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Illinois Compiled Statutes

Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

PROPERTY
(765 ILCS 67/) Installment Sales Contract Act.

765 ILCS 67/1

    (765 ILCS 67/1)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1. Short title. This Act may be cited as the Installment Sales Contract Act.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/5

    (765 ILCS 67/5)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 5. Definitions. As used in this Act, unless the context otherwise requires:
    "Amortization schedule" means a written schedule which sets forth the date of each periodic payment, the amount of each periodic payment that will be applied to the principal balance and the resulting principal balance, and the amount of each periodic payment that will be applied to any interest charged, if applicable, pursuant to the contract.
    "Balloon payment" means a payment, other than the initial down payment, in which more than the ordinary periodic payment is charged during the contract.
    "Business day" means any calendar day except Saturday, Sunday, or a State or federal holiday.
    "Buyer" means the person who is seeking to obtain title to a property by an installment sales contract or is obligated to make payments to the seller pursuant to the contract.
    "Date of sale" means the date that both the seller and buyer have signed the written contract.
    "Dwelling structure" means any private home or residence or any building or structure intended for residential use with not less than one nor more than 4 residential dwelling units.
    "Installment sales contract" or "contract" means any contract or agreement, including a contract for deed, bond for deed, or any other sale or legal device whereby a seller agrees to sell and the buyer agrees to buy a residential real estate, in which the consideration for the sale is payable in installments for a period of at least one year after the date of sale, and the seller continues to have an interest or security for the purchase price or otherwise in the property.
    "Residential real estate" means real estate with a dwelling structure, excluding property that is sold as a part of a tract of land consisting of 4 acres or more zoned for agricultural purposes.
    "Seller" means an individual or legal entity that possesses a legal or beneficial interest in real estate and that enters into an installment sales contract more than 3 times during a 12-month period to sell residential real estate. Any individual or legal entity that has a legal or beneficial interest in real estate under the name of more than one legal entity shall be considered the same seller.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/10

    (765 ILCS 67/10)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 10. Terms and conditions of installment sales contracts.
    (a) The seller of residential real estate by installment sales contract shall provide the buyer with a written contract that complies with the requirements set forth in this Section.
    (b) Until both parties have a copy of the executed contract signed by the buyer and the seller with the signatures notarized, either party has the right to rescind the contract, in addition to all other remedies provided by this Act. Upon rescission, pursuant to this Section, the seller shall refund to the buyer all money paid to the seller as of the date of rescission.
    (c) An installment sales contract for the sale of any residential real estate subject to the contract shall clearly and conspicuously disclose the following:
        (1) The address, permanent index number, and legal
    
description of the residential real estate subject to the contract.
        (2) The price of the residential real estate subject
    
to the contract.
        (3) The amount, if any, of any down payment applied
    
to the price of the residential real estate subject to the contract and the resulting principal on the loan.
        (4) The amount of the periodic payment, any grace
    
periods for late payments, late payment fees, and to whom, where, and how the buyer should deliver each payment.
        (5) The interest rate being charged, if any,
    
expressed only as an annual percentage rate.
        (6) The term of the loan expressed in years and
    
months and the total number of periodic payments due.
        (7) The amount, if any, of any balloon payments and
    
when each balloon payment is due.
        (8) A statement outlining whether the seller or the
    
buyer is responsible for paying real estate taxes and insurance and how responsibilities of the buyer and seller change based on the time period the residential real estate subject to the contract is occupied by the buyer and what percentage of the principal is paid down. In all circumstances not defined in the disclosure required by this subsection, the seller has the responsibility for paying real estate taxes and insurance.
        (9) The amount that will be charged periodically, if
    
any, for the first year to pay real estate taxes.
        (10) The amount that will be charged periodically, if
    
any, for the first year to pay insurance.
        (11) A statement that the amounts listed in items (9)
    
and (10) of this subsection are subject to change each year.
        (12) The fair cash value as defined in the Property
    
