Joe Fortunato responds to a Letter to the Editor in the ISBA Bar journal on the economics of the practice of real estate law. For more background on the relationship between the economics of a real estate practice and the need to guard against the unauthorized practice of law, click on the following link to download his response to the Editor.

Fortunato Letter to ISBA Bar Journal Editor


READ ALL ABOUT IT!!

The Illinois Real Estate Lawyers Association (IRELA) is pleased to announce that IRELA and the Koenig & Strey Defendants (Koenig & Strey/GMAC Real Estate and Ft. Dearborn Title) have reached a settlement in the litigation captioned: The Illinois Real Estate Lawyers Association, an Illinois not-for-profit corporation v. Koenig & Strey, Inc. and Koenig & Strey Title Company, Inc., formerly pending in the Circuit Court of Cook County, Chancery Division, Case Number 00 CH 10063. The parties reached settlement on the unauthorized practice of law count brought by IRELA and the Counterclaim brought by Defendants. The terms of the settlement are incorporated into a Consent Decree entered by the Honorable Richard J. Billik, and are available on this web site. For a complete copy of the Consent Decree and the accompanying joint press release, click here:

Consent Decree
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The settlement of the lawsuit with Koenig & Strey followed established principles set forth in the Illinois Supreme Court`s ruling regarding unauthorized practice of law in Chicago Bar Association, et al. v. Quinlan and Tyson, Inc., 34 Ill. 2d 116, 214 N.E.2d 771 (1966). Koenig & Strey acknowledges and agrees in the Consent Decree that "the certain February 9, 2000 internal KST electronic mail message entitled `Closing myth number 1,` to the extent that message suggests that anyone other than a licensed attorney may perform legal services, was mistaken," and the terms of the Consent Decree reaffirm the realtor`s obligation to comply with the requirements of Quinlan and Tyson. For a complete copy of the Quinlan and Tyson decision, click here:

Quinlan and Tyson decision
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The Joint Press Release issued by the parties states, in pertinent part:

As a result of this litigation, OBrien was referred to in the popular press as the "Turf Warrior," but, according to the associations corporate attorney, Stuart Wolf of Arlington Heights, "It is not a description he necessarily deserves." According to Wolf, "It is not turf that is at stake. Lawyers are not at risk. Clients are at risk if they proceed to closings without independent lawyers actively representing their interests as sellers, buyers and borrowers." (Koenig & Strey GMAC Real Estate President Christopher J.) Eigel does not disagree. "Often times lawyers are the best insurance we have at closings," he said.


For Immediate Release
On June 11, 2001


ILLINOIS REAL ESTATE LAWYERS ASSOCIATION, KOENIG & STREY REACH SETTLEMENT ENDING A LAWSUIT OVER ISSUE OF UNAUTHORIZED PRACTICE OF LAW

In an agreement that both parties claim is a victory for Illinois consumers, a settlement has been reached between the Illinois Real Estate Lawyers Association (IRELA), Koenig & Strey Real Company, Inc., and Koenig & Strey Title Company (d/b/a Ft. Dearborn Title Company), ending a lawsuit that has been pending since July 2000.

Under the terms of the consent decree signed by Cook County Circuit Judge Richard J. Billik, Koenig & Strey agreed to reaffirm its policies and practices regarding the use of independent attorneys in the purchase and sale of real estate by their clients. In all transactions, Koenig & Strey agreed to recommend to its clients - both buyers and sellers - that they retain an independent attorney to represent them, according to Christopher Eigel, Koenig & Strey president.

The plaintiff, IRELA - a three-year-old association with more than 1,100 members statewide - acknowledged in the consent decree that some of the association`s members made statements that Koenig & Strey claims have damaged their business reputation. John O`Brien, an attorney in private practice in Arlington Heights who is IRELA president, said that IRELA has agreed to encourage its officers and members to work cooperatively with Koenig & Strey in servicing their mutual clients.

"The consent decree represents a victory for Illinois consumers who should not be misled to believe that independent legal counsel is unnecessary in what, for most, is the biggest investment they will make in a lifetime," stated O`Brien.

The lawsuit was filed July 10, 2000, following the publication of "Closing Myth #1," an internal e-mail from Koenig & Strey Title Company, informing Koenig & Strey employees that lawyers were not needed to close a real estate transaction in Illinois. In its lawsuit, IRELA requested that the defendant "cease and desist" from encouraging such action which it said constituted the unauthorized practice of law.

