DR Legal News provides 5 reasons to like changes to the Real Estate License Act

Illinois REALTORS® advocated and achieved five changes to the Illinois Real Estate License Act during the 2017 Legislative Session. Read about this and more in the September DR Legal News.

The statutory changes take effect Jan. 1, 2018. Stay tuned to Illinois REALTORS® for guidance and rules regarding the implementation of the new provisions. In a nutshell, the changes should simplify and modernize continuing education, protect consumers, provide needed changes to help managing brokers oversee their licensees who encounter disciplinary proceedings, and increase efficiency at the Illinois Department of Financial and Professional Regulation.

The infographic will help managing brokers explain the changes to their brokers.

 

Supreme Court decision one of 6 case studies in latest DR Legal News

Bigstock Photo

In the September issue of Designated REALTOR® Legal News, Lisa Harms Hartzler of Sorling Northrup Attorneys provides analysis of six legal case studies, including a 5-3 Supreme Court decision regarding the Takings Clause in the Fifth Amendment to the U.S. Constitution.

Summaries of the case studies included:

  • U.S. Supreme Court drafts new test for 5th Amendment Takings claims.
  • Nuisance claim based only on aesthetic dislike of solar panels was not actionable.
  • Grocery store’s website found in violation of ADA.
  • Broker not liable for misrepresentation where Buyer had the same information.
  • Broker potentially liable for fraudulent actions of agent.
  • Company formed to maintain private dam did not have to replace it.

Find out more about these legal case studies.

DR Legal News: Read about top legal hotline queries so far this year

During the first six months of 2017, the Illinois REALTORS® Legal Hotline received the most questions about agency issues, according to the September issue of Designated REALTOR® Legal News.

The second most popular category of questions was contracts to purchase, followed by: the scope of the Illinois Real Estate License Act (RELA), advertising and RELA business practices, reported Betsy Urbance, Illinois REALTORS® Director of Legal Services. Read sample questions and their answers with just a couple clicks of your mouse.

Check out the September Designated REALTOR® Legal News.

Legal Minutes: Mold Disclosure

Betsy Urbance and Jon Broadbooks

In the newest episode of Legal Minutes, Betsy Urbance, Director of Legal Services at Illinois REALTORS®, sits down with VP of Communications Jon Broadbooks to discuss what the legal requirements are regarding mold disclosure, and why Illinois REALTORS® no longer offers a mold disclosure form on its website.

 

Members can watch the video here.

 

Illinois REALTORS® format change to seller disclosure report will help sellers

Urbance

A format change to the Illinois REALTORS® version of the Residential Real Property Disclosure Report will help seller clients and their REALTORS® better document when disclosures are presented to buyers.

The change follows the regular forms review process by the Illinois REALTORS®’ Legal Team. Members can sign in and see the report here.

“We gave serious consideration to the format change that might change or add another step to the completion process,” says Betsy Urbance, Illinois REALTORS® Director of Legal Services. “Please note the Illinois Residential Real Property Act has not been amended and brokerages may opt to not use the REALTORS®’ version of the form. Only the format for our form, which is available for our members’ use, has changed.”

Urbance explains the change:

“We purposely changed page 4 to give sellers proof they met their obligation to give the disclosure report and show relevant portions of the statute to the buyers prior to the buyers becoming bound by the contract. We acknowledge this might change the process a bit. However, based on real life experience in seller disclosure litigation, the inability of sellers to prove disclosures were given is problematic. Although the statute does not require buyers to sign disclosures, sellers are required to give the disclosures and statute in a timely manner. So, the change gives sellers a better way to prove their duties were met.

“Sellers should sign and date the form on the date it is provided to the buyers (or the buyers’ agents),” she says. “Sellers are required to provide this form/portion of the statute before buyers become obligated on the purchase contract. In other words, sellers should sign and date reports some time before contracts are agreed to by the parties.

“As a result, if buyers initially download forms from the MLS some time prior to making offers, once buyers make offers, sellers should ‘circle back’ and sign and date the forms on or at the time contracts are entered. Also, this provides sellers a chance to review initial disclosure reports for any needed changes. This is always recommended when properties have been on the market for some time. After all, what if between the time the buyer’s agent downloaded the report and the time of contract, the seller’s basement flooded after the second ‘100-year-rain’ in the last year?

“This change is our model, and we believe it puts our members (and their seller-clients) in the best position to reduce their risk … and help sellers prove they met their statutory obligations. Whether or not associations and/or brokerages take up this model is a matter of their business discretion.”