Real Estate Law

(Smith, D-Chicago; Steans, D-Chicago) allows a governing board to adopt and amend rules and regulations (l) authorizing electronic delivery of notices and other communications required or contemplated by the Act to each unit owner who provides the association with written authorization for electronic delivery and an electronic address to which such communications are to be electronically transmitted; and (2) authorizing each unit owner to designate an electronic address or a U.S. Postal Service address, or both, as the unit owner’s address on any list of members or unit owners that an association is required to provide upon request. Effective January 1, 2015.

(Haine, D-Alton; Kosel, R-Mokena) allows an association to waive the current statutory requirement in its community instruments that a leasing unit owner must deliver a copy of a lease to the association. Effective January 1, 2015.

(Barickman, R-Bloomington; Sims, D-Chicago) makes several changes to the Illinois Transfer on Death Instrument Act. (1) Makes the recording of a notice of death affidavit a permissive action that can be taken by the beneficiary to confirm title to the residential real estate but is not a mandatory requirement to perfect title. (2) Allows a bona fide purchaser for value and without notice before the recordation of a lis pendens for an action to set aside or contest the transfer on death instrument ("TODI") to take free and clear of any such action or contest. (3) Clarifies that acceptance of the TODI by the beneficiary during the owner's lifetime is not a requirement. (4) Eliminates the right of an agent acting under a durable power of attorney from creating or revoking a TODI. But it doesn't affect the agent's right or power to sell, transfer, or encumber the residential real estate if so authorized under the POA. (5) Clarifies that only substantial compliance with the execution formalities is required. Effective January 1, 2015.

(Bivins, R-Dixon; Demmer, R-Dixon) expands the small estate affidavit (SEA) statute to include much more detailed information about the known debts of the decedent. Requires the affiant to sign under a notary public to aid in the enforcement of the civil and criminal penalties for misusing a SEA. Syncs up the SEA and the Safety Deposit Act. It applies to estates in which the decedent's date of death is on or after January 1, 2015.

(Mulroe, D-Chicago; Kelly Burke, D-Oak Lawn) provides that language barring certain agreements does not prohibit an agreement to subordinate a mechanics lien to a mortgage lien that secures a construction loan if that agreement is made after more than 50% of the loan has been disbursed to fund improvements to the property. Allows contractual provisions to be binding between the owner and contractor or a contractor and subcontractor that no lien or claim may be filed or maintained or that a contractor’s lien must be subordinated to the interests of any other party as long as it is not otherwise prohibited by this Act. Deletes language providing that the only admissible evidence of specified conditions of a contract as against a subcontractor or material supplier shall be proof of actual notice thereof to him or her before his or her contract is entered into. Deletes language providing that certain subordination provisions of contracts is not binding on the subcontractor unless set forth in its entirety in writing in the contract between the contractor and subcontractor or material supplier. Effective July 16, 2014.