Illinois Contract for Deed Law


Contract for Deed – General – Illinois

Related Illinois Legal Forms

Illinois State Statutes

CHAPTER 765 PROPERTY
ACT 70. Dwelling Structure Contract Act.

765 ILCS 70/1

Sec. 1. As used in this Act, unless the context requires otherwise:

(a) “Single dwelling unit” means any apartment, efficiency apartment, kitchenette apartment, sleeping room, dwelling room or any other portion of any building or structure that is occupied or resided in by a family unit.

(b) “Family unit” means any person maintaining a household, or 2 or more persons maintaining a common household. A person is deemed to be maintaining a household even though the room or rooms being occupied are only sleeping rooms.

(c) “Dwelling structure” means any private home or residence, or any building or structure containing one or more single dwelling units for one or more family units, living independently of each other. A family unit is deemed to live independently of another family unit even though the family units may be required to share cooking facilities, laundry facilities or bathroom facilities. Dwelling structure units do not include public or private hospitals, public or private school dormitories, fraternity houses, convents, monasteries, mental institutions, penal institutions, seminaries, State licensed nursing homes or shelter care homes, or any federal, State, county or municipal institution or home.

(d) “Contract seller” means the owner of a dwelling structure, or the owner’s agent who executes a contract to sell a dwelling structure for the owner.

(e) “Contract” means any contract or agreement whereby a contract seller agrees to sell and a buyer agrees to buy a dwelling structure and the contract seller continues to have an interest, as security for the purchase price or otherwise, in that property. The term “contract” includes contracts for deeds, bonds for deeds or any other sale or legal device whereby a dwelling structure is sold, conveyed or transferred for a consideration.

CHAPTER 765 PROPERTY
ACT 75. Dwelling Unit Installment Contract Act.

765 ILCS 75/1

Sec. 1. As used in this Act, unless the context requires otherwise:

(a) “Family unit” means any person maintaining a household, or 2 or more persons maintaining a common household. A person is deemed to be maintaining a household even though the room or rooms being occupied are only sleeping rooms.

(b) “Dwelling structure” means any private home or residence, or any building or structure to be occupied or resided in by 12 or less family units. A family unit is deemed to live independently of another family unit even though the family units may be required to share cooking facilities, laundry facilities or bathroom facilities. Dwelling structures do not include public or private hospitals, public or private school dormitories, fraternity houses, convents, monasteries, mental institutions, penal institutions, seminaries, State-licensed nursing homes or shelter care homes, or any federal, State, county or municipal institution or home.

(c) “Dwelling code” means any municipal or county ordinance, building code, or law establishing construction, plumbing, heating, electrical, fire prevention, sanitation or other health and safety standards applicable to dwellings.

(d) “Contract seller” means the owner of a legal or beneficial interest in a dwelling structure, or the owner’s agent who executes an installment contract to sell a dwelling structure for the owner.

(e) “Installment contract” means any contract or agreement, including contracts for deeds, bonds for deeds or any other sale or legal device, whereby a contract seller agrees to sell and a buyer agrees to buy a dwelling structure, wherein the consideration for such sale is payable in installments for a period of at least one year after buyer takes possession of the dwelling structure and the contract seller continues to have an interest, or security for the purchase price or otherwise in that property.

(f) “Certificate of compliance” means an affidavit executed by a contract seller stating that the dwelling structure was inspected within 30 days before the contract was executed by an Inspector of the Municipality or County wherein the premises is located, and that at the date of the execution of the contract the dwelling structure is not in violation of any dwelling code.

CHAPTER 765 PROPERTY
ACT 86. Land Sales Registration Act of 1999.
Article 10. Business Practices

765 ILCS 86/10-5
[EDITORS' NOTE: THE TEXT OF THIS SECTION IS SCHEDULED TO BE REPEALED EFFECTIVE JANUARY 1, 2010.]

Sec. 10-5. Sales contracts. Every sales contract relating to the purchase of real property in a subdivision shall clearly state:

(1) the legal description of the parcel being sold;

(2) the principal balance of the purchase price outstanding at the date of the sale contract, after full credit is given for down payment;

(3) that the purchaser has the unconditional option to rescind a contract until midnight of the seventh day following the signing of the contract if the purchaser received a copy of the property report as required in Section 5-10, and 2 years to rescind the contract if the property report was not received;

(4) which party is obligated to pay the costs of issuance of the required title policy and recording of all documents;

(5) the latest date by which any promised services or amenities, which shall include but not be limited to all those identified in the public property report or any form of advertising, will be provided or completed; and

(6) that any deed, contract for deed, or installment contract shall be recorded within 180 days after the date of acceptance.

CHAPTER 765 PROPERTY
ACT 940. Mortgage Rescue Fraud Act.

765 ILCS 940/30

Sec. 30. Distressed property conveyance contract terms. Every contract required by Section 25 must contain the entire agreement of the parties, be fully assignable, and survive delivery of any instrument of conveyance of the distressed property. Every lease entered into pursuant to a contract required by Section 25 is terminable at will by the distressed property owner, without liability. Every contract required by Section 25 must include the following terms:

(1) the name, business address, and the telephone number of the distressed property purchaser;

(2) the address of the distressed property;

(3) the total consideration to be given by the distressed property purchaser or tax lien payor in connection with or incident to the sale;

(4) a complete description of the terms of payment or other consideration including, but not limited to, any services of any nature that the distressed property purchaser represents he or she will perform for the owner of the distressed property before or after the sale;

(5) a complete description of the terms of any related agreement designed to allow the owner of the distressed property to remain in the home such as a rental agreement, repurchase agreement, contract for deed, or lease with option to buy;

(6) a notice of cancellation as provided in this Section;

(7) the following notice in at least 12-point boldface type, if the contract is printed, or in capital letters, if the contract is typed, and completed with the name of the distressed property purchaser, immediately above the statement required by this Section:

“NOTICE REQUIRED BY ILLINOIS LAW

Until your right to cancel this contract has ended, __________________ (Name) or anyone working for __________________ (Name) CANNOT ask you to sign or have you sign any deed or any other document. You are urged to have this contract reviewed by an attorney of your choice within 5 business days of signing it.”; and

(8) if title to the distressed property will be transferred in the conveyance transaction, the following notice in at least 14-point boldface type if the contract is printed, or in capital letters if the contract is typed, and completed with the name of the distressed property purchaser, immediately above the statement required by this Section:

“NOTICE REQUIRED BY ILLINOIS LAW

As part of this transaction, you are giving up title to your home.”.

Illinois Case Law

The legislative purpose in permitting a contract purchaser to cure a default before possession of the real estate is to afford the contract purchaser an opportunity to avoid a loss of money previously paid and to avoid a forfeiture of all rights under the contract. Bovinett v. Rollberg, 109 Ill.App.3d 41 (5th Dist. 1982) in interpreting FEDA.

In situations where the contract purchaser still has more than 75 percent of the original contract price to pay, the Forcible Entry and Detainer Act, does not mandate the issuance of a stay, but instead leaves the matter up to the trial court’s sound discretion. Shippey v. Traub, 138 Ill.App.3d 434 (3d Dist. 1985).

“Courts of equity abhor forfeitures, but where a forfeiture has been declared in the manner prescribed by the parties to a contract the court will give effect to the contract. Nonpayment of a great bulk of the purchase price for a protracted time would alone support the finding of the trial court that a forfeiture had occurred.” Id. at 434.