Real Estate Law

Public Act 98-764

Topic: 
Strict foreclosure of an omitted subordinate interest
(Mulroe, D-Chicago; Nekritz, D-Buffalo Grove) creates a procedure for the holder of title from a judicial sale to foreclose and clear title on an “omitted subordinate interest.” An OSI is a junior lienholder that was not made a party defendant in the previous foreclosure action and whose OSI was not terminated by the judgment of foreclosure when the property was sold by judicial sale. If the junior lienholder wishes to redeem, it must do so within 30 days after entry of the order redeeming title. The redemption sum will include the bid at the prior foreclosure sale, any costs and fees incurred after the sale for the payment of taxes, preservation of the property, or any other actions by the holder of the certificate of sale required to protect its interest in the property. The redemption amount will not include any costs or fees incurred by the holder of title that filed the strict foreclosure case. Effective July 16, 2014. Editor's Note: This is incorrect; the text of this bill is on the Governor's desk but he has taken no action on it yet. The text above relates to Senate Bill 2730. Therefore, Senate Bill 2730 is not a public act. My apologies.

Knight v. Enbridge Pipelines (FSP) LLC

Federal 7th Circuit Court
Civil Court
Easements
Citation
Case Number: 
No. 13-3481
Decision Date: 
July 16, 2014
Federal District: 
C.D. Ill.
Holding: 
Affirmed and vacated in part
Dist. Ct. did not err in dismissing plaintiffs-landowners’ action seeking to quiet title on 1952 easement given to defendants to construct second underground pipeline across plaintiffs’ property. Instant easement granted defendants right to build second pipeline within 10 feet of first pipeline, and Ct. rejected plaintiff’s claims that said right had expired or that Rule Against Perpetuities applied to instant easement. Ct also rejected as speculative plaintiffs’ claim that proposed pipeline would be incompatible with existing surface farming.

Feliciano v. Geneva Terrace Estates

Illinois Appellate Court
Civil Court
Easements
Citation
Case Number: 
2014 IL App (1st) 130269
Decision Date: 
Wednesday, June 25, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Affirmed.
Justice: 
HYMAN
Plaintiffs filed declaratory judgment action seeking declaratory judgment that there was no enforceable driveway easement between the vacant lot they purchased and adjoining lot. Court properly granted summary judgment for Plaintiffs, concluding that no driveway easement had been created, as there was no evidence of driveway easement in later filed association declarations, which include extensive description of other easements in planned development but do not mention this specific driveway easement. Court properly granted summary judgment for Defendants on alleged breach of fiduciary duties and indemnification. Plaintiffs failed to present sufficient facts for finding of breach of fiduciary duties or that breach was proximate cause of their damages, and proximate cause could not be shown, as a matter of law.(NEVILLE and PUCINSKI, concurring.)

House Bill 5322

Topic: 
Condominiums and common-interest communities
(Burke, D-Evergreen Park; Raoul, D-Chicago) amends the two acts that govern condos and common-interest communities so that communication may include “electronic transmission” for differing purposes under the two Acts. It creates procedures to do this that also require consent of the unit owner. It also prohibits secret ballots in elections for common-interest communities. Sent to the Governor.

Butler v. Harris

Illinois Appellate Court
Civil Court
Fraud
Citation
Case Number: 
2014 IL App (5th) 13-0163
Decision Date: 
Friday, June 27, 2014
District: 
5th Dist.
Division/County: 
Madison Co.
Holding: 
Affirmed in part and reversed in part; remanded with directions.
Justice: 
GOLDENHERSH
Plaintiff homebuyers sued sellers for fraud and violations of Residential Real Property Disclosure Act, alleging failure to disclose septic system defects. Proper standard of proof to determine violations of Disclosure Act is clear and convincing evidence. Court properly found for Defendants on fraud count, as evidence as a whole suggested no reliance or no reasonable reliance. Court properly found for Defendants on Disclosure Act count, as evidence as to Defendants' knowledge was insufficient. Defendants are not entitled to attorney's fees, as Plaintiffs' suit was not meritless; two witnesses testified that Defendants should have been aware of problems with septic system. (WELCH and CATES, concurring.)

Bank of America, N.A. v. Kulesza

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2014 IL App (1st) 132075
Decision Date: 
Friday, June 27, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Affirmed.
Justice: 
McBRIDE
Section 2.03(1) of Collection Act exempting banks from the Act's requirements is not limited to first-tier subsidiaries of banks. BAC Home Loans Servicing, the original plaintiff in foreclosure action, was owned by entities that were subsidiaries of Bank of America. Court may take judicial notice that other judicial decisions have recognized that BAC is a subsidiary of Bank of America and is thus exempt from Collection Act. (GORDON and PALMER, concurring.)

Property Tax Sales and Bankruptcy after Alexandrov v. LaMont

By Andrew J. Hawes
July
2014
Article
, Page 346
The seventh circuit recently held that a homeowner debtor can extend the deadline to redeem property sold at a tax sale by declaring Chapter 13 bankruptcy. Find out what it means.

Financial Freedom Acquisition, LLC v. Standard Bank and Trust Company

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2014 IL App (1st) 120982
Decision Date: 
Friday, June 13, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Affirmed.
Justice: 
REYES
Plaintiff filed mortgage foreclosure action, for adjustable rate home equity conversion martgage, which was a type of reverse mortgage insured by HUD, against bank, and bank filed counterclaim against Plaintiff alleging violations of Truth in Lending Act (TILA), seeking damages and rescission of loan transaction. Court properly dismissed counterclaim with prejudice. Bank is not entitled to rescission of loan transaction because it is not an obligor, as bank executed exculpatory clause expressly disclaiming any obligation under the note. TILA provides right of rescission only to the obligor of consumer credit transaction. (LAMPKIN, concurring; GORDON, dissenting.)

Goldberg v. 401 North Wabash Venture LLC

Federal 7th Circuit Court
Civil Court
Condominiums
Citation
Case Number: 
No. 13-3057
Decision Date: 
June 10, 2014
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Record contained sufficient evidence to support jury’s verdict in favor of defendant in action under Ill. Consumer Fraud and Deceptive Business Practices Act, where plaintiff-owner of condominium units alleged that defendants-sellers of said units improperly used “bait and switch” tactic to convince plaintiff to purchase said units by promising plaintiff certain access to hotel facilities in condominium building and then subsequently taking away plaintiff’s use of said facilities pursuant to “change clause” contained in purchase agreement and other condominium documents. Defendant presented plausible evidence explaining that instant change was based on defendant’s hiring of new employee, who believed that plaintiff and others might mismanage said hotel facilities. Moreover, plaintiff could not establish viable breach of contract action where applicable terms of purchasing agreement allowed defendant make instant change, and where any implied duty of good faith could not modify express terms of agreement. Also, plaintiff could not establish viable claim under Ill. Securities Law, where instant agreement involving purchase of condominium did not constitute “investment contract”/security under Ill. law.