Tax Code and set forth on the real estate tax bill for the year immediately prior to the sale, and the assessed value of the property as set forth on the real estate tax bill for the year immediately prior to the sale.
        (13) The amount of real estate taxes for the year
    
immediately prior to the sale.
        (14) Any unpaid amounts owing on prior real estate
    
taxes.
        (15) The amount of the annual insurance payment for
    
the year immediately prior to the sale.
        (16) The type of insurance coverage, including, but
    
not limited to, property insurance and title insurance, for the buyer and seller that will be required or provided.
        (17) The seller's interest in the structure being
    
sold.
        (18) Any known liens or mortgages or other title
    
limitations existing on the property.
        (19) An explanation as to when the buyer will obtain
    
the title.
        (20) A statement defining what repairs the buyer is
    
financially responsible for making to the residential real estate subject to the contract, if any, and how responsibilities of the buyer and seller to repair the property change based on the time period the residential real estate subject to the contract is occupied by the buyer and what percentage of the principal is paid down by any repairs made by the buyer. In all circumstances not defined in the disclosure required by this subsection, the seller has the financial responsibility for all repairs required to be made pursuant to the installment sales contract.
        (21) A statement defining what, if any, alterations
    
of the property must be approved by both the buyer and the seller prior to the alterations being made, including requirements to provide evidence of proper permits, insurance, and lien waiver agreements.
        (22) Any additional charges or fees due at the time
    
of the date of sale or at a later date.
        (23) An amortization schedule, as defined in Section
    
5.
        (24) A certificate of compliance with applicable
    
dwelling codes, or in the absence of such a certificate: (i) an express written warranty that no notice from any municipality or other governmental authority of a dwelling code violation that existed with respect to the residential real estate subject to the contract before the installment sales contract was executed had been received by the seller, his or her principal, or his or her agent within 10 years of the date of execution of the installment sales contract; or (ii) if any notice of a violation had been received, a list of all such notices with a detailed statement of all violations referred to in the notice.
        (25) A statement, in large bold font stating in
    
substantially similar form: "NOTE TO BUYER: BEFORE SIGNING THE CONTRACT THE BUYER HAS THE OPTION OF OBTAINING AN INDEPENDENT THIRD PARTY INSPECTION AND/OR APPRAISAL SO THAT THE BUYER CAN DETERMINE THE CONDITION AND ESTIMATED MARKET VALUE OF THE RESIDENTIAL REAL ESTATE AND DECIDE WHETHER TO SIGN THE CONTRACT."
        (26) If the residential real estate or any dwelling
    
structure thereon that is subject to the contract has been condemned by the unit of government having jurisdiction, the contract shall include a statement, in large bold font stating in substantially similar form: "NOTE TO BUYER: THE RESIDENTIAL REAL ESTATE BEING SOLD THROUGH THIS CONTRACT HAS BEEN CONDEMNED BY THE UNIT OF GOVERNMENT HAVING JURISDICTION."
        (27) A statement that the seller provided the buyer
    
the installment sales contract disclosure prepared by the Office of the Attorney General as required under Illinois State law. The statement shall include the date on which the buyer was provided with the disclosure, which must be at least 3 full business days before the contract was executed.
        (28) A statement that: (i) if the buyer defaults in
    
payment, any action brought against the buyer under the contract shall be initiated only after the expiration of 90 days from the date of the default; and (ii) a buyer in default may, prior to the expiration of the 90-day period, make all payments, fees and charges currently due under the contract to cure the default.
    (d) The requirements of this Section cannot be waived by the buyer or seller.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/15

    (765 ILCS 67/15)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 15. Applicability of other Acts. An installment sales contract under this Act is subject to the Lead Poisoning Prevention Act, the Residential Real Property Disclosure Act, the Illinois Radon Awareness Act, and the High Risk Home Loan Act. The remedies available to the buyer pursuant to this Act are cumulative and do not preclude any remedies otherwise available to a buyer at law or in equity.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/20

