HB1425 95TH GENERAL ASSEMBLY

LRB095 08963 AJO 29154 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1425

Introduced 2/21/2007, by Rep. Dan Reitz

SYNOPSIS AS INTRODUCED:

New Act

Creates the Illinois Radon Awareness Act. Provides definitions, including "residential real property" which means a manufactured housing lot or a parcel of real property, improved with not less than one nor more than 4 residential dwelling units. Provides that the Act applies to the sale of any interest in residential real property by an owner or through a real estate broker. Provides that the seller shall provide a prospective buyer with a pamphlet entitled "Radon Testing Guidelines for Real Estate Transactions", prepared by the Illinois Emergency Management Agency. Provides that buyer has the right to have the property inspected for radon. Provides that the buyer and seller, and any brokers involved, must sign a statement acknowledging that the buyer was notified of his or her rights under the Act and received the information required by the Act. Provides that a seller is not required to have the property tested for radon, but must furnish the buyer with a copy of any radon tests conducted on the property. Provides that the Act does not apply to transfers: pursuant to court order; from a mortgagor to a mortgagee in lieu of foreclosure; by a fiduciary; from a co-owner to another co-owner; through testate or intestate succession; to a spouse or a relative in the lineal line of consanguinity; that are part of a seller's relocation; or, to or from a governmental entity. Effective immediately.

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 1. Short title. This Act may be cited as the Illinois Radon Awareness Act.

Section 5. Definitions. As used in this Act, unless the context otherwise requires:

(a) "Agent" means a licensed real estate "broker" or "salesperson", as those terms are defined in Section 1-10 of the Real Estate License Act of 2000, acting on behalf of a seller or buyer of residential real property.

(b) "Buyer" means any individual, partnership, corporation or trustee entering into an agreement to purchase any estate or interest in real property.

(c) "Final settlement" means the time at which the parties have signed and delivered all papers and consideration to convey title to the estate or interest in the residential real property being conveyed.

(d) "IEMA" means the Illinois Emergency Management Agency Division of Nuclear Safety.

(e) "Mitigation" means measures designed to permanently reduce indoor radon concentrations according to procedures described in 32 Illinois Administrative Code Part 422.

(f) "Radon test" means a measurement of indoor radon concentrations in accordance with 32 Illinois Administrative Code Part 422 for performing radon measurements within the context of a real estate transaction.

(g) "Radon hazard" means any condition that causes exposure to indoor radon concentrations at or in excess of the United States Environmental Protection Agency's, or IEMA's recommended Radon Action Level.

(h) "Residential real property" means any estate or interest in a manufactured housing lot or a parcel of real property, improved with not less than one nor more than 4 residential dwelling units.

(i) "Seller" means any individual, partnership, corporation or trustee transferring residential real property in return for consideration.

(j) "Subagent" means any individual, partnership, corporation or trustee working as a broker or salesperson acting on behalf of an agent.

Section 10. Radon testing and disclosure.

(a) The following activities shall be completed before the buyer is obligated under any contract to purchase residential real property that is not otherwise an exempt transaction pursuant to Section 20. Nothing in this Section implies a positive obligation on the seller to conduct any radon testing or mitigation activities.

(1) Except as excluded by Section 20 of this Act, every buyer of any interest in residential real property shall be provided the IEMA pamphlet entitled "Radon Testing Guidelines for Real Estate Transactions" (or an equivalent pamphlet approved for use by IEMA) and an Illinois Radon Warning Statement stating that the property may present the potential for exposure to radon.

(2) Except as excluded by Section 20 of this Act, the seller of any interest in residential real property is required to disclose to the buyer and each agent any information on radon tests previously performed or radon test reports in the seller's possession, and notify the buyer and each agent of any known radon hazards.

(3) The Illinois Emergency Management Agency shall develop the content of the Illinois Radon Warning Statement that the seller shall provide a copy of the statement to the buyer of any interest in residential real property.

(4) The Department of Financial and Professional Regulation shall develop a form that will document that subsections (a), (b), and (c) of this Section have occurred. The form shall be utilized for every transfer of residential real property as described in this Section and shall include:

A) The property address;

B) The seller's disclosure of the presence of radon hazards, if known;

C) The buyer's acknowledgement that information about radon was received;

D) The buyer's acknowledgement of the buyer's option to test for radon;

E) The buyer's acknowledgement, if applicable, that the buyer waives the opportunity to test for radon;

F) The seller's acknowledgement that the seller has been informed of the seller's obligation and is aware of that seller's responsibility to ensure compliance with this Section; and

G) Signatures of the buyer and seller and of any the agents attesting to the above and the date so signed.

(b) If any of the disclosure activities identified in subsection a occurs after the buyer has made an offer to purchase the residential real property, the seller shall complete the required disclosure activities prior to accepting the buyer's offer and allow the buyer an opportunity to review the information and possibly amend the offer.

Section 15. Applicability. This Act shall apply to transfers by sale of residential real property.

Section 20. The provisions of this Act do not apply to the following:

(1) Transfers pursuant to court order, including, but not limited to, transfers ordered by a probate court in administration of an estate, transfers between spouses resulting from a judgment of dissolution of marriage or legal separation, transfers pursuant to an order of possession, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance.

(2) Transfers from a mortgagor to a mortgagee by deed in lieu of foreclosure or consent judgment, transfer by judicial deed issued pursuant to a foreclosure sale to the successful bidder or the assignee of a certificate of sale, transfer by a collateral assignment of a beneficial interest of a land trust, or a transfer by a mortgagee or a successor in interest to the mortgagee's secured position or a beneficiary under a deed in trust who has acquired the real property by deed in lieu of foreclosure, consent judgment or judicial deed issued pursuant to a foreclosure sale.

(3) Transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust.

(4) Transfers from one co-owner to one or more other co-owners.

(5) Transfers pursuant to testate or intestate succession.

(6) Transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the sellers.

(7) Transfers from an entity that has taken title to residential real property from a seller for the purpose of assisting in the relocation of the seller, so long as the entity makes available to all prospective buyers a copy of the disclosure form furnished to the entity by the seller.

(8) Transfers to or from any governmental entity.

Section 99. Effective date. This Act takes effect upon becoming law.