Real Estate Law

Senate Bill 584

Topic: 
Administrative Review Law

(Barickman, R-Bloomington) provides a means for correcting inadvertent failures to correctly name necessary parties in actions for administrative review, which are called misnomers.

(1) It amends the Administrative Procedure Act (APA) to mandate that final administrative orders list all of the parties of record together with their last known address of record. The final order must also include whether there are any agency rules requiring a motion for reconsideration as a part of obtaining a reviewable final administrative decision and, if so, the rules citation. 

(2) It amends the ARL to prohibit an action for administrative review to be dismissed for lack of jurisdiction based on the misnomer of any agency that is properly served with summons issued in the action within the applicable time limits. It also prohibits dismissal for failure to perfectly name an agent if a timely action of administrative review has been filed that identifies the final administrative decision under review and makes a good faith effort to properly name the administrative agency.

(3) It amends the ARL to allow a court to correct misnomers for an erroneous identification of the administrative agency.

Senate Bill 584 passed out of Senate Judiciary Committee yesterday but will receive some tweaking amendments. 

Wells Fargo Bank, N.A. v. Maka

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2017 IL App (1st) 153010
Decision Date: 
Friday, February 3, 2017
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Affirmed.
Justice: 
REYES

After court entered judgment of foreclosure, Defendant argued that mortgage was void because original lender was not licensed at time loan was originated pursuant to Residential Mortgage License Act of 1987. There is no public policy requiring that mortgage contracts be held void when an entity is not licensed pursuant to the License Act. Thus, court properly entered judgment of foreclosure and order approving sale in mortgage foreclosure action. (GORDON and LAMPKIN, concurring.)

Blackstone Condominium Association v. Speights-Carnegie

Illinois Appellate Court
Civil Court
Condominiums
Citation
Case Number: 
2017 IL App (1st) 153516
Decision Date: 
Friday, February 3, 2017
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Affirmed.
Justice: 
ROCHFORD

Condo association filed forcible entry and detainer action against Defendant, alleging breach of contract, for failure to pay her condominium assessments. Court entered order for possession, and then entered judgment for Plaintiff. Unit was then foreclosed upon by bank. As condo association pursued contract theory of recovery, instead of statutory theory of recovery under Condominium Property Act or Forcible Entry and Detainer Act, it cannot avail itself of any attorney fee remedies permitted under those acts. As Plaintiff failed to identify any written instrument or contract providing for its recovery of attorney fees, court properly denied Plaintiff's petition for attorney's fees. (HOFFMAN and CUNNINGHAM, concurring.)

Jaworski v. Skassa

Illinois Appellate Court
Civil Court
Quiet Title
Citation
Case Number: 
2017 IL App (2d) 160466
Decision Date: 
Wednesday, February 1, 2017
District: 
2d Dist.
Division/County: 
DuPage Co.
Holding: 
Affirmed.
Justice: 
SCHOSTOK

Court properly dismissed, on grounds of res judicata, Plaintiff's claim to quiet title to a garage in her condominium complex. A final judgment was entered in forcible entry and detainer action, and there was identity of cause of action, as question of ownership was at issue in both cases, and court in forcible entry case concluded that Defendant had title to garage. No sanctions warranted for Plaintiff bringing appeal, as issues raised are not devoid of arguable merit.(HUDSON and SPENCE, concurring.)

The Bank of New York Mellon v. Laskowski

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2017 IL App (3d) 140566
Decision Date: 
Tuesday, January 31, 2017
District: 
3d Dist.
Division/County: 
Will Co.
Holding: 
Affirmed.
Justice: 
CARTER

Court properly denied LLC's motion to quash service of process in foreclosure action, as motion was untimely. Section 15-1505.6(a) of Foreclosure Law provides a 60-day time period for filing of a motion to quash service in foreclosure case. Statutory 60-day time period was not tolled while DWP was in effect.(WRIGHT, concurring; HOLDRIDGE, dissenting.)

