Full Text of SB2919 103rd General Assembly
SB2919eng 103RD GENERAL ASSEMBLY | | | SB2919 Engrossed | | LRB103 35721 LNS 65801 b |
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| 1 | | AN ACT concerning civil law. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Code of Civil Procedure is amended by | 5 | | changing Sections 15-1506 and 15-1507 and by adding Sections | 6 | | 15-1507.2 and 15-1510.1 as follows: | 7 | | (735 ILCS 5/15-1506) (from Ch. 110, par. 15-1506) | 8 | | Sec. 15-1506. Judgment. | 9 | | (a) Evidence. In the trial of a foreclosure, the evidence | 10 | | to support the allegations of the complaint shall be taken in | 11 | | open court, except: | 12 | | (1) where an allegation of fact in the complaint is | 13 | | not denied by a party's verified answer or verified | 14 | | counterclaim, or where a party pursuant to subsection (b) | 15 | | of Section 2-610 of the Code of Civil Procedure states, or | 16 | | is deemed to have stated, in its pleading that it has no | 17 | | knowledge of such allegation sufficient to form a belief | 18 | | and attaches the required affidavit, a sworn verification | 19 | | of the complaint or a separate affidavit setting forth | 20 | | such fact is sufficient evidence thereof against such | 21 | | party and no further evidence of such fact shall be | 22 | | required; and | 23 | | (2) where all the allegations of fact in the complaint |
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| 1 | | have been proved by verification of the complaint or | 2 | | affidavit, the court upon motion supported by an affidavit | 3 | | stating the amount which is due the mortgagee, shall enter | 4 | | a judgment of foreclosure as requested in the complaint. | 5 | | (b) Instruments. In all cases the evidence of the | 6 | | indebtedness and the mortgage foreclosed shall be exhibited to | 7 | | the court and appropriately marked, and copies thereof shall | 8 | | be filed with the court. | 9 | | (c) Summary and Default Judgments. Nothing in this Section | 10 | | 15-1506 shall prevent a party from obtaining a summary or | 11 | | default judgment authorized by Article II of the Code of Civil | 12 | | Procedure. | 13 | | (d) Notice of Entry of Default. When any judgment in a | 14 | | foreclosure is entered by default, notice of such judgment | 15 | | shall be given in accordance with Section 2-1302 of the Code of | 16 | | Civil Procedure. | 17 | | (e) Matters Required in Judgment. A judgment of | 18 | | foreclosure shall include the last date for redemption and all | 19 | | rulings of the court entered with respect to each request for | 20 | | relief set forth in the complaint. The omission of the date for | 21 | | redemption shall not extend the time for redemption or impair | 22 | | the validity of the judgment. | 23 | | (f) Special Matters in Judgment. Without limiting the | 24 | | general authority and powers of the court, special matters may | 25 | | be included in the judgment of foreclosure if sought by a party | 26 | | in the complaint or by separate motion. Such matters may |
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| 1 | | include, without limitation: | 2 | | (1) a manner of sale other than public auction; | 3 | | (2) a sale by sealed bid; | 4 | | (3) an official or other person who shall be the | 5 | | officer to conduct the sale other than the one customarily | 6 | | designated by the court; | 7 | | (4) provisions for non-exclusive broker listings or | 8 | | designating a duly licensed real estate broker nominated | 9 | | by one of the parties to exclusively list the real estate | 10 | | for sale; | 11 | | (5) the fees or commissions to be paid out of the sale | 12 | | proceeds to the listing or other duly licensed broker, if | 13 | | any, who shall have procured the accepted bid; | 14 | | (6) the fees to be paid out of the sale proceeds to an | 15 | | auctioneer, if any, who shall have been authorized to | 16 | | conduct a public auction sale; | 17 | | (7) whether and in what manner and with what content | 18 | | signs shall be posted on the real estate; | 19 | | (8) a particular time and place at which such bids | 20 | | shall be received; | 21 | | (9) a particular newspaper or newspapers in which | 22 | | notice of sale shall be published; | 23 | | (10) the format for the advertising of such sale, | 24 | | including the size, content and format of such | 25 | | advertising, and additional advertising of such sale; | 26 | | (11) matters or exceptions to which title in the real |
