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90_SB1737
815 ILCS 505/2T from Ch. 121 1/2, par. 262T
Amends the Consumer Fraud and Deceptive Business
Practices Act. Provides that no person or entity providing a
real estate settlement service may refer a client to another
settlement service provider on the condition that the
provider shall use the settlement services of a particular
entity. Makes other changes. Effective immediately.
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1 AN ACT to amend the Consumer Fraud and Deceptive Business
2 Practices Act by changing Section 2T.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Consumer Fraud and Deceptive Business
6 Practices Act is amended by changing Section 2T as follows:
7 (815 ILCS 505/2T) (from Ch. 121 1/2, par. 262T)
8 Sec. 2T. Conditions on real estate loans or settlement
9 services. No person, firm, corporation, partnership, or
10 association which may extend credit or make a loan secured by
11 an interest in real estate that which is or is to be improved
12 with a single family residence or any residential condominium
13 unit occupied or to be occupied as a principal residence by
14 either the borrower as an individual or, if the borrower is
15 the trustee of a trust, by a beneficiary of that trust, shall
16 require, either directly or indirectly, as a condition
17 precedent to making such loan or extending such credit (a)
18 that any seller, borrower, mortgagor or debtor to whom such
19 money or credit is extended negotiate, obtain, or contract
20 for title insurance through a particular insurer, agent, or
21 broker; or (b) that any seller, borrower, mortgagor, or
22 debtor pay for a title commitment or policy other than a
23 title commitment or policy issued at the request of the
24 seller, borrower, mortgagor, or other debtor. No person or
25 entity providing a real estate "settlement service", as that
26 term is defined in Section 3(3) of the federal Real Estate
27 Settlement Procedures Act, may refer a client to another
28 settlement service provider on the condition that the
29 provider, either directly or indirectly, utilize the
30 settlement services of a particular entity. Nothing contained
31 in this Section shall be construed to prohibit the lender
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1 from requiring title insurance as a condition of making a
2 loan secured by an interest in real estate. The lender may
3 refuse to make the loan or may reject the title insurer or
4 the proposed policy if the lender believes on reasonable
5 grounds that the title insurance will afford insufficient
6 financial protection to the lender or insufficient protection
7 as defined under regulations administered by the Federal Home
8 Loan Bank Board. Nothing contained in this Section shall be
9 construed to affect any provision in a contract between a
10 seller and buyer of real estate with respect to the selection
11 of title insurance. Nothing contained in this Section shall
12 be construed as expanding the applicability of this Act to
13 actions or transactions exempted from the provisions of this
14 Act by Section 10b of this Act.
15 (Source: P.A. 85-1209; 85-1351; 85-1440.)
16 Section 99. This Act takes effect upon becoming law.