Real Estate Law

(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.

(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.

(Bertino-Tarrant, D-Plainfield; Walsh, D-Joliet) amends the Residential Real Property Disclosure Act to add material defects in the windows or doors to the list of disclosures required under the Act. Effective January 1, 2015.