Member Groups

Real Property
The newsletter of the ISBA’s Section on Real Estate Law

April 2010, vol. 55, no. 5

Legislative report

The first year of the 96th General Assembly was again one of the most active periods in legislative history. It had many truly historic moments, not the least of which was the impeachment of Governor Blagojevich. The following is a brief review of the Acts passed having a bearing on general real estate matters.



P.A. 96-0055 – SB 154 – Amends the Condominium Property Act (765 ILCS 610/18) to provide that the owner of a unit that is in arrears for the payment of regular or special assessments shall not be counted toward a quorum but otherwise retains the right to vote on amendments to the bylaws. Effective January 1, 2010.

P.A. 96-0174 – HB 688 – Amends the Condominium Property Act to add a new section (765 ILCS 605/14.5) that defines “distressed property,” provides procedures where the condominium is in violation of building codes, half or more of the units are not occupied, 60% or more of the units are in foreclosure, there are more units recorded than exist, utilities to 40% or more of the units have been terminated or are threatened with termination, or taxes for 60% or more of the units are delinquent. A court is authorized to appoint a receiver that is given broad powers enumerated in the Act.

P.A. 96-0228 – HB 155 – Amends the Condominium Property Act to add a new section (765 ILCS 605/22.2) that bars the condominium association from exercising a right of refusal, option to purchase or right to disapprove the sale where a resale is financed by a loan guaranteed by the Federal Housing Authority.


P.A. 96-0026 – SB 1489 – Creates the Green Infrastructure for Clean Water Act. The Act provides for a study and report back to the General Assembly by June 30, 2010 on the best method of dealing with urban storm water, including management techniques or practices that will solve the problem with the best long term benefit to the State. Effective June 30, 2009.

P.A. 96 – 0073 – HB 1013 – Creates the Green Buildings Act. Provides that any new construction of State-funded buildings or major renovations to existing buildings (40% or more of current replacement cost) must comply with “Green Building Standards” as set forth in the Act. Effective July 24, 2009.

P.A. 96 – 0232 – HB 214 – The Residential Real Property Disclosure Act (765 ILCS 77/35) is amended by the addition of a new line 23 to the Disclosure Form requiring information as to the manufacture of methamphetamine on the property. Effective August 11, 2009.

P.A. 96 – 0278 – HB 2439 – The Illinois Radon Awareness Act (420 ILCS 46/10) is amended to provide that a seller must disclose that they either had no knowledge of elevated radon concentrations in the dwelling or that prior elevated radon concentrations have been mitigated or remediated. Residential dwelling units located on the third story or higher above ground level are exempt from the Act. This includes but is not limited to condominium units or units in a residential cooperative. Effective August 11, 2009.

P.A. 96 – 0417 – HB 4223 – The School Code (105 ILCS 5/10-20.46) is amended to add a new provision providing for radon testing for new and existing school buildings with a recommended schedule for retests.


P.A. 96-0110 – HB 153 – Amends the Code of Civil Procedure (735 ILCS 5/15-1509.5) to provide for a notice to be added to a deed executed pursuant to a foreclosure or consent foreclosure that states the grantee’s or mortgagee’s name (name of contact person), street and mailing address and telephone number. Effective July 31, 2009.

P.A. 96-0111 – HB 3863 – Amends the Code of Civil Procedure (735 ILCS 5/15-1202.5, 15-1508.5, 1701, 15-1703 and 15-1704) to define “dwelling unit” for the purpose of notification of foreclosure actions, including the form of notice. Effective August 11, 2009.

P.A. 965-0265 – HB 2005 – Amends the Code of Civil Procedure (735 ILCS 5/15-1508) to permit a mortgagor that occupies the property in foreclosure to match a bid at sale without requiring a guarantee or bond. Effective August 11, 2009.


P.A. 96 -0305 – HB 3726 – The Code of Civil Procedure (735 ILCS 5/2-1602 and 13-218) is amended to provide for a twenty year limitation from the entry of a judgment for the filing of a petition of revive it. Effective Date August 11, 2009.


P.A. 96-0102 – HB 2530 – The School Code is amended to ass “mine subsidence” to the list of allowable uses of state funding for temporary relocation expenses. Effective July 29, 2009.


P.A. 96- 0112 –HB 4011 – Amends the Residential Mortgage License Act of 1987 (205 ILCS 635/) extensively to conform it to the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008. The amendment is aimed at mortgage brokers and their employees and provides for strict regulation of that industry. The 37 page bill cannot adequately be summarized here and readers are urged to obtain a copy of the bill and read it in its entirety. Effective July 31, 2009.