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| 1 | | estate may be subject at the sale; | 2 | | (12) a requirement that title insurance in a specified | 3 | | form be provided to a purchaser at the sale, and who shall | 4 | | pay for such insurance; | 5 | | (13) whether and to what extent bids with mortgage or | 6 | | other contingencies will be allowed; | 7 | | (14) such other matters as approved by the court to | 8 | | ensure sale of the real estate for the most commercially | 9 | | favorable price for the type of real estate involved. | 10 | | (g) Agreement of the Parties. If all of the parties agree | 11 | | in writing on the minimum price and that the real estate may be | 12 | | sold to the first person who offers in writing to purchase the | 13 | | real estate for such price, and on such other commercially | 14 | | reasonable terms and conditions as the parties may agree, then | 15 | | the court shall order the real estate to be sold on such terms, | 16 | | subject to confirmation of the sale in accordance with Section | 17 | | 15-1508. | 18 | | (h) Postponement of Proving Priority. With the approval of | 19 | | the court prior to the entry of the judgment of foreclosure, a | 20 | | party claiming an interest in the proceeds of the sale of the | 21 | | mortgaged real estate may defer proving the priority of such | 22 | | interest until the hearing to confirm the sale. | 23 | | (i) Effect of Judgment and Lien. | 24 | | (1) Upon the entry of the judgment of foreclosure, all | 25 | | rights of a party in the foreclosure against the mortgagor | 26 | | provided for in the judgment of foreclosure or this |
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| 1 | | Article shall be secured by a lien on the mortgaged real | 2 | | estate, which lien shall have the same priority as the | 3 | | claim to which the judgment relates and shall be | 4 | | terminated upon confirmation of a judicial sale in | 5 | | accordance with this Article. | 6 | | (2) Upon the entry of the judgment of foreclosure, the | 7 | | rights in the real estate subject to the judgment of | 8 | | foreclosure of (i) all persons made a party in the | 9 | | foreclosure and (ii) all nonrecord claimants given notice | 10 | | in accordance with paragraph (2) of subsection (c) of | 11 | | Section 15-1502, shall be solely as provided for in the | 12 | | judgment of foreclosure and in this Article. | 13 | | (3) Entry of a judgment of foreclosure does not | 14 | | terminate or otherwise affect a bona fide lease of a | 15 | | dwelling unit in residential real estate in foreclosure, | 16 | | whether or not the lessee has been made a party in the | 17 | | foreclosure. | 18 | | (Source: P.A. 98-514, eff. 11-19-13.) | 19 | | (735 ILCS 5/15-1507) (from Ch. 110, par. 15-1507) | 20 | | Sec. 15-1507. Judicial Sale. | 21 | | (a) In General. Except as provided in Sections 15-1402 and | 22 | | 15-1403, upon entry of a judgment of foreclosure, the real | 23 | | estate which is the subject of the judgment shall be sold at a | 24 | | judicial sale in accordance with this Section 15-1507. | 25 | | (b) Sale Procedures. |
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| 1 | | (1) Upon expiration of the reinstatement period and | 2 | | the redemption period in accordance with subsection (b) or | 3 | | (c) of Section 15-1603 or upon the entry of a judgment of | 4 | | foreclosure after the waiver of all rights of redemption, | 5 | | except as provided in subsection (g) of Section 15-1506, | 6 | | the real estate shall be sold at a sale as provided in this | 7 | | Article, on such terms and conditions as shall be | 8 | | specified by the person conducting the sale court in the | 9 | | judgment of foreclosure . A sale may be conducted by any | 10 | | judge , or sheriff , or other person as set forth in | 11 | | paragraph (3) of subsection (f) of Section 15-1506. The | 12 | | person conducting the sale has the discretion to set the | 13 | | terms of the sale . | 14 | | (2) Without limiting the general authority and powers | 15 | | of the court, the mortgagee, in a foreclosure under this | 16 | | Article may request that the judge, sheriff, or other | 17 | | person conduct the sale either in person, if available, or | 18 | | online or both. | 19 | | (c) Notice of Sale. The mortgagee, or such other party | 20 | | designated by the court, in a foreclosure under this Article | 21 | | shall give public notice of the sale as follows: | 22 | | (1) The notice of sale shall include at least the | 23 | | following information, but an immaterial error in the | 24 | | information shall not invalidate the legal effect of the | 25 | | notice: | 26 | | (A) the name, address and telephone number of the |
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| 1 | | person to contact for information regarding the real | 2 | | estate; | 3 | | (B) the common address and other common | 4 | | description (other than legal description), if any, of | 5 | | the real estate; | 6 | | (C) a legal description of the real estate | 7 | | sufficient to identify it with reasonable certainty; | 8 | | (D) a description of the improvements on the real | 9 | | estate; | 10 | | (E) the times specified in the judgment, if any, | 11 | | when the real estate may be inspected prior to sale; | 12 | | (F) the time and place of the sale , including: ; | 13 | | (i) whether the sale will take place online, | 14 | | in person, or both; and | 15 | | (ii) the website where the online bidding may | 16 | | take place, if applicable; | 17 | | (G) the terms of the sale; | 18 | | (H) the case title, case number and the court in | 19 | | which the foreclosure was filed; | 20 | | (H-1) in the case of a condominium unit to which | 21 | | subsection (g) of Section 9 of the Condominium | 22 | | Property Act applies, the statement required by | 23 | | subdivision (g)(5) of Section 9 of the Condominium | 24 | | Property Act; | 25 | | (H-2) in the case of a unit of a common interest | 26 | | community to which subsection (g-1) of Section 18.5 of |
