Real Estate Law

Rhone v. First American Title Insurance Company

Rhone v. First American Title Insurance Company
Illinois Appellate Court
Civil Court
Property Taxes
Liens
Citation
Case Number: 
No. 1-09-1216
Decision Date: 
Monday, May 17, 2010
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Affirmed.
Justice: 
GARCIA
Plaintiffs sued title insurance company for declaration that title policy for townhome they bought in 2006 covered unassessed property taxes for 2004 and 2005. Unassessed property taxes did not constitute liens or encumbrances until bills for those unassessed taxes were issued in 2008, which was after the effective date of the title insurance policy, and were thus not covered by title policy. Plaintiffs had knowledge that townhome had been wrongly assessed as vacant land from 2004 to 2006, and could have altered proration agreement to include sellers' liability for additional taxes upon reassessment.

Senate Bill 3747

Topic: 
Transfer Fee Covenant Act
(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.
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Senate Bill 3180

Topic: 
Common Interest Community Association Act
(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.
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American Land Holdings of Indiana, LLC v. Jobe

Federal 7th Circuit Court
American Land Holdings of Indiana, LLC v. Jobe
Civil Court
Property
Citation
Case Number: 
No. 09-3151 & 09-3265 Cons.
Decision Date: 
May 6, 2010
Federal District: 
S.D. Ind., Terre Haute Div.
Holding: 
Affirmed
Dist. Ct. did not err in finding for defendants-landowners in action seeking declaration that plaintiff has right to use strip-mine coal process on defendants' land pursuant to 1903 deed granting plaintiff all coal and mineral rights underlying defendants' land, but restricting plaintiff's ability to extract coal in certain areas of said land. Dist. Ct. could properly find that language in deed was ambiguous with respect to plaintiff's right to use strip-mine coal process and could properly receive extrinsic evidence to conclude that plaintiff's right to extract coal was limited to underground mining process. Ct. also found that rule against perpetuities applied to bar instant right to use strip-mine coal process since plaintiff sought to invoke said right more than 21 years after said right had vested in 1903.

The Terraces of Sunset Park v. Chamberlin

The Terraces of Sunset Park v. Chamberlin
Illinois Appellate Court
Civil Court
Real Estate Contract
Citation
Case Number: 
No. 2-09-0269
Decision Date: 
Wednesday, April 28, 2010
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Affirmed.
Justice: 
McLAREN
Parties entered written agreement for purchase of property for $1.75 million, with $50,000 to be paid when agreement signed, and $50,000 on certain date as down payment, but if down payment not made, then initial payment forfeited and transaction void; and if property not closed on certain date, payments forfeited and transaction void. Even though agreement used term "sale contract" and not "option", implications of agreement's terms were clearly those of option, not of sale. Option contract is not subject to Residential Real Property Disclosure Act.

House Bill 5224

Topic: 
Tenants Radon Protection Act
(Reitz, D-Sparta) creates the Tenants Radon Protection Act. Requires a landlord to provide a tenant any records of radon concentration within the dwelling unit that present a radon hazard to the tenant. Applies to tenants in a dwelling unit on or below the third floor of a single-family residence, each living unit of a multiple family residence, and each living unit in a mixed-use building. Makes other changes. It is on the order of first reading in the Senate after passing the House.
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Senate Bill 3747

Topic: 
Transfer Fee Covenant Act
(Wilhelmi, D-Joliet) 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. 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. Scheduled for hearing on Tuesday in Senate Judiciary Committee.
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