Real Estate Law

The Foreclosure Explosion: How Illinois Courts Are Responding

By Joseph R. Fortunato & Steven B. Bashaw
July
2010
Column
, Page 380
How judges, lawyers, and litigants in Chicagoland are responding to the foreclosure crisis.

Wilder Corporation of Delaware v. Thompson Drainage and Levee District

Federal 7th Circuit Court
Civil Court
Indemnity
Citation
Case Number: 
No. 11-1185
Decision Date: 
September 27, 2011
Federal District: 
C.D. Ill.
Holding: 
Affirmed
Dist. Ct. did not err in granting defendant’s motion for summary judgment in action under common law indemnity theory alleging that defendant was required to reimburse plaintiff for damages it incurred when third-party purchaser of plaintiff’s land successfully sued plaintiff for environmental cleanup costs where: (1) in contract with third-party, plaintiff breached warranty that land would be free from contamination; and (2) plaintiff alleged that defendant was source of said contamination. Plaintiff cannot invoke non-contractual indemnity to shift risk that it assumed in contract for sale of land, and plaintiff could have protected itself by including in land contract subrogation clause that would have allowed plaintiff to step in third-party’s shoes as plaintiff in subsequent nuisance lawsuit against defendant to recoup instant cleanup costs.

Active Duty Military: A Special Class of Distressed Homeowners

By Steven B. Bashaw
October
2011
Column
, Page 532
Being forced to sell a home in this economy is a recipe for financial misery.

In re Application of the County Treasurer and Ex Officio County Collector of Cook County, Illinois v. OneWest Bank

Illinois Appellate Court
Civil Court
Real Estate Taxes
Citation
Case Number: 
2011 IL App (1st) 101966
Decision Date: 
Thursday, August 25, 2011
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div.
Holding: 
Affirmed.
Justice: 
LAVIN
(Court opinion corrected 9/1/11.) Homeowner failed to pay her real estate taxes in amount of $1383 on two-flat apartment building. Court properly denied tax deed pursuant to Property Tax Code, as attempted purchaser failed to give proper notice of redemption period, per Section 22-5 of Code, and failed to exercise due diligence in serving notice per Section 22-10 of Code. Servicer for noteholder's successor was entitled to notice, as purchaser could have learned of servicer's existence by calling MERS, and Code reqires only that a party have an interest in property to be entitled to notice. (PUCINSKI and SALONE, concurring.)

Public Act 97-552

Topic: 
Municipalities and zoning
(Senger; R-Naperville; Sandack, R-Downers Grove) allows municipalities of fewer than 500,000 to adopt rules of procedure or authorize zoning board of appeals and any other board, commission, or committee that conducts similar public hearings to do so. Effective August 25, 2011.

Public Act 97-555

Topic: 
Transfer on death instrument
(Bradley, D-Marion; Wilhelmi, D-Joliet) creates the Illinois Residential Real Property Transfer on Death Instrument Act. It allows an owner of real estate to transfer residential property on his or her death. The definition of "residential property" is borrowed from the Disclosure Act and the Mortgage Foreclosure Act. The act requires that the owner (1) sign in front of a notary and two credible witnesses and (2) have the same mental capacity to execute a TODI as is required to make a will. Effective January 1, 2012.

Public Act 97-533

Topic: 
Deed restrictions and special-service areas
(Althoff, R-Crystal Lake; Mautino, D-Spring Valley) prohibits a deed restriction or restrictive covenant from waiving or restricting the statutory rights to notice of a public hearing or the right to object, oppose, or challenge (1) the creation of a special-service area; (2) the levy of any tax of a special-service area; or (3) the issuance of bonds of a special-service area. Effective August 23, 2011.

Public Act 97-470

Topic: 
Cook County landlord and tenants
(Mayfield, D-Waukegan; Jones, D-Chicago) requires landlords to "change or rekey" locks of rental property after a renter moves out if the new renter has a written lease agreement. If the landlord doesn't do this, the landlord is liable for any damages for theft that occur. It exempts (1) apartment buildings with four units or less if the owner occupies one of the units or (2) the rented room is in a private home also occupied by the owner. Effective January 1, 2012.

Karimi v. 401 North Wabash Venture

Illinois Appellate Court
Civil Court
Real Estate Contract
Citation
Case Number: 
2011 IL App (1st) 102670
Decision Date: 
Tuesday, July 26, 2011
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed.
Justice: 
HARRIS
Liquidated damages provision in condominium purchase agreement (with purchase price of $2.188 million), which allowed seller to retain an amount equal to earnest money deposit (which was 15% of purchase price) is an enforceable penalty. Seller sent buyers a letter terminating the contract after sale did not close by agreed extended date for closing, and seller sold the unit to a third party. Liquidated damages in amount of 15% of purchase price is a reasonable amount, considering the potential loss each party faced at time of contracting, and both parties agreed to accept the inherent risk that the set amount could exceed actual damages. (CUNNINGHAM and CONNORS, concurring.)

Public Act 97-336

Topic: 
Notices and PIN numbers
(Tryon, R-Crystal Lake; Althoff, R-Crystal Lake) removes the Municipal Code requirement for a metes and bounds legal description in a notice concerning annexation, special uses, variations, or specified zoning hearings if the notice includes: (1) the common street address or addresses; and (2) the PIN number or numbers of all the parcels of real property contained in the affected area. Effective August 12, 2011.