Full Text of HB6854 93rd General Assembly
HB6854 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB6854
Introduced 02/09/04, by Kevin Joyce SYNOPSIS AS INTRODUCED: |
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Creates the New Residential Building and Sales Contract Act. Lists requirements that must be stated in every contract for the construction and sale or contract for the sale of a new residential living unit. Provides for the greater of actual damages or $5,000, plus reasonable costs and attorney's fees for violation of the Act.
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A BILL FOR
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HB6854 |
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LRB093 19913 LCB 45656 b |
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| AN ACT concerning contracts.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the New | 5 |
| Residential Building and Sales Contract Act. | 6 |
| Section 5. Compliance. Any contract for the construction | 7 |
| and sale or contract for the sale of a new residential living | 8 |
| unit is required to comply with the terms and provisions of | 9 |
| this Act. | 10 |
| Section 10. Definitions. As used in this Act: | 11 |
| "New residential living unit" means a structure intended to | 12 |
| be occupied for residential purposes by a single family, | 13 |
| including single family homes, duplexes, and townhouses but | 14 |
| excluding condominiums or cooperatives, that has not been | 15 |
| previously occupied by a person other than an owner, family | 16 |
| member, employee, stockholder, officer, or director of the | 17 |
| owner for more than one year and that has had a final | 18 |
| certificate of occupancy or been ready to be occupied for less | 19 |
| then 3 years. | 20 |
| "Owner" means the person or entity in title to the real | 21 |
| estate on which the new residential living unit is or will be | 22 |
| located and any employee, agent, or affiliated person or entity | 23 |
| of that person or entity in title to the real estate. | 24 |
| Section 15. Contract requirements. Every contract for the | 25 |
| construction and sale or contract for the sale of a new | 26 |
| residential living unit shall clearly state: | 27 |
| (1) the legal description of the parcel being sold; | 28 |
| (2) that the purchaser has the unconditional option to | 29 |
| rescind the contract until midnight of the seventh day | 30 |
| following the signing of the contract; |
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HB6854 |
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LRB093 19913 LCB 45656 b |
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| (3) which party is obligated to pay the costs of | 2 |
| issuance of the required title policy, recording of all | 3 |
| documents, and other similar closing costs; | 4 |
| (4) whether the owner has any interest in any other | 5 |
| entities or service providers that the purchaser is | 6 |
| required to use in connection with the transaction, such as | 7 |
| a title insurance agent, mortgage broker or lender, escrow | 8 |
| agent, or insurance brokerage company, the nature of that | 9 |
| interest, and any compensation, fee, or other remuneration | 10 |
| paid to or received by the owner in connection with the | 11 |
| transaction; | 12 |
| (5) the building codes to be followed or that were | 13 |
| followed in the construction of the new residential living | 14 |
| unit; | 15 |
| (6) that the purchaser is not represented by the owner | 16 |
| or his or her employee or agent and that the purchaser | 17 |
| should consider seeking representation or advice from a | 18 |
| third party unrelated to and unaffiliated with the owner; | 19 |
| (7) that the implied warranty of liability applies, or | 20 |
| if not, the terms of the warranty concerning the new | 21 |
| residential living unit cannot be for a period of less than | 22 |
| one year from the date the buyer occupies the new | 23 |
| residential living unit and that the warranty must cover | 24 |
| all major systems of the new residential living unit and | 25 |
| the workmanship of the owner and all contractors and | 26 |
| subcontractors who may have participated in the | 27 |
| construction of the new residential living unit; | 28 |
| (8) that the purchaser can place 5% of the purchase | 29 |
| price in escrow to be held by the agreed upon escrowee | 30 |
| until the owner has closed on the sale of the new | 31 |
| residential living unit to purchaser and is ready to turn | 32 |
| over occupancy of the new residential living unit to the | 33 |
| purchaser; and | 34 |
| (9) all special service areas in which the new | 35 |
| residential living unit is located, the purpose of the | 36 |
| special service area, and the estimated annual cost to the |
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HB6854 |
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LRB093 19913 LCB 45656 b |
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| buyer. | 2 |
| Section 20. Damages. Any contract for the construction and | 3 |
| sale or contract for sale of a new residential living unit | 4 |
| entered into after the effective date of this Act that does not | 5 |
| comply with the provisions of this Act may be rescinded by the | 6 |
| purchaser until closing on the new residential living unit, or, | 7 |
| if a lawsuit is filed by purchaser after closing but prior to | 8 |
| occupancy, the purchaser shall be entitled to recover the | 9 |
| greater of the purchaser's actual damages or $5,000, plus | 10 |
| reasonable costs and attorney's fees from owner.
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