Wing Street of Arlington Heights Condominium Ass’n. v. Kiss the Chef Holding, LLC

Illinois Supreme Court PLAs
Civil Court
Illinois Condominium Property Act
Citation
PLA issue Date: 
January 25, 2017
Docket Number: 
No. 120778
District: 
1st Dist.

This case presents question as to whether wholly owned subsidiary of mortagee that purchased condominium at foreclosure sale is considered “mortgagee” under section 9(g)(4) of Illinois Condominium Property Act, so that third-party who later purchased condominium from subsidiary becomes liable for payment of six months delinquent assessments. Trial court found that defendant, as third-party purchaser of condominium from subsidiary, was not liable for any past due assessments. Appellate Court, in reversing trial court, found that instant subsidiary was “mortgagee” since it was acting on Bank’s behalf at judicial sale, thus triggering defendant’s obligation to pay assessments during six months preceding plaintiff-association’s action to enforce its lien. In its petition for leave to appeal, defendant argued that there was no evidence establishing that subsidiary was designated to act on behalf of Bank at foreclosure sale.

House Bill 723

Topic: 
Real Estate Appraisal Fees Article of the Residential Real Property Disclosure Act

(Rita, D-Blue Island) provides that in any residential real estate closing document in which real estate appraisal fees are shown, the fee paid to an appraiser must be shown separately from the fee paid to an appraisal management company. House Bill 723 was just introduced. 

Senate Bill 584

Topic: 
Administrative Procedure Act

(Barickman, R-Bloomington) provides a means for correcting inadvertent failures to name necessary parties in actions for administrative review.

(1) It amends the Administrative Procedure Act (APA) to mandate that final administrative orders list all of the parties of record together with their last known address of record. The final order must also include whether there are any agency rules requiring a motion for reconsideration as a part of obtaining a reviewable final administrative decision and, if so, the rules citation. 

(2) It also amends the APA to allow service by electronic mail if agreed to by the parties in contested cases.  

(3) It amends the Administrative Review Law (ARL) in the Code of Civil Procedure to state that this Article is to be liberally construed in the interests of justice to grant an orderly method of judicial review of administrative agency decisions.

(4) It amends the ARL to prohibit an action for administrative review to be dismissed for lack of jurisdiction based on the misnomer of any agency that is properly served with summons issued in the action within the applicable time limits. It also prohibits dismissal for failure to perfectly name an agent if a timely action of administrative review has been filed that identifies the final administrative decision under review and makes a good faith effort to properly name the administrative agency.

(5) It amends the ARL to allow a court to correct misnomers for an erroneous identification of the administrative agency.

Senate Bill 584 was just introduced.

 

Senate Bill 9

Topic: 
Business Opportunity Tax Act

(Hutchinson, D-Chicago Heights) creates the Business Opportunity Tax that imposes a tax on all entities that issue a Form W-2 or a Form 1099 to a resident of Illinois. It imposes a sliding scale of taxation based on the employer’s total Illinois payroll as follows. (1) if the taxpayer’s total Illinois payroll for the taxable year is less than $100,000, then the annual tax is $225; (2) if the taxpayer’s total Illinois payroll for the taxable year is $100,000 or more but less than $250,000, then the annual tax is $750; (3) if the taxpayer’s total Illinois payroll for the taxable year is $250,000 or more but less than $500,000, then the annual tax is $3,750; (4) if the taxpayer’s total Illinois payroll for the taxable year is $500,000 or more but less than $1,500,000, then the annual tax is $7,500; and (5) if the taxpayer’s total Illinois payroll for the taxable year is $1,500,000 or more, then the annual tax is $15,000.

The following are exempt from taxation under this Act: (1) governmental employers described in Section 707 of the Illinois Income Tax Act; and (2) not-for-profit corporations that are exempt from taxation under Sections 501(c) or 501(d) of the Internal Revenue Code or organized under the General Not For Profit Corporation Act of 1986. Senate Amendment No. 2 becomes the bill and was just filed. It is part of the “grand bargain” being attempted by Senate leaders.