Real Estate Law

Public Act 97-329

Topic: 
Mortgage Foreclosure Article
(Coladipietro, R-Bloomingdale; Dillard, R-Hinsdale) makes a deadline for filing a motion to dismiss or to quash service that objects to the court's jurisdiction over the person within 60 days after the earlier of the following: (1) the date that the moving party filed an appearance or (2) the date that the moving party participated in a hearing without filing an appearance. The court may extend this for good cause shown. If the objecting party files a responsive pleading or a motion before filing a motion objecting to personal jurisdiction, that party waives all objections to the court's jurisdiction over the party's person. Effective August 12, 2011.

Public Act 97-350

Topic: 
Post-judgment collections
(Mathias, R-Buffalo Grove; Silverstein, D-Chicago) does three things. (1) Allows a continuing lien on personal property, including beneficial interests in a land trust. (2) Allows service of a citation or nonwage garnishment against an LLC so that the court may enter a charging order. (3) Construes a foreign judgment to be an original Illinois judgment for enforcement or revival from the date it is filed with the clerk. Effective January 1, 2012.

Public Act 97-235

Topic: 
Home Repair and Remodeling Act
(Williams, D-Chicago; Wilhelmi, D-Joliet) makes a number of changes to the Home Repair and Remodeling Act some of which are as follows. (1) Prohibits a contractor from advertising or promising to pay or rebate all or any portion of any insurance deductible. (2) Prohibits a contractor from accepting money or any form of compensation in exchange for allowing an out-of-area contractor to use its business name or license. (3) Allows a person to cancel a written contract with a contractor to be paid from the proceeds of a property and casualty insurance policy. Cancellation is allowed before midnight on the earlier of the fifth business day after the insured has received written notice from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy or the 30th business day after receipt of a properly executed proof of loss by the insurer from the insured. (4) Imposes a $250 civil penalty for a roofing contractor for failing to put the licensing number and licensee’s name on its commercial vehicles. No penalty is imposed if this is corrected before the hearing on the civil penalty. Effective January 1, 2012.

Public Act 97-236

Topic: 
Lessees and criminal activity
(Wilhelmi, D-Joliet; DeLuca, D-Crete) makes two changes to leases and evictions. (1) Requires written leases to notify lessees that if the they use or permit activity that is a felony or Class A misdemeanor, they can be evicted. (Failure to do so doesn’t impair the lessor’s right to evict because of criminal activity.) (2) Allows a municipality’s corporation counsel to evict under this statute as well. Effective August 2, 2011.

Public Act 97-143

Topic: 
Residential mortgage originators
(Frerichs, D-Gifford; Holbrooke, D-Belleville) exempts from the Residential Mortgage License Act of 1987 any person or entity who originates with private funds less than three residential mortgage loans in a calendar year that are not in the ordinary course of business. Effective July 14, 2011.

Public Act 97-105

Topic: 
Condominiums and associations
(Sente, D-Lincolnshire; Althoff, R-Crystal Lake) renames the “Homeowners' Solar Rights Act” to now be the “Homeowners' Energy Policy Statement Act.” Requires that any “energy policy statement” that an association of homeowners or condominium-unit owners adopts must also address whether there is any requirements for composting, rainwater collection, or wind-energy collection, and if so, what are those requirements. Effective January 1, 2012.

Collins v. America's Servicing Co.

Federal 7th Circuit Court
Civil Court
Property
Citation
Case Number: 
No. 10-2962
Decision Date: 
July 13, 2011
Federal District: 
N.D. Ind., Hammond Div.
Holding: 
Affirmed
Dist. Ct. did not err in granting defendant-mortgage service company's motion for summary judgment in action alleging that defendant violated Ind. Home Loan Practices Act and breached forbearance contract when it charged plaintiff certain monthly late fees and reported said late payments, which, in turn, prevented plaintiff from refinancing mortgage and ultimately led to foreclosure proceedings. Terms of forbearance agreement and mortgage allowed defendant to apply plaintiff's payments to prior deficiencies before applying any surplus to current month's obligation, such that plaintiff was always deemed late in months in which he made only designated monthly payment. Moreover, language in original mortgage and forbearance agreement permitted defendant to report late payments, such that plaintiff had no cause of action under Ind. statute.

Klecan v. Countrywide Home Loans

Illinois Appellate Court
Civil Court
Motions to Dismiss
Citation
Case Number: 
No. 3-10-0084, 2011 IL App (3d) 100084
Decision Date: 
Wednesday, June 29, 2011
District: 
3d Dist.
Division/County: 
Iroquois Co.
Holding: 
Reversed and remanded.
Justice: 
HOLDRIDGE
Plaintiff homeowners, whose home was damaged by flooding, sued their refinancing lender and its subsidiary flood determiner, after they learned that lender had not required them to purchase flood insurance, and flood determiner did not find property to be in a flood zone, although an earlier flood determination had, and prior lender had required purchase of flood insurance. Claim against refinancing lender was dismissed under Flood Act. The Flood Act does not bar common law negligence claim by borrower against a flood determiner, who owes to the borrowers, who were foreseeable plaintiffs, a duty of care in the preparation of their flood determination. (LYTTON and SCHMIDT, concurring.)

Public Act 97-21

Topic: 
Illinois Radon Awareness Act
(Reitz, D-Sparta; Haine, D-Alton) changes the disclosure requirements under this Act and also expands it to leased property. If a lessee notifies a lessor that a radon test indicates a radon hazard in the dwelling unit, then the lessor must disclose that risk to any prospective lessee of that unit unless a later test indicates that it no longer exists. If a lessor’s test indicates a radon hazard, then the lessor must notify current and prospective tenants of that unit. This Act does not apply to dwelling units located on the third floor or higher story or if the lessor has undertaken mitigation activities and a later test indicates that a radon hazard no longer exists. Effective January 1, 2012.