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ISBA Statehouse Review for the week of April 24, 2014

ISBA Director of Legislative Affairs Jim Covington reviews legislation in Springfield of interest to ISBA members. In this episode he covers The Residential Real Property Disclosure Act (Senate Bill 2597), Common Interest Community Association Act (Senate Bill 3057), Condominium Property Act (Senate Bill 2892), Driving on suspended license (Senate Bill 3547) and Transfer on Death Instrument (TODI) Cleanup (Senate Bill 2656). More information on each bill is available below.

The Residential Real Property Disclosure Act. Senate Bill 2597 (Bertino-Tarrant, D-Plainfield; Walsh, D-Joliet) amends the Residential Real Property Disclosure Act to add material defects in the window or doors to the list of disclosures required under the Act. Passed the Senate and is now in the House.

Common Interest Community Association Act. Senate Bill 3057 (Haine, D-Alton; Kosel, R-Mokena) amends the Act to exempt the requirement that requires a unit owner leasing a unit to deliver a copy of a lease to the association. It will still be a requirement if the community instruments provide otherwise. Passed the Senate and now in the House.

Condominium Property Act. Senate Bill 2892 (Mulroe, D-Chicago; Cassidy, D-Chicago) makes the following declarations unenforceable as against public policy if the declarations affect the common elements or more than one unit and require any of the following before the board can take legal action on behalf of the association: (1) consent of a percentage of unit owners, (2) arbitration, (3) mediation before an action may be filed in court, or (4) a restriction or delay in the board’s ability to bring an action affecting the common elements or more than one unit.

An otherwise unenforceable provision may be enforced if it is approved by a unit-owner percentage vote of not less than 75% of the total in the aggregate of the undivided ownership of the common elements after the election of the first-unit owner board of managers.

Senate Bill 2982 has passed the Senate and is now in the House.

Driving on suspended license. Senate Bill 3547 (Rose, R-Mahomet; Anthony, D-Yorkville) makes it a Class 4 felony to drive on a suspended license during a period of summary suspension imposed because a driver failed or refused to submit to chemical testing regardless of whether the driver is eligible for a Monitoring Device Driving Permit. Passed the Senate and now in the House.

Transfer on Death Instrument (TODI) Cleanup. Senate Bill 2656 (Barickman, R-Bloomington-Normal; Sims, D-Chicago). Makes these revisions to the Act as follows:

• Including a new Section 75 that makes the recording of a Notice of Death Affidavit a permissive action that can be taken by the beneficiary to confirm title to the residential real estate, but that this is not a mandatory requirement to perfect title.
•  This proposal eliminates the right of an agent acting under a durable power of attorney from creating or revoking a transfer on death instrument. It does not affect the agent’s right or power to sell, transfer or encumber the residential real estate if so authorized under the terms of the power of attorney agreement. The main reason for the change is that it is inconsistent with the requirement that the owner be legally competent at the time he or she creates or revokes a TODI.

•  This proposal clarifies that only substantial compliance with the execution formalities is required. The title industry raised concerns about the validity of a transfer on death instrument, if, for example, the notary clause failed to include in the acknowledgment the names of the witnesses who witnessed the owner’s signature, or if the attestation clause failed to contain a provision stating the witnesses believed the owner to be of sound mind and memory at the time of its execution.

• This proposal excludes residential cooperatives and expands the definition of common elements associated with condominiums to include “any parking unit or other amenity used with and owned by the owner of the residential condominium unit.”

• Clarifies that acceptance of the transfer on death instrument by the beneficiary during the owner’s lifetime is not a requirement.
 
• Section 90 added a bona fide purchaser provision to the statute of limitations.

Posted on Apr 24, 2014 by Chris Bonjean | Comments (0)
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