101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1604

 

Introduced , by Rep. Ann M. Williams

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 155/18.1

    Amends the Title Insurance Act. In provisions concerning choice of title insurance company, provides that it is the public policy of the State that parties to a contract for the sale of residential real property who are obligated to pay for certain products and services related to title insurance (rather than title insurance) have the right to also choose the independent escrowee that will provide those products and services. Makes conforming changes. Provides that for a county with a population not less than 500,000, a transaction for the sale and purchase or residential real property, the title insurance company issuing the owner's title insurance policy shall issue the lender's title insurance policy for that transaction if the policy is required by the lender. Provides an exception to that if the buyer and seller agree otherwise or the buyer or seller is offered a discount of fees as an inducement to split the title insurance policies, unless the title insurance company issuing the owner's policy agrees to offer the same discount of fees.


LRB101 04673 SMS 49682 b

 

 

A BILL FOR

 

HB1604LRB101 04673 SMS 49682 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Title Insurance Act is amended by changing
5Section 18.1 as follows:
 
6    (215 ILCS 155/18.1)
7    Sec. 18.1. Choice of title insurance company.
8    (a) It is declared to be the public policy of this State
9that, except as limited by subsection (b), parties to a
10contract for the sale of residential real property who are
11obligated to provide and pay for products and services
12enumerated in Section 19 title insurance have the right to
13choose the title insurance company, and title insurance agent,
14or independent escrowee that will provide such products and
15services title insurance. No lender or producer of title
16business, as the term is defined in this Act, shall, as a
17condition of making a loan, providing services of any kind,
18including, but not limited to, services as a broker, agent,
19lender, attorney, or otherwise, require a party to a contract
20for the sale of residential real property who is obligated by
21that contract to furnish and pay for products and services
22enumerated in Section 19 title insurance at their expense, to
23procure such products and services title insurance from a title

 

 

HB1604- 2 -LRB101 04673 SMS 49682 b

1insurance company, or title insurance agent, or independent
2escrowee other than a title insurance company, or title
3insurance agent, or independent escrowee that is chosen by the
4party paying for the products and services enumerated in
5Section 19 title insurance.
6    (b) This subsection (b) applies exclusively to counties in
7Illinois having populations not less than 500,000. In a
8transaction for the sale and purchase of residential real
9property, as defined in this Act, the title insurance company
10issuing the owner's title insurance policy shall issue the
11lender's title insurance policy for that transaction if such a
12policy is required by the lender, unless:
13        (1) the buyer and seller agree otherwise; or
14        (2) the buyer or seller is offered a discount of fees
15    as an inducement to split the title insurance policies,
16    unless, prior to the closing of the transaction, the title
17    insurance company chosen to issue the owner's policy agrees
18    to offer the same discount of fees.
19    As used in this Section, "fees" includes those fees for
20products and services enumerated in Section 19.
21(Source: P.A. 95-570, eff. 8-31-07.)