Eigel has since said that Koenig & Strey had no intention of replacing lawyers at the closing table. "We welcome lawyers because their presence is almost always an indication that legal problems will be resolved at or before closing," he said.

The terms of the consent decree are available from both parties` web sites (IRELA web site: www.reallaw.org and Koenig & Strey web site: www.ksgmac.com).

Koenig & Strey was represented by J. Andrew Langan, of Kirkland & Ellis, and IRELA was represented by William J. Anaya, of Johnson & Bell, Ltd. and Stuart H. Wolf.

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Greg Moody of the firm of Codilis & Associates gave an excellent presentation at the May 9, 2001 monthly IRELA meeting, which was held in Crystal Lake. For those members who may have missed his analysis of the myriad issues facing third party buyers in foreclosure sales, and for those of you who attended but did not get a copy of his handout -- click on the following link to download a copy of his materials from that presentation.

MoodyThirdPartyBiddersArticle


For a timely and informative update on this topic and the ramifications of the recent legislation, see the article written recently by Dick Bales of Chicago Title Insurance Company. Click on the following link to download a copy:

Bales Survey Article


Steven B. Bashaw is an Oak Brook solo practitioner who chairs the ISBA Real Estate Section Council and is also a member of the Board of Directors of the Illinois Real Estate Lawyers Association (IRELA). Those IRELA members who missed his excellent March 14, 2001 presentation at the Holiday Inn, Rolling Meadows, on "RECENT CASES OF NOTE FOR REAL ESTATE LAWYERS ON CONTRACT FORMATION, EARNEST MONEY, WAIVER, LIQUIDATED DAMAGES AND THE RESIDENTIAL REAL ESTATE DISCLOSURE ACT - SOME MORE THREADS IN THE ROPE OF THE LAW OF RESIDENTIAL REAL ESTATE TRANSACTIONS", missed a very timely and interesting cutting edge analysis of developing case law in important areas impacting real estate practitioners. If you missed the meeting -- or attended but did not get a copy of his handout -- click on the following link to download a copy of his materials from that presentation.

BashawCaseLawMaterials


Many IRELA members are already taking advantage of the opportunity to receive the Real Estate Keypoints authored each month by Steven B. Bashaw who, as mentioned above, is an Oak Brook solo real estate practitioner who chairs the ISBA Real Estate Section Council and is also a member of the Board of Directors of the Illinois Real Estate Lawyers Association (IRELA). Steve`s Real Estate Case Law Keypoints (or Flashpoints as published by IICLE), are provided by e-mail. You can subscribe and receive these timely and pithy summaries of recent decisions and commentaries on a monthly basis. They are the best thing going - and they are free!

If you have not already signed up to receive these Keypoints, you should do so. To view the current month`s Real Estate Keypoint and an archive of prior Keypoints in Steve`s website, click here...

to access the "Publications" section of the web site, and then select Keypoints! from the menu in the left margin.


We are pleased to announce that our registered membership is now over 1,100 members! As we all close deals in the coming weeks, check whether your opposite number is an IRELA member. If not, encourage him or her to join. We are doing important work on behalf of the profession, and the support of real estate practitioners is vital. Remember, new members can apply online (by clicking the "Members" button above and then selecting the "JOIN IRELA" button on the pop-up menu in left margin). If you would like a supply of brochures / membership applications, contact us at info@reallaw.org.


The online preparation system for the "new and improved" Illinois Transfer Declaration Form (PTAX-203 & 203-A, formerly known as the "green sheet") is now up and running. Preparers are now able to complete the form using by accessing a web site and then printing it out to submit it for filing. Remember, all sales involving deeds dated January 1, 2000 or later must be reported on the new form. Hard copies of the forms are available at county recorder`s offices. For more information, see the discussion at this siteunder "Current Developments" regarding the amendment to the Property Tax Code affecting the Transfer Declaration. You can also check out the "Legal Information" section of the Illinois Department of Revenue web site for an update at: http://www.revenue.state.il.us/legalinformation/practqna/realestateqna.html To access the Illinois Department of Revenue`s online completion system for the new transfer tax declaration form, click on: http://www.revenue.state.il.us/retd

If you would like to print out a blank hard copy of either transfer declaration form, you can go to the Lake County Recorder`s web site (www.co.lake.il.us/recorder) and access the "Real Estate Transfer Info" heading in the "Information Available for Download" section. (The forms on the Lake County Recorder`s web site are in Adobe Acrobat .pdf format, so they cannot be completed "online", but they can be printed out for completion in the old-fashioned way.)