Illinois General Assembly - Full Text of SB0318

LRB095 07890 AJO 28052 b

Introduced 2/7/2007, by Sen. William R. Haine

SYNOPSIS AS INTRODUCED:

765 ILCS 5/27.5 new

Amends the Conveyances Act. Provides that a party to a real estate settlement that will convey legal or equitable title to real estate or any interest in real estate or create any lien on real estate by way of a mortgage may record a notice of real estate settlement with the recorder of deeds of the county in which the real estate is located. Permits the recorder of deeds to charge a fee for recording a notice of real estate settlement not to exceed the fee to record a federal tax lien. Provides the notice of real estate settlement form. Provides that, after the filing of a notice of real estate settlement, any person claiming title to, an interest in, or a lien upon the real estate described in the notice through any party in the notice shall be deemed to have acquired the title, interest, or lien with knowledge of the anticipated settlement and shall be subject to the terms, conditions, and provisions of the deed or mortgage between the parties recorded within the specified period. Provides that a notice of real estate settlement is effective for 60 days from the date of recording. Provides that a 60 day extension of time may be accomplished by recording an additional notice and that a notice may be terminated by the recording of a discharge of notice of real estate settlement. Effective 60 days after becoming law.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning property.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Conveyances Act is amended by adding Section 27.5 as follows:

(765 ILCS 5/27.5 new)

Sec. 27.5. Notice of real estate settlement.

(a) Any party, or his or her legal representative, to a real estate settlement that will convey legal or equitable title to real estate or any interest therein or create any lien thereon by way of a mortgage or trust deed in the nature of a mortgage, may record an instrument to be designated a "notice of real estate settlement" with the recorder of deeds of the county in which the real estate is situated. The recorder of deeds may charge a fee not to exceed the fee charged for the recording of notices of federal tax liens.

(b) The notice of real estate settlement shall be signed by a party or legal representative and shall set forth the names of the parties to the settlement and contain a description of the real estate. The execution of the notice shall be acknowledged or proved in the manner provided by law for the acknowledgement or proof of deeds.

(c) The form of the notice of real estate settlement shall be as follows: Name ...............................) Address ............................) Seller or Mortgagor ) NOTICE OF REAL ESTATE SETTLEMENT Name ...............................) Address ............................) Purchaser or Mortgagee )

NOTICE is hereby given of a ............................. (contract, agreement, or mortgage commitment) between the parties hereto.

THE lands to be affected are described as follows:

ALL that certain tract or parcel of land and premises situate, in the ........ of ........, County of .............. and State of Illinois, commonly known as .............................................. (street address) and more particularly described as follows:

(legal description and permanent index number)

Name of party or legal representative ....................

Address ..................................................

(acknowledgement) State of (name of state), ) )ss County of (name of county).)

I (here give name of officer and his official title) certify that (name of grantor, and if acknowledged by the spouse, his or her name, and add "his or her spouse") personally known to me to be the same person whose name is (or are) subscribed to the foregoing instrument, appeared before me this day in person, and acknowledged that he (she or they) signed and delivered the instrument as his (her or their) free and voluntary act, for the uses and purposes therein set forth.

Dated (insert date).

(Signature of officer).

(Seal).

(d) After the recording of a notice of real estate settlement, any person claiming title to, an interest in, or a lien upon the real estate described in the notice of real estate settlement through any party in the notice of real estate settlement shall be deemed to have acquired the title, interest, or lien with knowledge of the anticipated settlement and shall be subject to the terms, conditions, and provisions of the deed, mortgage, or trust deed in the nature of a mortgage between the parties recorded within the period set forth in subsection (e) of this Section.

(e) The notice of real estate settlement shall be effective for 60 days from the date of recording, unless it is terminated by the recording of a "discharge of notice of real estate settlement". The effective period of a notice of real estate settlement may be extended for one period of 60 days by recording an additional notice of real estate settlement before the expiration or discharge of the notice of real estate settlement. If the purchaser or mortgagor does not both consummate the real estate settlement contemplated in the notice of real estate settlement and record the documents generated for recording from said real estate settlement within 60 days of the recording of the notice of real estate settlement, then the notice of real estate settlement shall be of no further force and effect and shall not import either constructive or actual knowledge to third parties of the purchaser or mortgagor.

(f) A discharge of a notice of real estate settlement shall be substantially in the form prescribed for a notice of real estate settlement and shall be recorded by the party or authorized representative who recorded the notice of settlement. The discharge shall be entitled to recording in the same manner as the notice of real estate settlement.

Section 99. Effective date. This Act takes effect 60 days after becoming law.