SB 1622 — RESIDENTIAL PROPERTY HOME ACT

*LRB09408913BDD39133b* SB1622 94THEngrossed GENERALLRB094 ASSEMBLY08913 StateBDD of39133 Illinoisb andAN 2006ACT SB1622concerning Introducedrevenue. 2/23/2005, by Sen.

Edward D.

Maloney SYNOPSIS AS INTRODUCED:

New Act Creates the Residential Real Property Homestead Exemptions Disclosure Act.

Requires the sellers of residential real property to disclose to the buyers of the property the amount of each homestead exemption that applies to the seller’s ownership of the property.

Sets forth the requirements and procedures for making the disclosure.

Provides that a buyer may void the sales contract if the disclosure is defective.

Provides that no action for a violation of the Act may be commenced more than one year after the date of the buyers occupancy or the date that the instrument of conveyance is with each disclosure.

Contains other provisions.

Effective immediately.ed LRB094 08913 BDD 39133 b A BILL FOR SB1622 LRB094 08913 BDD 39133 b AN ACT concerning revenue.

Section 1.

Short title.

This Act may be cited as the Residential Real Property Homestead Exemptions Disclosure Act.

Purpose.The Property Tax Code is amended by changing Section 31-25 as follows:

The(35 purposeILCS of200/31-25) thisSec. Act is to require, at the time of contracting, the sellers of residential real estate to provide to the buyers the dollar amount reduction of each homestead exemption applicable to the real property.

This31-25. information is important to the buyer due to the fact that buyer may not qualify for each of the homestead exemptions and the annual amount of property taxes to be paid is a factor in determining if that real property is affordable.

SectionTransfer 10.declaration.

Definitions.At the time a deed, a document transferring a controlling interest in real property, or trust document is presented for recordation, or within 3 business days after the transfer is effected, whichever is earlier, there shall also be presented to the recorder or registrar of titles a declaration, signed by at least one of the sellers and also signed by at least one of the buyers in the transaction or by the attorneys or agents for the sellers or buyers.

AsThe useddeclaration inshall thisstate Act,information unlessincluding, thebut contextnot otherwiselimited requiresto: the following terms have the meaning given in this Section:

"Residential(a) realthe property"value meansof the real property improvedor withbeneficial notinterest lessin thanreal oneproperty norlocated more than 6 residential dwelling units, units in residentialIllinois cooperatives,so ortransferred; condominium units.

"Seller"(b) meansthe everyparcel personidentifying whonumber is an owner, beneficiary of athe trust,property; contract purchaser, or lessee of a ground lease, who has an interest (legal or equitable) in residential real property.

"Prospective(c) buyer"the meanslegal anydescription person or entity negotiating or offering to become an owner or lessee of residentialthe realproperty; property by means of a transfer for value to which this Act applies.

"Homestead(d) exemptions"the meansdate anyof exemptionthe fromdeed, propertythe taxesdate asthe providedtransfer inwas Sectionseffected, 15-170,or 15-172,the 15-175,date and 15-176 of the Propertytrust Taxdocument; Code.

SB1622(e) -the 2type -of LRB094deed, 08913transfer, BDDor 39133trust bdocument; Section 15.

Applicability.(f) the address of the property;

Except(g) asthe providedtype in Section 20, this Act applies to any transfer by sale, exchange, installment land sale contract, assignment of beneficialimprovement, interest,if leaseany, withon anthe optionproperty; to purchase, ground lease, or assignment of ground lease of residential real property.

Section(h) 20.information as to whether the transfer is between related individuals or corporate affiliates or is a compulsory transaction;

Inapplicability.(i) the lot size or acreage;

The(j) provisionsthe value of thispersonal Actproperty dosold notwith apply to any of the following:real estate;

(1)(k) Transfersthe pursuantyear tothe courtcontract order,was including,initiated butif not limited to, transfers ordered by a probate court in administration of an estate,installment transferssale; between spouses resulting from a judgment of dissolution of marriage or legal separation, transfers pursuant to an order of possession, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance.

(2)and Transfers(l) fromany ahomestead mortgagorexemptions, toas aprovided mortgagee by deed in lieuSections of15-170, foreclosure15-172, or15-175, consentand judgment,15-176; transfer by judicial deed issued pursuant to a foreclosure sale to the successful bidder or the assignee of a certificate of sale, transfer by a collateral assignment of a beneficial interest of a land trust, or a transfer by a mortgagee or a successor in interest to the mortgagee’s secured position or a beneficiary under a deed in trust who has acquired the real property by deed in lieu of foreclosure, consent judgment or judicial deed issued pursuant to a foreclosure sale.

(3)and Transfers(m) bythe aname, fiduciaryaddress, inand thetelephone coursenumber of the administrationperson ofpreparing athe decedent’sdeclaration. estate, guardianship estate, conservatorship, or trust.

(4)Except Transfersas fromprovided onein co-ownerSection to31-45, onea deed, a document transferring a controlling interest in real SB1622 Engrossed - 2 - LRB094 08913 BDD 39133 b property, or moretrust otherdocument co-owners.shall not be accepted for recordation unless it is accompanied by a declaration containing all the information requested in the declaration.

(5)When Transfersthe pursuantdeclaration is signed by an attorney or agent on behalf of sellers or buyers who have the power of direction to testatedeal with the title to the real estate under a land trust agreement, the trustee being the mere repository of record legal title with a duty of conveying the real estate only when and if directed in writing by the beneficiary or intestatebeneficiaries succession.having the power of direction, the attorneys or agents executing the declaration on behalf of the sellers or buyers need identify only the land trust that is the repository of record legal title and not the beneficiary or beneficiaries having the power of direction under the land trust agreement.

(6)The Transfersdeclaration madeform toshall abe spouseprescribed orby to a person or persons in the linealDepartment lineand ofshall consanguinitycontain ofsales oneinformation orquestions. more of the sellers.

(7)For Transferssales occurring during a period in which the provisions of Section 17-10 require the Department to oradjust fromsale anyprices governmentalfor entity.seller paid points and prevailing cost of cash, the declaration form shall contain questions regarding the financing of the sale.

SB1622The -subject 3of -the LRB094financing 08913questions BDDshall 39133include bany Sectiondirect 25.seller participation in the financing of the sale or information on financing that is unconventional so as to affect the fair cash value received by the seller.

DutiesThe intent of seller.the sales and financing questions is to aid in the reduction in the number of buyers required to provide financing information necessary for the adjustment outlined in Section 17-10.

AFor sellersales ofoccurring residentialduring reala propertyperiod shallin completewhich allthe applicableprovisions itemsof inSection 17-10 require the disclosureDepartment documentto describedadjust insale Sectionsprices 35for seller paid points and 40prevailing cost of thiscash, Act.the declaration form shall include, at a minimum, the following data:

The(a) seller shallpaid deliverpoints, to(b) the prospectivesales buyerprice, the(c) writtentype disclosureof statementfinancing required(conventional, byVA, thisFHA, Actseller-financed, beforeor theother), signing(d) ofdown apayment, written(e) agreementterm, by(f) theinterest sellerrate, (g) type and prospectivedescription buyerof thatinterest would,rate subject(fixed, toadjustable or renegotiable), and (h) an appropriate place for the satisfactioninclusion of anyspecial negotiatedfacts contingencies,or requireSB1622 theEngrossed prospective- buyer3 to- acceptLRB094 a08913 transferBDD of39133 theb residentialcircumstances, realif property.any.