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| 1 | | the Condominium Property Act applies, the statement | 2 | | required by subdivision (g-1) of Section 18.5 of the | 3 | | Condominium Property Act; and | 4 | | (I) such other information ordered by the Court. | 5 | | (2) The notice of sale shall be published at least 3 | 6 | | consecutive calendar weeks (Sunday through Saturday), once | 7 | | in each week, the first such notice to be published not | 8 | | more than 45 days prior to the sale, the last such notice | 9 | | to be published not less than 7 days prior to the sale, by: | 10 | | (i) (A) advertisements in a newspaper circulated to the | 11 | | general public in the county in which the real estate is | 12 | | located, in the section of that newspaper where legal | 13 | | notices are commonly placed and (B) separate | 14 | | advertisements in the section of such a newspaper, which | 15 | | (except in counties with a population in excess of | 16 | | 3,000,000) may be the same newspaper, in which real estate | 17 | | other than real estate being sold as part of legal | 18 | | proceedings is commonly advertised to the general public; | 19 | | provided, that the separate advertisements in the real | 20 | | estate section need not include a legal description and | 21 | | that where both advertisements could be published in the | 22 | | same newspaper and that newspaper does not have separate | 23 | | legal notices and real estate advertisement sections, a | 24 | | single advertisement with the legal description shall be | 25 | | sufficient; in counties with a population of more than | 26 | | 3,000,000, the notice required by this item (B) shall be |
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| 1 | | published in a newspaper different from the newspaper that | 2 | | publishes the notice required by item (A), and the | 3 | | newspaper in which the notice required by this item (B) is | 4 | | published shall be a newspaper published in the township | 5 | | in which the real estate is located; and (ii) such other | 6 | | publications as may be further ordered by the court. | 7 | | (3) The party who gives notice of public sale in | 8 | | accordance with subsection (c) of Section 15-1507 shall | 9 | | also give notice to all parties in the action who have | 10 | | appeared and have not theretofore been found by the court | 11 | | to be in default for failure to plead. Such notice shall be | 12 | | given in the manner provided in the applicable rules of | 13 | | court for service of papers other than process and | 14 | | complaint, not more than 45 days nor less than 7 days prior | 15 | | to the day of sale. After notice is given as required in | 16 | | this Section a copy thereof shall be filed in the office of | 17 | | the clerk of the court entering the judgment, together | 18 | | with a certificate of counsel or other proof that notice | 19 | | has been served in compliance with this Section. | 20 | | (4) The party who gives notice of public sale in | 21 | | accordance with subsection (c) of Section 15-1507 shall | 22 | | again give notice in accordance with that Section of any | 23 | | adjourned sale; provided, however, that if the adjourned | 24 | | sale is to occur less than 60 days after the last scheduled | 25 | | sale, notice of any adjourned sale need not be given | 26 | | pursuant to this Section. In the event of adjournment, the |
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| 1 | | person conducting the sale shall, upon adjournment, | 2 | | announce the date, time and place upon which the adjourned | 3 | | sale shall be held or post on its website the date, time, | 4 | | and place upon which the adjourned sale shall be held . | 5 | | Notwithstanding any language to the contrary, for any | 6 | | adjourned sale that is to be conducted more than 60 days | 7 | | after the date on which it was to first be held, the party | 8 | | giving notice of such sale shall again give notice in | 9 | | accordance with this Section. | 10 | | (5) Notice of the sale may be given prior to the | 11 | | expiration of any reinstatement period or redemption | 12 | | period. | 13 | | (6) No other notice by publication or posting shall be | 14 | | necessary unless required by order or rule of the court. | 15 | | (7) The person named in the notice of sale to be | 16 | | contacted for information about the real estate may, but | 17 | | shall not be required, to provide additional information | 18 | | other than that set forth in the notice of sale. | 19 | | (d) Election of Property. If the real estate which is the | 20 | | subject of a judgment of foreclosure is susceptible of | 21 | | division, the court may order it to be sold as necessary to | 22 | | satisfy the judgment. The court shall determine which real | 23 | | estate shall be sold, and the court may determine the order in | 24 | | which separate tracts may be sold. | 25 | | (e) Receipt upon Sale. Following Upon and at the sale of | 26 | | mortgaged real estate, the person conducting the sale shall |
