The Illinois Real Estate Lawyers Association is comprised of experienced attorneys dedicated to assisting individuals and businesses in connection with real estate transactions of all types.
Meetings of the Illinois Real Estate Lawyers Association, unless otherwise indicated, generally take place at 8:00 a.m. on the second Wednesday of each month at the Holiday Inn in Rolling Meadows, Illinois (3405 Algonquin Road, Rolling Meadows, IL - 847-259-5000). Meetings may take place at other locations -- see "Next Meeting" section below.
The next general membership meeting will take place on Wednesday, May 14, 2008, at 8:00 a.m. at the ISBA Regional Office, 20 S. Clark, Chicago, Illinois (800-678-4009). (Map and Directions.)
We are pleased to welcome Cook County Treasurer Maria Pappas, who will address the membership regarding the "State of the Office of the Cook County Treasurer: Where We Were, Where We Are, and Where We Are Going".
New developments affecting real estate practitioners are under way at the Cook County Treasurer's Office. Come and learn all about it. Plan to arrive early to get a seat.
MARK YOUR CALENDAR NOW.
In the News . . .
Fighting Foreclosure Seminar Series
IRELA is presenting a series of free seminars for the benefit of the public entitled:
"Fighting Foreclosure: What Every Homeowner Should Know."
IRELA President Ralph J. Schumann and IRELA Board Members Joseph Nery and Dennis Bordyn, along with Tammy Hajjar of Countrywide Home Loans, will be speaking on this important topic at locations in the greater Chicago Metropolitan area over the next few months. Points to be covered include:
What exactly is a foreclosure? What is the process and timeline? What financial alternatives exist and what can be done to avoid foreclosure? What is a short sale and how can it help borrowers facing foreclosure?
To view and download a Flyer describing the seminar to be held in Aurora, Illinois at 9:30 a.m. on May 17, 2008, click on:
Fighting Foreclosure Seminar - May 17th in Aurora
Light refreshments will be provided, but seating is limited, so please RSVP. Information regarding subsequent seminars will be posted in this space.
February, 2008 Illinois Bar Journal Quotes IRELA President Schumann and Director Bashaw:
IRELA President Ralph J. Schumann and IRELA Board Member Steve Bashaw are quoted in Helen Gunnarsson's article in the February, 2008 issue of the Illinois Bar Journal entitled "Helping Clients Who Face Foreclosure".
To access the article, click on:
"Helping Clients Who Face Foreclosure"
IRELA CHAIRMAN and PRESIDENT Quoted in Northwest Herald:
IRELA Chairman and ISBA Second Vice President John G. O'Brien and IRELA President Ralph J. Schumann were quoted in a recent article in the Business Section of the Northwest Herald entitled "Real estate lawyers have some foreclosure advice"
To access the article at the Northwest Herald web site, click on:
"Real estate lawyers have some foreclosure advice"
To download a spreadsheet detailing percentage changes in foreclosures rates for cities in Cook County and surrounding counties from 2006 to 2007, click on:
Foreclosure Percentage Change Spreadsheet.
IRELA PRESIDENT Quoted in Chicago Lawyer:
IRELA President Ralph J. Schumann was quoted in the November, 2007, and December, 2007, issues of the Chicago Lawyer in a two-part article discussing current issues presented by subprime mortgages. Part One is entitled: "Subprime mortgages: An invitation to a meltdown", and Part Two is entitled: "The credit crunch moves dramatically beyond Wall Street"
To access a copy of Part One of the two-part series as a PDF file, click on:
PART ONE: "Subprime mortgages: An invitation to a meltdown"
(This is a large file.)
To access a copy of Part Two of the two-part series as a PDF file, click on:
PART TWO: "The credit crunch moves dramatically beyond Wall Street"
(This is a large file.)
IRELA Board Member Steve Bashaw Quoted in Daily Herald:
Steve Bashaw, a member of the IRELA Board of Directors, has a concentration in handling mortgage foreclosure matters. He was quoted in a recent article in the Daily Herald concerning problems borrowers in foreclosure situations experience in trying to communicate with their lenders entitled "Miscommunication at heart of foreclosure crisis"
To access a copy of the article at the Daily Herald web site, click on:
"Miscommunication at heart of foreclosure crisis"
IRELA PRESIDENT and IMMEDIATE PAST PRESIDENT Participate in Law Bulletin Seminars 2007 Real Estate Law Conference:
IRELA President Ralph J. Schumann spoke at the October 4th Law Bulletin Seminars 2007 Real Estate Law Conference on title issues, and Immediate Past President Aurora Abella-Austriaco served as the moderator for the panel.
