Section 1050.2320  Calculation of Property Value

a)         Means of Calculating the Property Value.

1)         The lender shall use the estimated fair market value to determine the Starting Home Value of the property.

2)         The lender shall use the same method for calculating the Starting Home Value and the Final Home Value.  Nothing in this subsection (a)(2) shall limit a borrower's ability to obtain and use additional valuations to determine the estimated fair market value, Starting Home Value, or Ending Home Value pursuant to the terms of the shared appreciation agreement.

3)         The Starting Home Value shall be calculated using either an appraisal or the average of at least two distinct non-appraisal valuation methods, which may include an AVM, a BPO, or another method approved by the Department.

4)         In complying with the requirements of subsection (a)(2), a lender may use a value stipulated by the borrower as the Starting Home Value on an initial estimate disclosure provided under Section 1050.2310(a)(2) if the lender has not yet obtained an appraisal, AVM, or BPO and the terms of the disclosure are subject to change.

b)         Sale of Property.  If a shared appreciation agreement terminates with the sale of the property, the Ending Home Value may not exceed the sale price if:

1)         The sale was an arms-length sale;

2)         The property was not sold as part of a foreclosure; and

3)         The borrower did not retain an interest in the property, including an interest as a life estate.

(Source:  Added at 50 Ill. Reg. 8010, effective June 1, 2026)