SB3815 102ND GENERAL ASSEMBLY

LRB102 21862 LNS 30983 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3815

Introduced 1/21/2022, by Sen. Donald P. DeWitte

SYNOPSIS AS INTRODUCED:

765 ILCS 940/40
765 ILCS 940/55

Amends the Mortgage Rescue Fraud Act. Requires, within 3 days of the execution of a distressed property conveyance contract, the distressed property purchaser to provide a copy of the contract to any party that has purchased taxes in connection with the distressed property at a tax sale. Allows a party that does not receive a copy of a distressed property conveyance contract to bring a civil action under the Consumer Fraud and Deceptive Business Practices Act.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Mortgage Rescue Fraud Act is amended by changing Sections 40 and 55 as follows:

(765 ILCS 940/40)

Sec. 40. Notice of cancellation of a distressed property conveyance contract.

(a) The contract must contain in immediate proximity to the space reserved for the owner of the distressed property's signature a conspicuous statement in a size equal to at least 12-point boldface type, if the contract is printed, or in capital letters, if the contract is typed, as follows:

"You may cancel this contract for the sale of your house, without any penalty or obligation, at any time before ................................(Date and time of day). See the attached notice of cancellation form for an explanation of this right."

The distressed property purchaser shall accurately enter the date and time of day on which the cancellation right ends.

(b) The contract must be accompanied by a completed form in duplicate, captioned "NOTICE OF CANCELLATION" in a size equal to a 12-point boldface type, if the contract is printed, or in capital letters, if the contract is typed, followed by a space in which the distressed property purchaser shall enter the date on which the owner of the distressed property executes any contract. This form must be attached to the contract, must be easily detachable, and must contain in at least 12-point type, if the contract is printed, or in capital letters, if the contract is typed, the following statement written in the same language as used in the contract:

"NOTICE OF CANCELLATION

...........................

(Enter date contract signed)

You may cancel this contract for the sale of your home, without any penalty or obligation, at any time before ....................(enter date and time of day). To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice to .......................(Name of purchaser) at .............................................. (Street address of purchaser's place of business) NOT LATER THAN ................................ (Enter date and time of day).

I hereby cancel this transaction on ............... (Date) ............................................... (Seller's signature)".

(c) The distressed property purchaser shall provide the owner of the distressed property with a copy of the contract and the attached notice of cancellation immediately at the time the contract is executed by all parties.

(c-5) Within 3 days of the execution of a distressed property conveyance contract, if the contract has not been canceled, the distressed property purchaser shall provide a copy of the contract to any party that has purchased taxes in connection with the distressed property at a tax sale conducted pursuant to Article 21 of the Property Tax Code.

(d) The distressed property purchaser shall record the contract with the recorder of deeds in the county where the distressed property is located within 10 days of its execution, provided the contract has not been canceled.

(e) The 5 business days during which the owner of the distressed property may cancel the contract shall not begin to run until all parties to the contract have executed the contract and the distressed property purchaser has complied with all the requirements of this Section.

(Source: P.A. 94-822, eff. 1-1-07.)

(765 ILCS 940/55)

Sec. 55. Civil remedies.

(a) A violation of any of the provisions of this Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General or State's Attorney by the Consumer Fraud and Deceptive Business Practices Act shall be available to him or her for the enforcement of this Act.

(b) A consumer who suffers loss by reason of any violation of any provision of this Act or a party that does not receive a copy of a distressed property conveyance contract as required by subsection (c-5) of Section 40 may bring a civil action in accordance with the Consumer Fraud and Deceptive Business Practices Act to enforce that provision. All remedies and rights granted to a consumer, or to a party suffering actual damages, by the Consumer Fraud and Deceptive Business Practices Act shall be available to a the consumer or a party bringing such an action. The remedies and rights provided for in this Act are not exclusive, but cumulative, and all other applicable claims, including, but not limited to, those brought under the doctrine of equitable mortgage, are specifically preserved.

(Source: P.A. 94-822, eff. 1-1-07.)