Real Estate Law

Senate Bill 3052

Topic: 
Contractor Prompt Payment Act

(Mulroe, D-Chicago; Arroyo, D-Chicago) authorizes a retainage of 10% of the payment may be withheld from a payment under a construction contract before the completion of 50% of the contract. After 50% of the contract is completed, the amount of retainage for any later payment may not exceed 5%. Passed both chambers. 

Sylva, LLC v. Baldwin Court Condominium Association, Inc.

Illinois Appellate Court
Civil Court
Foreclosure
Citation
Case Number: 
2018 IL App (1st) 170520
Decision Date: 
Monday, June 4, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div,
Holding: 
Reversed and remanded.
Justice: 
GRIFFIN

Plaintiff bought condominium unit a a judicial foreclosure sale.  Condominium Property Act does not require a condo association to file suit against prior owner to collect unpaid assessments from foreclosure buyer. A condo association is entitled to up to 6 months of unpaid assessments dating from the time the Association took requisite action to enforce its right to collect back assessments from foreclosure buyer, pursuant to Section 9(g)(4) of the Act.(PIERCE and MIKVA, concurring.)

House Bill 4711

Topic: 
Zoning violations

(Breen, R-Lombard; Curran, R-Woodridge) amends the Counties Code, the Municipal Code, and the Township Code affecting provisions regarding building or structure zoning violations. Prohibits any suit against a unit of government or its officials for any act relating to zoning administration, enforcement, or implementation or any ordinance, resolution, or other zoning regulation. Makes an exception for property owned by the unit of government. Passed both chambers. 

Senate Bill 2309

Topic: 
Trust and Trustees Act

(Mulroe, D-Chicago; Welch, D-Westchester) deletes language requiring that a conveyance of real property to a trust include evidence of acceptance by the trustee and deletes language providing that if the transferor is a trustee of the trust, an interest in real property does not become trust property unless the instrument of conveyance is recorded in the office of the recorder of the county in which the property is located. Passed both chambers. 

Senate Bill 2432

Topic: 
Service of summons and foreclosure

(Mulroe, D-Chicago; Martwick, D-Chicago) amends the Code of Civil Procedure to provide that the court’s jurisdiction is not affected by a technical error in format of a summons if the summons has been issued by a clerk of the court, the person or entity to be served is identified as a defendant on the summons, and the summons is properly served. If a petition is filed to reopen a foreclosure proceeding, the purchaser or successor purchaser of real property who was not a party to the mortgage foreclosure action is entitled to remain in possession of the property  until the foreclosure action is defeated or the previously foreclosed defendant redeems from the foreclosure sale if the purchaser has been in possession of the property for more than six months. Actions for the recovery of real property following a foreclosure must be brought within two years after possession is taken. Every person in the actual possession of lands or tenements as a purchaser following a foreclosure is adjudged to be the legal owner of the lands or tenements if for two successive years continues in possession and pays all taxes legally during that time.

 

Amends the Mortgage Rescue Fraud Act to provide that it is a violation for a distressed property consultant to, among other things, enter into, enforce, or act upon any agreement with a foreclosure defendant, whether the foreclosure is completed or otherwise, if the agreement provides for a division of proceeds between the foreclosure defendant and the distressed property consultant derived from litigation related to the foreclosure. 

 

Passed both chambers. 

BMO Harris Bank, N.A. v. Porter

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2018 IL App (1st) 171308
Decision Date: 
Friday, June 1, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div,
Holding: 
Affirmed.
Justice: 
HALL

Court properly granted bank's motion to strike and dismiss Defendants' 3rd amended counterclaim with prejudice. Bank's acceptance of Defendants' payments from 2011-14 was only an act of leniency and was not an offer, Defendants failed to show that there was a valid offer of a 20-year loan initially or that there was an offer to extend terms of loan. Defendants failed to establish any allegation of consideration. According to terms of original loan documents, bank was already authorized to charge 6-18% interest for installments due under credit agreement. Payments alleged in Defendants' motion to reconsider were not additional interest providing consideration for alleged extension agreement. (LAMPKIN and ROCHFORD, concurring.)

Buying Foreclosed Condominiums: The Risk of Unpaid Assessments

By Julianne M. Dailey
June
2018
Article
, Page 38
Despite the common belief that all prior liens are extinguished by foreclosure, condominium purchasers may learn they're liable for unpaid assessments. What's more, murky caselaw makes advising clients a challenge.