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| 1 | | give to the purchaser a receipt of sale. The receipt shall | 2 | | describe the real estate purchased and shall show the amount | 3 | | bid, the amount paid, the total amount paid to date and the | 4 | | amount still to be paid therefor. An additional receipt shall | 5 | | be given at the time of each subsequent payment. | 6 | | (f) Certificate of Sale. Upon payment in full of the | 7 | | amount bid, the person conducting the sale shall issue, in | 8 | | duplicate, and give to the purchaser a Certificate of Sale. | 9 | | The Certificate of Sale shall be in a recordable form, | 10 | | describe the real estate purchased, indicate the date and | 11 | | place of sale and show the amount paid therefor. The | 12 | | Certificate of Sale shall further indicate that it is subject | 13 | | to confirmation by the court. The duplicate certificate may be | 14 | | recorded in accordance with Section 12-121. The Certificate of | 15 | | Sale shall be freely assignable by endorsement thereon. | 16 | | (g) Interest after Sale. Any bid at sale shall be deemed to | 17 | | include, without the necessity of a court order, interest at | 18 | | the statutory judgment rate on any unpaid portion of the sale | 19 | | price from the date of sale to the date of payment. | 20 | | (Source: P.A. 100-685, eff. 8-3-18.) | 21 | | (735 ILCS 5/15-1507.2 new) | 22 | | Sec. 15-1507.2. Online judicial sale. | 23 | | (a) The sheriff or other person may conduct the sale | 24 | | online in accordance with this Article. | 25 | | (b) The sheriff or other person may engage a third-party |
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| 1 | | online sale provider to assist with performance of the online | 2 | | sale. Any third-party online sale provider engaged by a | 3 | | sheriff must be acquired through a process that confirms that | 4 | | the provider meets the requirements set forth in this Article. | 5 | | (c) In this Section, "third-party online sale provider" | 6 | | means any sale platform or services provider that is not the | 7 | | person conducting the sale or a party to the case involving the | 8 | | judicial sale and that is engaged by the person conducting the | 9 | | sale to assist with conducting the sale online in accordance | 10 | | with State law. | 11 | | (d) The sheriff or other person may charge an additional | 12 | | fee payable upon the completion of the sale as a reasonable | 13 | | expense of the sale for costs associated with conducting the | 14 | | sale online as approved by the court. | 15 | | (e) For any foreclosure involving residential real estate, | 16 | | such fee must not to exceed $400, unless a higher fee is | 17 | | otherwise approved by the court. Any fees not charged as a cost | 18 | | in the case may be agreed to and paid directly by the judge, | 19 | | sheriff, other person conducting the sale or a party to the | 20 | | case without limitation. The fees charged under this Section | 21 | | shall not reduce or impact the sheriff's fees set for in | 22 | | Section 4-5001 and 4-12001 of the Counties Code. | 23 | | (f) To conduct a sale online, the sheriff or other person | 24 | | conducting the sale must demonstrate to the court's | 25 | | satisfaction documented processes and procedures for | 26 | | conducting online auctions, adequate record keeping, and the |
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| 1 | | ability to comply with the requirements in this Article. | 2 | | (g) If the sale takes place both online and in person, all | 3 | | bids accepted during the auction shall be simultaneously | 4 | | announced at the in-person sale and visible to the public | 5 | | online at the time the bids are placed. Any maximum bid amounts | 6 | | provided by bidders ahead of the sale shall not be visible to | 7 | | the public until the bid is placed. | 8 | | (h) There shall be no fee charged to the public to view | 9 | | properties for sale online or to participate in any auction in | 10 | | person or online. | 11 | | (i) Any third-party online sale provider may not maintain | 12 | | custody of sale funds on behalf of the judge, sheriff, or other | 13 | | person conducting the sale unless specifically approved by the | 14 | | court to maintain custody of funds on their behalf. | 15 | | (j) The sheriff or other person conducting the sale shall | 16 | | require a person seeking to bid electronically online to | 17 | | complete a registration process that includes providing | 18 | | information relevant to properly identify the bidder, contact | 19 | | the bidder, and complete the sale of the property as | 20 | | determined by the sheriff or other person conducting the sale. | 21 | | (k) If the person registering to bid is an individual, the | 22 | | information required shall include the individual's name, | 23 | | electronic mail address, and telephone number. | 24 | | (l) If the person registering to bid is an entity, the | 25 | | information required in this Section shall include the | 26 | | entity's legal name, name of an individual contact person for |
