Real Estate Law

Senate Bill 1134

Topic: 
Foreclosure service by publication

(Harmon, D-Oak Park; Bristow, D-Alton) allows service by publication for foreclosure if the defendant resides outside of or has left the State, on due inquiry cannot be found, is concealed within the State so that process cannot be served upon him or her, or that the place of residence of the defendant cannot be ascertained. If the defendant’s residence is known, that must be alleged in the plaintiff’s affidavit seeking service by publication. Publication must be made in some newspaper published in the county in which the action is pending or, under certain circumstances, in a newspaper published in an adjoining county. Requires the clerk to send a copy by mail addressed to each defendant whose place of residence is stated in the affidavit within 10 days of the first publication of the notice. 

Passed both chambers. Effective January 1, 2020 if the Governor signs the bill into law. 

Senate Bill 181

Topic: 
Post-judgment changes

(Mulroe, D-Chicago; Martwick, D-Chicago) makes the following changes to post-judgment proceedings. (1) Provides that a judgment creditor is entitled to prosecute citations to discover assets (instead of supplementary proceedings) for the purposes of examining the judgment debtor or any other person. (2) Deletes language providing that it is not a prerequisite to the commencement of a supplementary proceeding that a certified copy of the judgment has been returned wholly or partly unsatisfied. (3) Provides that summons shall be returnable not less than 21 nor more than 40 days (rather than 30 days) after the date of issuance. (4) Provides that summons shall be served with one copy (rather than four copies) of the interrogatories and that a summons shall be served in the same manner as provided by the Illinois Supreme Court Rule for additional relief on a party in default.

Passed both chambers and takes effect immediately if the Governor signs it into law. 

House Bill 88

Topic: 
Consumer debt and collections

(Guzzardi, D-Chicago; Martinez, D-Chicago) provides that a “consumer debt judgment” of $25,000 or less draws interest at the rate of 5% per annum. A consumer debt judgment may be revived by filing a petition to revive the consumer debt judgment no later than 10 years after its entry. If a judgment or consumer debt judgment becomes dormant during an enforcement proceeding against wages, the enforcement may continue to conclusion if the enforcement is done under court supervision and includes a wage-deduction order or turn-over order and is against an employer, garnishee, or other third party respondent.

Passed both chambers. If signed into law by the Governor, it will take effect on January 1, 2020 and applies to all consumer debt judgments entered into after this date.

House Bill 3677

Topic: 
Uniform Partition of Heirs Property Act

(Didech, D-Highwood; Crowe, D-Wood River) amends the Illinois Partition Act to create a new set of procedures regulating the partition of property held in tenancy in common by one or more cotenants who are related or who acquired an interest in the property from a person related to the tenant by blood, marriage, or adoption.  The Act applies only if one or more of the following conditions exist:

(1) 20 percent or more of the interests are held by cotenants who are related; (2)  20 percent or more of the interests are held by an individual or related entity who acquired title from a relative during the relative’s life or at death; or (3) 20 percent of the cotenants are relatives.

If the Act applies, the court is required to determine the fair market value of the property and give the cotenants who do not seek a partition of the property by sale the opportunity to purchase the interest of any cotenant who seeks to partition the property by sale. If no cotenant purchases the property and the property is not susceptible to being partitioned in kind, the Act provides the method by which the property is to be sold and costs apportioned.

Passed both chambers.

House Bill 2643

Topic: 
Home Repair and Remodeling Act

(Mason, D-Gurnee; Bush, D-Grayslake) provides that a consumer age 65 and older has 15, rather than three, business days within which to cancel a contract if the sale is made at the consumer’s home. Limits this 15-day right of cancellation to purchases made from an uninvited solicitor. Passed both chambers. 

 

 

Senate Bill 75

Topic: 
Workplace Transparency Act

(Bush, D-Grayslake; Ann Williams, D-Chicago) prohibits an employer from requiring an employee or prospective employee as a precondition of employment to enter into an agreement or waiver that (1) prevents him or her from disclosing alleged unlawful employment practices, including sexual harassment, discrimination or retaliation; or (2) requires him or her to waive, arbitrate, or otherwise diminish any future claim related to unlawful employment practices. Voids any agreement or waiver to the extent it denies a substantive or procedural right or remedy. 

It does allow the parties to enter into: (1) an agreement or waiver if mutually agreed to and complies with certain disclosure and reporting requirements; and (2) a valid and enforceable confidential settlement agreements related to alleged unlawful employment practices if the parties comply with certain requirements designed to protect the employee and prospective employee. Provides for attorney’s fees and costs for a violation of the Act.

