Article 10 - Business Practices
(765 ILCS 86/Art. 10 heading) Article 10. Business Practices
(765 ILCS 86/10‑5)
(Section scheduled to be repealed on January 1, 2020)
Sec. 10‑5. Sales contracts. Every sales contract relating to the purchase of real property in a subdivision shall clearly state:
(1) the legal description of the parcel being sold;
(2) the principal balance of the purchase price
| outstanding at the date of the sale contract, after full credit is given for down payment; | |
(3) that the purchaser has the unconditional option |
| to rescind a contract until midnight of the seventh day following the signing of the contract if the purchaser received a copy of the property report as required in Section 5‑10, and 2 years to rescind the contract if the property report was not received; | |
(4) which party is obligated to pay the costs of |
| issuance of the required title policy and recording of all documents; | |
(5) the latest date by which any promised services |
| or amenities, which shall include but not be limited to all those identified in the public property report or any form of advertising, will be provided or completed; and | |
(6) that any deed, contract for deed, or installment |
| contract shall be recorded within 180 days after the date of acceptance. | |
(Source: P.A. 91‑338, eff. 12‑30‑99.) |
(765 ILCS 86/10‑10)
(Section scheduled to be repealed on January 1, 2020)
Sec. 10‑10. Title insurance. The subdivider shall arrange for the issuance of an owners title insurance policy following recording, subject only to the conditions contained in the contract and the standard exceptions contained in the title policy. If there are defects in the title rendering it uninsurable, the purchaser has the option of reconveying or releasing the lot and receiving a refund of all moneys paid under the contract, and the purchaser shall be released from any and all obligations under the contract.
(Source: P.A. 91‑338, eff. 12‑30‑99.)
(765 ILCS 86/10‑15)
(Section scheduled to be repealed on January 1, 2020)
Sec. 10‑15. Copies of instruments. A copy of the instruments executed in connection with the sale of parcels within a subdivision shall be kept and subject to inspection by the Department. The Department shall be notified of any change of address affecting the location of the owner's, subdivider's, or agent's records, or of any change in the depository for purchasers' payments under this Act.
(Source: P.A. 96‑855, eff. 12‑31‑09.)
(765 ILCS 86/10‑20)
(Section scheduled to be repealed on January 1, 2020)
Sec. 10‑20. Sale of encumbered lots prohibited; exceptions. It is unlawful for the owner or subdivider to sell lots or parcels within a subdivision subject to a blanket encumbrance unless one of the following conditions is met:
(1) All sums paid or advanced by a purchaser are
| placed in an escrow or other depository account acceptable to the Department until (i) the fee title contracted for is delivered to the purchaser by deed together with complete release from all financial encumbrances; (ii) the owner, subdivider, or purchaser defaults and fails to perform under the contract of sale and there is final determination as to the disposition of such moneys; or (iii) the funds in the escrow or other account are voluntarily returned to the contract purchaser. | |
(2) The fee title to the subdivision is placed in |
| trust under an agreement or trust acceptable to the Department until a proper release from each blanket encumbrance, including all taxes, is obtained and title is delivered to the purchaser. | |
(3) A bond to the State of Illinois is furnished to |
| the Department for the benefit and protection of purchasers of such lots or parcels, in the amount and subject to terms approved by the Department. The bond shall be executed by a surety company that is authorized to do business in the State of Illinois and has given consent to be sued in this State. The bond shall provide for the return of moneys paid or advanced by a purchaser if (i) the title contracted for is not delivered and (ii) a full release from each blanket encumbrance is not obtained. If it is determined that the purchaser, by reason of default or otherwise, is not entitled to the return of those moneys, or any portion of those moneys, then the bond is released by the amount of moneys to which the purchaser of parcel is not entitled. | |
(4) The blanket encumbrance contains provisions |
| evidencing the subordination of the lien of the holder of the blanket encumbrance to the rights of those persons purchasing from the subdivider, and further evidencing that the subdivider is able to secure releases from such blanket encumbrances with respect to the property. | |
(Source: P.A. 96‑855, eff. 12‑31‑09.) |
(765 ILCS 86/10‑25)
(Section scheduled to be repealed on January 1, 2020)
Sec. 10‑25. False statement or misrepresentation; penalty. Every officer, agent, or employee of any owner or subdivider of land, and every other person, who knowingly authorizes, directs, or aids in the publication, advertisement, distribution, or circularization or any false statement or misrepresentation concerning any such land or subdivision offered for sale commits a Class 4 felony.
Every person, with knowledge that any advertisement, pamphlet, prospectus, or letter concerning any such land or subdivision contains any written statement that is false or fraudulent, who issues, circulates, publishes, or distributes the advertisement, pamphlet, prospectus, or letter, or causes the advertisement, pamphlet, prospectus, or letter to be issued, circulated, published, or distributed, commits a Class 4 felony.
(Source: P.A. 91‑338, eff. 12‑30‑99.)
(765 ILCS 86/10‑30)
(Section scheduled to be repealed on January 1, 2020)
Sec. 10‑30. Failure to pay registration, inspection, or renewal fees; civil penalty. Any owner, subdivider, or agent who fails to pay the registration, inspection, or renewal fees when due shall be assessed a late fee or civil penalty. Practice by a registrant while in a non‑renewed status constitutes unregistered practice. Any penalties collected under this Act shall be deposited into the Real Estate License Administration Fund.
(Source: P.A. 96‑855, eff. 12‑31‑09.)