Real Estate Law

DLJ Mortgage Capital, Inc. v. Frederick

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2014 IL App (1st) 123176
Decision Date: 
Tuesday, May 27, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed.
Justice: 
HARRIS
Court properly granted summary judgment in favor of Plaintiff on foreclosure complaint. Although Defendant alleged that sale was unconscionable because she was misled about date of confirmation sale, nothing in record shows that sale was to take place at another date or that Defendant was misled into thinking sale would be continued. Argument of allegedly meritorious defense to underlying foreclosure judgment is insufficient once trial court enters order confirming judicial sale. (PIERCE and LIU, concurring)

House Bill 5395

Topic: 
Evictions
(Monique Davis, D-Chicago) amends the Forcible Entry and Detainer section of the Code of Civil Procedure to do three things. (1) Limits the number of motions a tenant may file to stay the enforcement of an order for possession to two unless good cause is shown by written motion. (2) Allows a "peace officer" to execute an order for possession. (3) Also allows service of an order of possession by an off-duty peace officer who is employed on a part-time basis by a licensee under the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004. In the House on third reading.

US Bank v. Avdic

Illinois Appellate Court
Civil Court
Foreclosure
Citation
Case Number: 
2014 IL App (1st) 121759
Decision Date: 
Friday, May 2, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Affirmed.
Justice: 
PALMER
Court properly entered order confirming judicial sale of property in foreclosure action. Bank complied with Section 15-1504 of Foreclosure Law in its foreclosure complaint and set forth required information, and established that, as holder of note, it was also holder of mortgage and thus had standing. Bank employee's affidavit was sufficient to comply with Rule 191, as she stated that payment histories were made in regular course of Bank's business, and entries were made at or near time of occurrence. (GORDON and TAYLOR, concurring.)

Edelman v. Belco Title & Escrow, LLC

Federal 7th Circuit Court
Civil Court
Real Estate
Citation
Case Number: 
No. 13-2363
Decision Date: 
April 25, 2014
Federal District: 
S.D. Ill.
Holding: 
Affirmed
Dist. Ct. did not err in granting motion for summary judgment by defendant-title insurance company/escrowee in action alleging that defendant violated fiduciary duty owed to plaintiffs-lenders in real estate transaction by failing to inform plaintiffs that they were not going to receive first priority mortgage that had been promised to them by third-party/real estate developer in loan agreement between plaintiffs and third-party. Defendant owed plaintiffs duty only to comply with terms of escrow agreement calling for disbursement of closing costs and did not have any principal-agent relationship with plaintiffs with respect to loan agreement where: (1) defendant was not party to said loan agreement; (2) plaintiffs had disbursed loan proceeds to third-party before defendant had become involved in instant transaction; and (3) loan proceeds were never placed in escrow with defendant. Ct. also rejected plaintiffs’ contention that defendant had duty to ask plaintiffs whether they still wanted to proceed with loan transaction even if plaintiffs would only receive junior mortgage on real estate used to secure said loan.

House Bill 4204

Topic: 
Condominiums and common-interest communities
(Nekritz, D-Buffalo Grove) creates the Condominium and Common-Interest Community Ombudsperson Act. It creates a state office entitled the Office of the Condominium and Common-Interest Community Ombudsperson within the Department of Financial and Professional Regulation. After July 1, 2017, the ombudsperson shall offer training, educational materials, and courses to unit owners, associations, board of managers, and boards of directors in subjects relevant to the operation and management of condominiums and common interest communities and the respective Acts under each. It requires each association to adopt a written policy for resolving complaints made by unit owners. Unit owners may make a written request under this Act to the ombudsperson for assistance in resolving a dispute between a unit owner and an association that involves a violation of either the Condominium Property Act or the Common-Interest Community Property Act. The assistance of the section is available only to unit owners. The department must promulgate a rule assessing nonrefundable fees for the administration and enforcement of this act. House Bill 4204 passed the House on a 60-38 vote and is now in the Senate.

