Illinois General Assembly - Bill Status for HB3973
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 Bill Status of HB3973  96th General Assembly


Short Description:  CONDO-NEW CONST ESCROW

House Sponsors
Rep. Cynthia Soto and Karen A. Yarbrough

Last Action
DateChamber Action
  1/11/2011HouseSession Sine Die

Statutes Amended In Order of Appearance
765 ILCS 605/22from Ch. 30, par. 322
765 ILCS 605/22.1from Ch. 30, par. 322.1
765 ILCS 605/24.5 new


Synopsis As Introduced
Amends the Condominium Property Act. Provides that in relation to an initial sale or offering for sale of a condominium unit, the seller and developer must disclose, in a required form, to any purchaser of a condominium unit any information of which they are aware about any material or latent defect in the condominium unit or common elements; the required form includes definitions of the terms "aware", "material defect", and "latent defect". Provides that the information is not a warranty, but the disclosures are ones that the seller and developer should provide knowing that a prospective buyer may choose to rely on this information in deciding whether or not, and on what terms, to purchase the unit. Provides that the disclosure applies to all common elements. Provides that the report provided to an initial buyer shall be provided to a subsequent purchaser if the purchase occurs within 18 months after the initial sale. Provides that the developer must place in an escrow account an amount of money equal to 10% of the amount of the initial offering prices of the condominium units and the escrow funds shall be segregated in a separate account designated for this purpose in an interest bearing account at a federally insured institution, within applicable federal insurance limits. Provides that the interest earned on the escrow shall be available to and follow the disposition of the escrow. Escrow funds shall not be subject to attachment by any creditor of a buyer or of the developer or by the holder of a lien against any unit or the condominium property. The account shall be applied to the cost of repair or reconstruction of any unit or the common elements to correct a material or latent defect. This escrow requirement cannot be waived by any individual unit buyer, unit owner, or the association. A developer who violates the escrow requirement shall be subject to an action by a unit buyer or the association for damages and attorney's fees from the developer due to a violation of the escrow requirement.

Actions 
DateChamber Action
  2/26/2009HouseFiled with the Clerk by Rep. Cynthia Soto
  2/26/2009HouseFirst Reading
  2/26/2009HouseReferred to Rules Committee
  3/3/2009HouseAssigned to Judiciary I - Civil Law Committee
  3/4/2009HouseAdded Co-Sponsor Rep. Karen A. Yarbrough
  3/11/2009HouseMotion Do Pass - Lost Judiciary I - Civil Law Committee; 002-012-000
  3/11/2009HouseRemains in Judiciary I - Civil Law Committee
  3/13/2009HouseRule 19(a) / Re-referred to Rules Committee
  1/11/2011HouseSession Sine Die

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