Practice Pointers . . .
City of Chicago Municipal Transfer Tax Increase: The City of Chicago Municipal Transfer Tax is now $10.50 per thousand of the sale price for closings as of April 1, 2008. To access and read a letter written to Chicago Mayor Daley by IRELA President Ralph J. Schumann regarding the 40% increase, click on:
NOTE: You will need Adobe Acrobat Reader Version 6.0 or newer to view this file.
If you do not have Adobe Acrobat Reader Version 6.0 or newer, click here:
NEW CITY OF CHICAGO TRANSFER DECLARATION FORM Available Here
To access and download the new Chicago Transfer Declaration Form,
effective April 1, 2008, go to the Resources section of this web site.Statutory Development: The Mortgage Forgiveness Debt Relief Act of 2007 (P. L. 110-142) is in effect, and will apply to debts or portions of debt forgiven through December 31, 2009. It can be helpful for those who are doing a short sale to avoid having the portion of the mortgage debt forgiven by the lender treated as a taxable event, but there are limitations. To access and download a Primer regarding the new act, click on:
Mortgage Forgiveness Debt Relief Act - Legislative Update
NOTE: You will need Adobe Acrobat Reader Version 6.0 or newer to view this file.
If you do not have Adobe Acrobat Reader Version 6.0 or newer, click here:
Statutory Development: Be aware of the new radon disclosure requirement which took effect January 1, 2008. To access and download the Disclosure of Information on Radon Hazards Form provided as a service by IRELA, click on:
Radon Information Disclosure Form
NOTE: You will need Adobe Acrobat Reader Version 6.0 or newer to view this file.
Radon disclosure
House Bill 1425 (Reitz, D-Sparta; Trotter, D-Chicago) creates the Illinois Radon Awareness Act. It requires before the sale of any residential real property that the seller give to the buyer a new statutory form that states the property may present the potential for radon exposure. Exempts seven other kinds of transactions such as under a court order, judicial deed, and from one co-owner to another. Passed both chambers. Effective January 1, 2008.Pamphlet
To access and download the Radon Testing Guidelines for Real Estate Transactions pamphlet produced by the State of Illinois and the Illinois Emergency management Agency, click on: Radon Testing Guidelines Pamphlet.
Case Law Developments:
A recent Second District case presents a different perspective on attorney approval issues. When is a "counteroffer" not a "counteroffer"? For more information, see the Case Law section of this web site (in the "Members Only" Section).
Following issuance of its opinion in Jennings v. Baron (filed July 26, 2007) the Second District granted a petition for rehearing, nullifying its original opinion, and subsequently issued a Rule 23 Order in its stead. Upon rehearing, the court determined that the contract for the purchase of real estate remained in effect because the defendants did not clearly and unambiguously invoke the attorney approval clause when they raised concerns about the home inspection, and affirmed the trial court's ruling.
For more information, see the Case Law section of this web site (in the "Members Only" Section).
Unauthorized Practice of Law Update . . .
IRELA SETTLES THREE YEAR OLD LAWSUIT WITH ONE WORLD TITLE:
The Illinois Real Estate Lawyers Association announced March 26, 2007 that it has settled its unauthorized practice of law suit against One World Title, a Crystal Lake title company, and Realtor Richard O'Connor. IRELA Chairman John G. O'Brien stated the association filed the suit because the Realtor and the title company were substituting their judgment for that of the seller's lawyer regarding certain key functions of attorneys in real estate transactions, and were, in effect, telling attorneys when they could start to practice law. The settlement "recognizes and affirms the traditional role and and importance of the lawyer in this process," and provides important protections for members of the public engaging in real estate transactions. "It's a real victory for the consumer," said O'Brien.
Click here to download and read the March 26, 2007, press release:
Click here to download and read the March 26, 2007 article concerning the settlement by Pat Milhizer of the Chicago Daily Law Bulletin:
NOTE: You will need Adobe Acrobat Reader Version 6.0 or newer to view these files.