Amends The Human Right Act by defining “harassment” and prohibiting harassment and sexual harassment of nonemployees in the workplace. Holds the employer responsible for harassment or sexual harassment of nonemployees under certain conditions. Amends unlawful discrimination to be what is “actual or perceived” in the context of race, color, religion, national origin, ancestry, age, sex, marital status, order of protection status, disability, military status, sexual orientation, pregnancy, or unfavorable discharge from the military. Expands “working environment” to be outside of the physical location to which an employee is assigned to perform their duties. Creates employer disclosure requirements regarding settlements of such claims. Requires the Illinois Department of Human Rights to develop a model sexual harassment prevention training program and to make it available to employers online at no cost. Every employer must use the model created or develop their own that must be the same or better than the Department’s and train their employees on a yearly basis subject to civil penalties for non-compliance. Provides for additional training and safety measures for employees of restaurants and bars to be available in English and Spanish.   

Amends The Victims’ Economic Security and Safety Act to define “gender violence” and include it as an entitlement for leave from employment that currently includes only domestic violence and sexual violence. 

Passed both chambers. Effective January 1, 2020. 

A Better Approach to Installment Contracts

By Gary R. Gehlbach
June
2019
Article
, Page 28
The inherent disadvantages of a traditional installment contract for deed are overcome by restructuring the transaction as an outright sale with seller-provided, purchase-money financing.

Edson v. Fogarty

Illinois Appellate Court
Civil Court
Consumer Fraud and Deceptive Business Practices Act
Citation
Case Number: 
2019 IL App (1st) 181135
Decision Date: 
Tuesday, May 14, 2019
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div,
Holding: 
Affirmed in part and reversed in part; remanded.
Justice: 
HYMAN

Defendant, a real estate broker, listed space in condominium building as a nonexistent zoning designation, supposedly commercial, and told Plaintiff that space could host a grocery store. After Plaintiff purchased the space, he learned it had been zoned residential. Court erred in granting summary judgment for Defendant on Consumer Fraud Act and Real Estate License Act claims, as those claims do not require proof of reliance. Court erred in granting summary judgment on negligent misrepresentation and common law fraud claims, as Defendant made material misrepresentations of fact, and not of law. Plaintiff may ask the trial court to reconsider its interlocutory order barring his damages evidence. (LAVIN and PUCINSKI, concurring.) 

Deutsche Bank National Trust Co. v. Sedys

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2019 IL App (2d) 18088
Decision Date: 
Friday, May 10, 2019
District: 
2d Dist.
Division/County: 
Du Page Co.
Holding: 
Affirmed.
Justice: 
BIRKETT

Court entered default judgments of foreclosure. Defendants argued that judgments were void because record does not reflect that court clerk mailed Defendants a copy of the published notice at address listed in affidavit that Plaintiff prepared in support of service by publication. Records on appeal are insufficiently complete to support Defendants' claims of error. The absence of a clerk's certificate from the record does not, of itself, show a failure to comply with mailing requirement of Section 2-206(a) of Code of Civil Procedure, as proof of mailing may take the form of other documentary evidence and testimony. (ZENOFF and BURKE, concurring.)

Lobo IV, LLC v. V Land Chicago Canal, LLC

Illinois Appellate Court
Civil Court
Real Estate Contract
Citation
Case Number: 
2019 IL App (1st) 170955
Decision Date: 
Thursday, March 21, 2019
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div,
Holding: 
Affirmed in part and reversed in part; remanded.
Justice: 
GORDON

Consolidated appeals arising form court order granting specific performance on 2 real estate purchase contracts in which, after bench trial, court found that Plaintiffs were entitled to purchase properties pursuant to purchase contracts and entitled to monetary damages. In later proceedings, court found that intervenor bank had issued several mortgages on properties that had priority over purchase contracts. Plaintiffs were entitled to specific performance of contracts at the lowered purchase price and entitled to damages caused by Defendant's delay in performing. Plaintiffs did not terminate this right by failing to close on the court-set closing date, where  an objectionable pro forma title policy was presented on day of closing. Intervenor's mortgages had priority over Plaintiffs' interest based on doctrine of conventional subrogation. Extent of subrogation was limited to amounts of construction loans. Purchase price should have been abated to full extent of Plaintiffs' judgment against Defendant. (REYES and BURKE, concurring.)