Senate Bill 1048

Topic: 
Presumptively void transfers in probate
(Harmon, D-Oak Park) creates a new section in the Probate Act entitled “presumptively void transfers.” It applies to caregivers who, either as a result of family relationship, voluntarily, or in exchange for compensation, have assumed responsibility for all or a portion of the care of another person who needs assistance with activities of daily living. It applies to “transfer instruments” that includes a will, trust, deed, form designated as payable on death, contract, or other beneficiary designation form. It presumes, with some exceptions, that a transfer instrument is presumed to be void if the transferee is a caregiver, or a person related to a caregiver, and the fair market value of the transferred property exceeds $20,000. It has some exceptions, which are as follows: (1) if the transferee establishes by clear and convincing evidence that the transfer was not the product of fraud, duress, or undue influence. But it prohibits the court from making that determination solely upon the testimony of the caregiver. (2) If the transfer instrument was reviewed by an “independent attorney” who signs and delivers a statutory certificate of review. (3) If the transferee’s share under the transfer instrument is less than the share the transferee was entitled to under the transferor’s testamentary plan in effect before the transferee became a caregiver. If the caregiver attempts and fails to overcome the presumption under this section, the caregiver must bear the cost of the proceedings, including, without limitation, reasonable attorney’s fees. Assigned to Senate Judiciary Committee.

GMAC Mortgage, LLC v. Arrigo

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2014 IL App (2d) 130938
Decision Date: 
Friday, April 4, 2014
District: 
2d Dist.
Division/County: 
Du Page Co.
Holding: 
Certified question answered.
Justice: 
JORGENSEN
A spouse may not claim her homestead exemption when that spouse is not on title to the property but is spouse of title holder and maintains the property as her primary place of residence under Section 12-901 of Code of Civil Procedure. (HUDSON and BIRKETT, concurring.)

Kelly v. Orrico

Illinois Appellate Court
Civil Court
Contracts
Citation
Case Number: 
2014 IL App (2d) 130002
Decision Date: 
Monday, March 31, 2014
District: 
2d Dist.
Division/County: 
Du Page Co.
Holding: 
Reversed.
Justice: 
HUTCHINSON
Parties, who were friends living two doors apart, entered into contract for Defendants to purchase Plaintiffs' home, and Plaintiffs filed suit, alleging breach of contract, as Defendants failed to close on purchase on date set for closing. Plaintiffs did not allege anticipatory repudiation; thus, any proof submitted to support that theory was defective, and court erred in finding for Plaintiffs on that basis. Evidence at trial did not show that Defendants had clearly and unequivocally repudiated their contract, as Plaintiffs had, subsequent to their agreement to sell to Defendants, listed home for sale, placed a for-sale sign in their yard, and entered into contract with other buyers.(McLAREN and SPENCE, concurring.)

Van Pelt Construction Company, Inc. v. BMO Harris Bank, N.A.

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2014 IL App (1st) 121661
Decision Date: 
Thursday, March 27, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div.
Holding: 
Reversed and remanded.
Justice: 
LAVIN
An agreement to modify an existing credit agreement, or forbear from exercising remedies connected with an existing agreement can give rise to a claim or defense that a new agreement has been formed, as long as agreement satisfies Section 2 of Credit Act. Any unwrittten understanding by the parties has no bearing on whether the Credit Act has been satisfied. Signatures of creditor and debtor cannot be found in the writings at issue, and a valid signature by the parties was at issue from time when mortgagee bank asserted that agreement did not satisfy Credit Act.; and thus, any settlement agreement between parties was unenforceable. (FITZGERALD SMITH and EPSTEIN, concurring.)

The Henderson Square Condominium Association v. LAB Homes, L.L.C.

Illinois Appellate Court
Civil Court
Condominiums
Citation
Case Number: 
2014 IL App (1st) 130764
Decision Date: 
Friday, March 21, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Reversed and remanded.
Justice: 
GORDON
(Court opinion corrected 3/25/14.) Condo association and its board of managers filed complaint arising from sale of condo units by defendant developers. Court improperly dismissed complaint, as Plaintiffs adequately pled causes of action, and questions of fact remain. Plaintiffs alleged that Defendants knew, at time of transfer, that extensive repairs were needed to remedy alleged inferior construction, and that Defendants did not reasonably budget for repairs; thus trier of fact must determine whether amount of reserves in place at time of transfer was reasonable, and Plaintiffs adequately pled breach of fiduciary duty. and damages. Section 13-72-030 of Chicago Municipal Code is a separate cause of action that Plaintiffs may file, and does not apply only to preexisting facts. If Defendants fraudulently concealed falseness of their representations made pursuant to that Section, then statute of repose is tolled. (TAYLOR, concurring; PALMER, specially concurring.)