P.A. 96 – 0654 – HB 236 – Amends the Mechanics Lien Act (770 ILCS 60/7) to add a provision requiring general contractors for improvements to owner-occupied single-family residences to give the owner a written notice within 10 days after the recording of a mechanics lien against any property of the owner. Notice is given when sent or personally delivered. Failure to give the notice that results in damage to the owner will offset the lien to that extent. Recording of a lien is not an element of damage. The Act does not apply to subcontractors. The Act only applies to contracts entered into after the effective date of the Act. Effective Date January 1, 2010.


P.A. 96 – 0724 – SB 1560 – Creates the Industrialized Residential Structure Deed Restriction Act. Provides that a deed restriction may not prohibit the erection of a manufactured housing unit containing one or two dwelling units on real property provided the unit conforms to a model building code published by a model code organization. Further provides that aesthetic compatibility requirements are permitted. Effective Date January 1, 2010.

P.A. 96 – 0750 – HB 1142 – Creates the Modular Housing Buyer Protection Act. Provides that modular dwellings must comply with all state requirements. Approved units shall bear a yellow seal either on the electrical box or the inside of the kitchen sink cabinet. Unlike manufactured homes, local building codes may require additional items beyond the minimum State requirements.


P.A. 96 – 0122 – SB 207 – Amends the Property Tax Code (35 ILCS 200/12-30) to rewrite the instructions and content of the notice of changed assessments for counties of a population less than three million. The contents are too voluminous to note here. A copy of the Act should be obtained and read. Effective Date January 1, 2010.

P.A. 96 – 0231 – HB 212 – Amends the Property Tax Code (35 ILCS 200/21-355) to provide that if a petition for tax deed has been filed, the amount to redeem may include fees paid to a registered or licensed title insurance company or title insurance agent. Effective Date January 1, 2010.

P.A. 96 – 0324 – HB 4326 – Amends the Illinois Municipal Code (65 ILCS 5/11-74.4-8b) to permit the recapture of any benefits received under tax increment financing if the benefited project is abandoned or relocated. Effective Date January 1, 2010.

P.A. 96 – 0355 – HB 238 – Amends the Property Tax Code (35 ILCS 200/15-170) to add Assisted Living and Shared Housing Act to the Senior Citizens Homestead Exemption. Effective Date January 1, 2010.

P.A. 96 – 0522 – HB 3664 – Amends the Property Tax Code (35 ILCS 200/14-20) to allow any homestead exemption provided under Article 15 to qualify for a Certificate of Error. Effective Date August 14, 2009.

P.A. 96 – 0755 – HB 4120 – Amends the Property Tax Code (35 ILCS 200/18-184.5) to add a provision for the abatement of vacant facilities up to two years with the abatement not to exceed $4 million. Effective Date January 1, 2010.

P.A. 96 – 0779 – HB 4046 – Amends the Property Tax Code (35 ILCS 200/15-185) regarding to leaseback property and qualified leased property to be extended to municipalities contiguous to municipalities with a population in excess of 500,000. Effective Date August 28, 2009.


P.A. 96 – 0645 – SB 2111 – Adds a new section to the Title Insurance Act (215 ILCS 155/26) that provides the title insurance companies and title insurance agents must have “good funds” in order to disburse the proceeds of a closing. Effective Date January 1, 2010.


P.A. 96 – 0028 – SB 1923 – The Illinois Enterprise Zone Act (20 ILCS 655/5.5) is amended to add new wind power facilities generating electricity to the Act. Effective Date July 1, 2009.

P.A. 96 – 0306 – HB 3746 – The Counties Code (55 ILCS 5/5-12020) is amended to limit the maximum setback for renewable energy systems to 1.1 times its height. The Municipal Code (65 ILCS 5/11-13-26) is amended to the same extent. Effective Date January 1, 2010.


P.A. 96 – 0696 - HB 3716 – The Counties Code (55 ILCS 5/5-12001.1) is amended to provide for public hearings for zoning variations to be held at zoning or other appropriate committee meetings with proper notice. Effective Date January 1, 2010.

P.A. 96 – 0704 – SB 138 – Amends the Capital Development Board Act (20 ILCS 3105/10.09-1) to implement a state supervised procedure for building codes in jurisdictions where there is no local building code after July 1, 2011. Effective Date January 1, 2010.


James K. Weston

39859 S. Riverwood Dr.

Tucson, AZ 85739