    (765 ILCS 67/20)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 20. Recording of contract required.
    (a) Within 10 business days of the date of sale of any residential real estate subject to an installment sales contract, and prior to any subsequent sale or other transfer of any interest in the residential real estate or contract by the seller, the seller shall record the contract or a memorandum of the contract with the county recorder of deeds. A memorandum of the contract shall be titled "Memorandum of an Installment Sales Contract" either in capital letters or underscored above the body of the memorandum. At a minimum, the memorandum of the contract shall include: the address, permanent index number, and legal description of the residential real estate subject to the contract; the names of the buyer and seller; and the date the contract was executed. The memorandum of the contract shall be signed by the buyer and the seller with the signatures notarized. However, any provision in an installment sales contract that forbids the buyer to record the contract or a memorandum of the contract is void and unenforceable.
    (b) If the seller fails to record the contract or the memorandum of the contract as required by subsection (a) of this Section, the buyer has the right to rescind the contract until such time as the seller records the contract. If the seller fails to record the contract or the memorandum of the contract and title to the property becomes clouded for any reason that may affect the ability of the seller to comply with the terms of the installment sales contract regarding the conveyance of marketable title to the buyer, the buyer has the option to rescind, not just before the seller records, but at any time within 90 days of discovering the title problem.
    (c) Upon rescission under this Section, the seller shall refund to the buyer all money paid to the seller as of the date of rescission. This Section does not limit any other remedies provided to the buyer by this Act or State law.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/25

    (765 ILCS 67/25)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 25. Repairs.
    (a) In all cases not included in the statement required by item (20) of subsection (c) of Section 10, the seller has the responsibility to make and pay for repairs.
    (b) If the seller deems certain repairs necessary to protect the seller's interest in the property, the seller may, at the seller's own cost, proceed to make the repairs in compliance with this Section. Before the performance of nonemergency repairs on residential real estate inhabited by a buyer, the seller shall provide the buyer with at least 72 hours' written notice of the seller's intent to make the proposed repairs. Nothing in this Section limits the seller's right to negotiate or secure recovery of the seller's actual cost to make repairs caused due to negligence or malicious damage on the part of the buyer.
    (c) Except for limitations included in the statement required by item (20) of subsection (c) of Section 10, nothing in this Section limits the buyer's right to obtain the services of a building contractor to make repairs that are chargeable to the buyer under this Act.
    (d) No seller may require, by contract or otherwise, that only the seller or an agent of the seller may make repairs. The buyer has the right to contract with other building contractors to make repairs for which the buyer is financially responsible.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/30

    (765 ILCS 67/30)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 30. Account statements.
    (a) The seller shall provide the buyer with an account statement, including amounts applied to principal, interest, tax, insurance, fees, and other charges, upon the buyer's request.
    (b) A seller is not required to provide a buyer with account statements without charge more than once in any 12-month period.
    (c) If the buyer's request for an account statement is made in response to a change in the terms of an installment sales contract, then the seller must provide the account statement without charge.
    (d) For other buyer requests for account statements, the seller may not charge the buyer more than the reasonable costs of copying and producing the account statement.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/35

    (765 ILCS 67/35)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 35. Insurance proceeds. A buyer or seller who receives payment of insurance proceeds as a result of damage to a dwelling structure shall apply the proceeds to the repair of the damage. However, the buyer and seller may make a fair and reasonable distribution of the insurance proceeds between each of them by a signed written agreement. The written agreement shall not be made until at least 7 days after any award of insurance on a claim has been settled and written notice of the settlement and award has been made by the insurer to both the buyer and seller. There shall be an exception for the application of insurance proceeds to the seller's mortgage balance when required by the terms of the seller's mortgage, with a corresponding credit to the buyer for the amount payable due on the installment sales contract.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/40

    (765 ILCS 67/40)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 40. Right to cure default. If the buyer defaults in payment, any action brought against the buyer under the contract shall be initiated only after the expiration of 90 days from the date of the default. A buyer in default may, prior to the expiration of the 90-day period, make all payments, fees, and charges currently due under the contract to cure the default.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/45

    (765 ILCS 67/45)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 45. Unlawful acts. It is a violation of this Act for either party to make an oral or written misrepresentation to the other party concerning a contract or regarding the rights or duties of either party under this Act or to induce either party to sign incomplete forms, contracts, notices, or written statements relating to the sale of residential real estate.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/50

