Construction Law

(Lang, D-Skokie) Provides that a county recorder may establish a “review index” and procedures for investigating filings that would cause the recorder to reasonably believe that the filing may be fraudulent, unlawfully altered, or intended to unlawfully cloud or transfer the title of any real property. Provides for the following: (1) the filing of a notice sheet regarding a suspected fraudulent filing; (2) criteria that a recorder may rely upon to identify a filing as appropriate to be placed in the review index; (3) notification requirements of a recorder's determinations regarding a filing; (4) procedures for removal of a filing from the review index; (5) administrative review of a recorder's determination; (6) priority of filing; and (7) fees associated with filing a deed or instrument that is determined to be fraudulent. Immunizes the recorder or the recorder’s employees or agents for any omission or error under this new Section. It applies to documents only filed after the effective date. On second reading in the House.

(Collins, D-Chicago) does four things in the mortgage foreclosure article. (1) Allows the landlord terminate a tenancy established before the confirmation of sale only (a) at the end of the term of the lease agreement by written notice issued not earlier than 90 days before the end of the term of the lease; or (b) in the case of a month-to-month or week-to-week tenancy, by 90 days' written notice. (2) Entry of a judgment of foreclosure does not terminate or otherwise affect the rights or interest of any occupant of a dwelling unit who has a lease or tenancy resulting from an arm's-length transaction and who is not the mortgagor, whether or not the occupant has been made a party in the foreclosure. (3) The holder of the certificate of sale, the holder of the deed issued under that certificate, or if no certificate or deed was issued, the purchaser at the sale shall: (a) assume the lease or tenancy of the mortgaged real estate resulting from an arm's length transaction entered into before the confirmation of sale; (b) assume any federal, state, or local housing subsidy contract for the dwelling unit for the duration of the contract or the assumed lease, whichever is shorter; (c) assume his or her interest in the mortgaged real estate subject to the rights of any occupant; and (d) not terminate the occupancy or any occupant's tenancy except as otherwise provided in the Code. (4) Requires the purchaser who offers money or other valuable consideration to an occupant of a dwelling unit as an incentive to vacate the premises to tender the offer in accordance with specified conditions. Just introduced.

(Delgado, D-Chicago) authorizes the Department of Labor to establish administrative procedures to adjudicate claims of any amount. The current cap limiting the Department's authority to claims of $3,000 or less is repealed. Just introduced.

(Trotter, D-Chicago; Harris, D-Chicago) creates a $10 fee to be paid by civil litigants who file an appearance and defendants who are convicted or plead guilty to any felony, misdemeanor, traffic, municipal, or conservation offense to pay for the Supreme Court E-Business Plan. The E-Business Plan is to develop and maintain an automated point-of-access case and statistics management system. It will will include applications for e-filing, e-guilty, and e-signatures as well as trial court and probation data exchanges. Senate Bill 1746 is scheduled for hearing in House Judiciary Committee on Sunday, Jan. 6, 2013.

(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 for improvements. 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. It has an immediate effective date. House Bill 3636 is in the House awaiting concurrence on Senate Amendment No. 2.

(Collins, D-Chicago; Lyons, D-Chicago) creates an expedited judgment and sale procedure for abandoned residential property. An additional filing fee will be imposed on plaintiffs in a tiered system in which the fees increase in proportion to the number of foreclosures a plaintiff prosecutes. The fees will also pay for "housing counseling" for residents who are going through the foreclosure process in effort to help them save their homes. Clarifies that a portion of the Conveyances Act is permissive instead of mandatory to prevent that portion of the Act from affecting the validity of a properly recorded mortgage by a trustee in bankruptcy. House Amendment 8 becomes the bill and is positioned to move during this veto session.

(Mulroe, D-Chicago; Lang, D-Skokie) carves out an exception to the prohibition against a title insurance company, title insurance agent, or independent escrowee making disbursements in connection with any escrows, settlements, or closings out of a fiduciary trust account or accounts. The exception that Senate Bill 3180 creates is if the funds are good funds and the title insurance company, title insurance agent, or independent escrowee and the financial institution are known to each other and agree to the use of these funds. Passed the Senate this spring and scheduled for a hearing Tuesday in House Executive Committee.