At the January 2007 General Meeting, Ralph J. Schumann was elected President of IRELA. Pictured above (left to right) are Past President Joseph R. Fortunato, Jr., Immediate Past President Aurora Abella-Austriaco, incoming President Ralph J. Schumann, and Chairman John G. O'Brien. (Jeffrey L. Picklin continues as Vice-President, and John C. Haas and Leanne W. Klein continue as Secretary and Treasurer, respectively.)
What`s New:
IRELA GOLF OUTING: THE Golf Outing of All Golf Outings!
The annual IRELA GOLF OUTING will be held Monday, July 21, 2008. MARK THE DATE. This premier event sells out quickly. Watch this space for more information.
Thank you again to all of our sponsors:
Attorneys’ Title Guaranty Fund, Inc. (Lunch), Chicago Title Insurance (Cocktails), Premier Title Company (Dinner), First Midwest Bank (Dinner), Republic Title Company (Beverage Carts)
Hole Sponsors:
First American Title, Stewart Title of Illinois, Ticor Title Insurance Company, Absolute Title Services, Inc., Chicago Title Insurance & CLAS, City Suburban Title, Land America Financial Group, Peck, Bloom, Austriaco & Mitchell, LLC, Prairie Title Services, Inc., Specialty Title Services, William J. Anaya/Samuel H., Levine, Arnstein & Lehr, LLP, Affinity Title Services, ATG Trust Company, Professional National Title Network
Multi-Board Residential Real Estate Contract 4.0
For information on accessing and downloading either a SAMPLE version or the Official Multi-Board Residential Real Estate Contract 4.0 (© 2006, Illinois Real Estate Lawyers Association), click on the "RESOURCES" tab above to go to the Resources Section of this web site.
LOAN ORIGINATOR ADVISORY: Check to be sure your Loan Originator is properly registered with the State of Illinois.
NOTE: Some loan originators are not properly registered with the Illinois Office of Banks and Real Estate - Division of Banking. See details under the "Developments" tab of this web site.
HB 4050 BULLETIN . . .
Predatory Lending Law Update
The previously reported proposal to extend the applicability of the Illinois Predatory Lending Database Pilot Program (HB 4050) to all of Cook County remains on hold. Watch this space for further updates regarding legislative developments in this area. On January 19, 2007, Governor Blagojevich directed the IDFPR to suspend implementation of the prior version of the law, and then announced on March 21, 2007 the issuance of new rules implementing the Illinois Predatory Lending Database Pilot Program and extending its applicability beyond the original 10-zip codes area to all of Cook County. As of this writing, we are awaiting an update on the status of SB 1167, which contains much more comprehensive provisions applicable to Cook County. SB 1167 was passed by both houses in August, and was sent to the governor for signature on September 5, 2007.
To read the original Press Release issued by the Office of the Governor, click on:
"Governor Blagojevich announces new rules to help protect homebuyers in Cook County"
IRELA Chairman Quoted in Newsweek Magazine:
IRELA Chairman and ISBA Third Vice President John G. O'Brien is quoted in a recent issue of Newsweek advising would-be purchasers of new construction condominiums how to engage in some "self-help" independent investigation regarding the complex in which they are considering buying, and urges them to consider critical timing issues.
To access the complete Newsweek magazine article, click on Money/ Tip Sheet/ Pros and Cons of New Condos
Recent Developments and Upcoming Events . .
COMMENTS FROM ANOTHER STATE ON ATTORNEY INVOLVEMENT IN REAL ESTATE CLOSINGS:
From the State of New York we have a recent interesting decision involving attorney involvement (or lack thereof) in closings. A credit union allegedly wrongfully collected from certain claimants an "early closure fee" when the homeowners refinanced their home equity line of credit. No attorney for the homeowners was present at the closing. In deciding against the credit union and awarding damages in excess of $5,000 (collected by the credit union as a "reimbursement" for "early closure of a credit line"), the court noted "Had claimants been represented by counsel, this litigation would probably not be before the Court." The Court also commented that it hoped that:
". . . the mischief being bred by not having lawyers at 'simple' closings does not lead to the 'riderless horse' of more egregious harm being suffered by the public."
To download and read the entire decision, click on:
For more information on other developments affecting the practice of real estate law in Illinois, click on the "Developments" tab above.
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