    (765 ILCS 67/50)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 50. No waiver. The buyer or the seller may not waive any provisions of this Act by written contract or otherwise. Any contractual provisions or other agreements contrary to this Act are void and unenforceable.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/55

    (765 ILCS 67/55)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 55. Circumstances voiding mandatory arbitration provisions. A mandatory arbitration provision of an installment sales contract that is oppressive, unfair, unconscionable, or substantially in derogation of the rights of either party is void.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/60

    (765 ILCS 67/60)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 60. Prepayment penalties prohibited. The seller may not charge or collect a prepayment penalty or any similar fee or finance charge if the buyer elects to pay the outstanding principal balance of the purchase price under the contract before the scheduled payment date under the contract.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/65

    (765 ILCS 67/65)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 65. Prohibited contract terms. Any contract term that would put the buyer in default of the contract for failure to make improvements and repairs to residential real estate for conditions that existed prior to the date of sale is prohibited and unenforceable.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/70

    (765 ILCS 67/70)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 70. Cooling-off period.
    (a) The buyer or the seller shall not be bound for 3 full business days after an unexecuted installment sales contract has been accepted by the buyer and the seller in the contract's full and final form.
    (b) No later than the time the unexecuted installment sales contract has been accepted by the buyer and the seller in the contract's full and final form, the seller shall provide to the buyer the document described in Section 75 of this Act.
    (c) An executed installment sales contract shall include a statement acknowledging that the seller provided the buyer with the installment sales contract disclosure prepared by the Office of the Attorney General, as required under Section 75 of this Act.
    (d) An executed installment sales contract shall include the date the seller provided the buyer with the installment sales contract disclosure prepared by the Office of the Attorney General.
    (e) The requirements of this Section cannot be waived by the buyer or the seller.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/75

    (765 ILCS 67/75)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 75. Installment sales contract disclosures.
    (a) The Office of the Attorney General shall develop the content and format of an educational document providing independent consumer information regarding installment sales contracts and the availability of independent housing counseling services, including services provided by nonprofit agencies certified by the federal government to provide housing counseling. The document shall be updated and revised as often as deemed necessary by the Office of the Attorney General.
    (b) The document described in subsection (a) of this Section shall include the following statement: "IMPORTANT NOTICE REGARDING THE COOLING-OFF PERIOD: Illinois State law requires a 3-day cooling-off period for installment sales contracts, during which time a potential buyer cannot be required to close or proceed with the contract. The purpose of this requirement is to provide a potential buyer with 3 business days to consider his or her decision whether to sign an installment sales contract. Potential buyers may want to seek additional information from a HUD-approved housing counselor during this 3-day period. The 3-day cooling-off period cannot be waived."
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/80

    (765 ILCS 67/80)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 80. Credits towards deficiency in the case of default. If the buyer defaults, the seller shall credit toward the buyer deficiency any amount the buyer spent to repair defects in the property that existed before the sale.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/85

    (765 ILCS 67/85)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 85. Enforcement. Any violation of this Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/90

    (765 ILCS 67/90)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 90. Applicability of Act. This Act applies to installment sales contracts executed on or after the effective date of this Act.
(Source: P.A. 100-416, eff. 1-1-18.)

765 ILCS 67/905

    (765 ILCS 67/905)
    Sec. 905. (Amendatory provisions; text omitted).
(Source: P.A. 100-416, eff. 1-1-18; text omitted.)

765 ILCS 67/910

    (765 ILCS 67/910)
    Sec. 910. (Amendatory provisions; text omitted).
(Source: P.A. 100-416, eff. 1-1-18; text omitted.)

765 ILCS 67/915

    (765 ILCS 67/915)
    Sec. 915. (Amendatory provisions; text omitted).
(Source: P.A. 100-416, eff. 1-1-18; text omitted.)

765 ILCS 67/999

    (765 ILCS 67/999)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 999. Effective date. This Act takes effect January 1, 2018.
(Source: P.A. 100-416, eff. 1-1-18.)