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90_SB1726
New Act
Creates the Zoning Certification Act. Provides that at
the time an agreement to transfer real property is made, the
transferor shall certify in writing to the transferee and
lender the zoning classifications of the real property to be
transferred and all contiguous real property. Provides for a
waiver of certification. Provides for damages if the
transferor fails to make the required certification.
LRB9010423DJcd
LRB9010423DJcd
1 AN ACT concerning real property.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Zoning Certification Act.
6 Section 5. Definitions. In this Act:
7 "Lender" means an individual or any other entity that
8 advances funds secured by an interest in real property or
9 secured by a collateral assignment of a beneficial interest
10 in an Illinois land trust holding title to real property.
11 "Transfer" means:
12 (1) a conveyance of an interest in real property by
13 deed or other instrument;
14 (2) a lease of real property if the term, when
15 considering all options that may be exercised, exceeds 40
16 years;
17 (3) an assignment, including transfer of the power
18 of direction, of more than 25% of the beneficial interest
19 in an Illinois land trust;
20 (4) a mortgage of real property; or
21 (5) a collateral assignment of a beneficial interest
22 in an Illinois land trust.
23 "Transfer" does not, however, include the following:
24 deeds or trust documents that, without additional
25 consideration, confirm, correct, modify, or supplement a deed
26 or trust document previously recorded; tax deeds; deeds or
27 trust documents of release of property that is security for a
28 debt or other obligation; deeds of partition; conveyances
29 occurring as a result of a foreclosure of a mortgage or other
30 lien on real property; easements; or conveyances of interests
31 in minerals, oil, or gas.
-2- LRB9010423DJcd
1 "Transferee" means a buyer, mortgagee, grantee, or lessee
2 of real property, an assignee of a collateral assignment of a
3 beneficial interest in an Illinois land trust, or an assignee
4 of a more than 25% beneficial interest in an Illinois land
5 trust.
6 "Transferor" means a seller, grantor, mortgagor, or
7 lessor of real property, an assignor of a collateral
8 assignment of the beneficial interest in an Illinois land
9 trust, an assignor of a more than 25% beneficial interest in
10 an Illinois land trust, or, in the case of a transfer by the
11 trustee of an Illinois land trust, the owner of the
12 beneficial interest in the land trust.
13 Section 10. Certification.
14 (a) At the time an agreement to transfer real property
15 is made, the transferor shall certify in writing to the
16 transferee and lender the zoning classifications of the real
17 property to be transferred and all contiguous real property.
18 The certification shall be in a form prescribed by the
19 Commissioner of Banks and Real Estate.
20 (b) If the agreement to transfer real property is in
21 writing, the certification shall be part of the agreement.
22 (c) A waiver of the time requirements for certification
23 or a waiver of certification must be in writing and signed by
24 the transferee and lender.
25 Section 15. Damages. If a transferor fails to make the
26 certification required by this Act or if a transferor
27 knowingly makes a false certification, the transferee and the
28 lender may each recover from the transferor in a civil action
29 any actual damages incurred as a result of the transferor's
30 failure to certify or false certification.