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| 1 | | the entity, electronic mail address, and telephone number. | 2 | | (m) The sheriff or other person conducting the sale online | 3 | | shall require all bidders who wish to participate in bidding | 4 | | online to have their identity verified through an | 5 | | identification verification process before a bid can be placed | 6 | | online, which may include verification through a government | 7 | | issued identification, biometric verification, or other method | 8 | | of verification as determined by the judge, sheriff, or other | 9 | | person conducting the sale. If a bidder's identity cannot be | 10 | | verified through the verification process, then the bidder may | 11 | | be prohibited from participating in the online sale. | 12 | | (n) The purchaser at the sale shall submit to the person | 13 | | conducting the sale the following information prior to the | 14 | | sale being finalized: | 15 | | (1) All winning purchasers shall provide any required | 16 | | information to be checked against the federal Office for | 17 | | Foreign Assets Control sanction list by the person | 18 | | conducting the sale before finalizing the purchase of the | 19 | | property. The person conducting the sale shall check the | 20 | | winning purchaser against the sanction list before an | 21 | | order approving the sale may be entered. | 22 | | (2) If the purchaser is an individual, the information | 23 | | shall include the individual's name, physical mailing | 24 | | address, electronic mail address, and any other | 25 | | information requested by the person conducting the sale to | 26 | | adequately identify and contact the purchaser; |
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| 1 | | (3) If the purchaser is an entity, the information | 2 | | shall include the entity's legal name, trade name if | 3 | | different from its legal name, state and date of | 4 | | formation, mailing address, proof of business registration | 5 | | with the State of Illinois, and the name of an individual | 6 | | contact person for the entity, electronic mail address, | 7 | | and the person's telephone number. | 8 | | (4) If the purchaser fails to provide the required | 9 | | information within the time period designated by the | 10 | | judge, sheriff, or other person conducting the sale, the | 11 | | purchaser is in default and the judge, sheriff, or other | 12 | | person conducting the sale may void the sale and proceed | 13 | | with a resale. | 14 | | (o) Any person conducting a sale online must obtain | 15 | | evidence of satisfactory internal informational security | 16 | | controls that meet industry standards and are maintained by | 17 | | the platform used to conduct online sales. Upon the request of | 18 | | the court or interested party to the case, the person | 19 | | conducting the sale shall provide such evidence of | 20 | | satisfactory internal controls regarding data security that | 21 | | may be in the form of an annual SOC2 Report, with the ability | 22 | | to test and report on the design effectiveness (Type 1) and | 23 | | operating effectiveness (Type 2) of the platform's controls, | 24 | | or another form acceptable to the court ensuring performance | 25 | | and security requirements are met. | 26 | | (p) The person conducting the sale and the third-party |
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| 1 | | online sale provider may engage in activities to promote and | 2 | | market the sale to encourage and facilitate bidding, including | 3 | | listing the property on real estate websites and conduct email | 4 | | campaigns. The person conducting the sale or the third-party | 5 | | online sale provider is solely responsible for paying all fees | 6 | | or expenses incurred in connection with such activities. | 7 | | (735 ILCS 5/15-1510.1 new) | 8 | | Sec. 15-1510.1. Third-party purchaser fees and costs. | 9 | | Notwithstanding any other provision of law to the contrary, | 10 | | for the sale of residential real estate, no fee, including a | 11 | | buyer's premium, may be charged to a third-party bidder or | 12 | | purchaser who is not a party to the case at the sale of real | 13 | | estate under this Article beyond the winning bid amount to | 14 | | cover an expense of sale. |
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