: land law and public policyBy Howard SamsonReal Estate Law, June 2005Long ago, the social philosopher and economist Henry George proposed a "Single Tax" that shifted the incidence of taxation entirely onto ground rent.
Unresolved issues concerning tenancy by the entiretyBy Richard F. BalesReal Estate Law, February 2005Since 1990 married couples have had the option of owning their marital home as tenants by the entirety (735 ILCS 5/12-112; 750 ILCS 65/22; 765 ILCS 1005/1c).
The 7 percent assessment cap creates uncertainty in residential real estate closingsBy John K. NorrisState and Local Taxation, August 2004I'm back," and with those often-heard remarks still ringing, let us revisit an issue that our Section Council was involved in during the past year: Public Act 93-715 is the embodiment of three bills that the Section collectively opposed.
HUD’S “Final Rule” on its proposal to amend RESPABy Joseph R. Fortunato, Jr.Real Estate Law, June 2004In the summer of 2002, the U.S. Department of Housing and Urban Development (HUD) issued a proposed rule that would have revamped the Real Estate Settlement Procedures Act of 1974 (RESPA).
Real property tax advantages of a Class L (Landmark) designationBy Karen DimondState and Local Taxation, June 2004Under the Cook County Real Assessment Classification Ordinance, non-residential property that has been designated a landmark building or a contributing building in a historic or landmark district may be eligible for a "Class L" designation.
New legislation concerning utilities and rights-of-wayBy Richard F. BalesReal Estate Law, May 2004Generally speaking, a public utility has the right to install underground utilities in a statutory dedicated road. Such underground installations are regarded as being within the easement for highway purposes, in favor of the public.
Road conveyancing after BennoBy Howard SamsonReal Estate Law, May 2004The real estate attorney who rightfully considers himself a skilled practitioner is still, from time to time, heard to bemoan the intricacies of certain areas of his specialty.
10 things every buyer needs to close a commercial real estate loanBy R. Kymn HarpReal Estate Law, March 2004For 25 years, I have represented borrowers and lenders in commercial real estate transactions. During this time it has become apparent that many Buyers do not have a clear understanding of what is required to document a commercial real estate loan.
Expansion of the Transfer TaxBy Dana M. NaumanReal Estate Law, March 2004The Illinois Real Estate Transfer Tax has been amended by Public Act 93-0657, which now imposes the tax when a controlling interest in a real estate entity is transferred.
Illinois Supreme Court finds municipal demolition statute constitutionalBy Jack H. TibbettsReal Estate Law, March 2004The Illinois Supreme Court on February 20, 2004 reversed the Illinois Second District Appellate Court and found the Illinois statute contained at 65 I.L.C.S. 5/11-31-1 constitutional.
Partition/co-ownership/co-habitationBy Bernard WydajewskiGeneral Practice, Solo, and Small Firm, January 2004Your client states she is ready to end her relationship with her boyfriend. They purchased a home together 10 years ago as joint tenants. But now she wants out and he won't give her a "fair share." What is her "fair share" and how do you obtain it?
Federal preemption of state prepayment-penalty statutes: Back to the future?By John C. MurrayReal Estate Law, October 2003Federal associations have, for many years, been able to include prepayment penalty clauses in commercial loan documents and enforce such clauses according to their terms, regardless of any state law to the contrary (including equitable principles). C.F.R. §§ 545.2 and 545.34(c), as amended at 49 F.R. 43044 (1984), authorize a federal association to include a prepayment penalty clause in any loan it makes and to enforce such a clause in accordance with its terms regardless of any state law-including equitable principles in a foreclosure action-that purports to prohibit the collection of a prepayment penalty under certain circumstances.
Insurer uses termites to pursue home sellerBy Gary R. GehlbachReal Estate Law, October 2003Evidence that sellers of a residence concealed active termite infestation was sufficient for the buyers' homeowners' insurance company to collect from the sellers.
New laws from the 93rd General Assembly, 2003 Spring SessionBy James K. Weston, Sr.Real Estate Law, September 2003H 1584: Condominium Act amended to permit absentee voting as an alternative to proxies. Numerous rules pertaining to the implementation of the changes are promulgated. [P. A. 93-0243; effective January 1, 2004].
Revenue ruling limits related party exchangesBy Suzanne Goldstein BakerReal Estate Law, September 2003A Revenue Ruling issued by the Internal Revenue Service on November 26, 2002, added a 10-penny nail to the coffin of a certain type of tax-deferred exchange among related parties.
Issues relating to toxic moldBy Margery NewmanReal Estate Law, August 2003Frequently, in the construction industry, a "hot issue" overtakes the industry. The latest "hot issue" is mold-related lawsuits relating to residential and office buildings.
Practice tipsBy Donald L. ShriverReal Estate Law, August 2003On March 20, 2003, the Fourth District Appellate Court of Illinois decided Rothers Construction, Inc. v. Centurion Industries, Inc., et al., 272 Ill.Dec. 105, 786 NE2d 644.
The standard of review for granting or denying special use permits significantly changedBy Jack H. TibbettsReal Estate Law, August 2003The Illinois Supreme Court has in two recent cases changed the standard for review of the granting of a special use permit to administrative review and left the standard of review for zoning variances as de novo review.
