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(765 ILCS 155/) Transfer Fee Covenant Act. (765 ILCS 155/1) Sec. 1. Short title. This Act may be cited as the Transfer Fee Covenant Act. (Source: P.A. 96-1345, eff. 1-1-11.) (765 ILCS 155/5) Sec. 5. Legislative findings. The General Assembly finds and declares that the public policy of this State favors the marketability of real property and the transferability of interests in real property free of title defects or unreasonable restraints on alienation. The General Assembly further finds and declares that transfer fee covenants violate this public policy by impairing the marketability and transferability of real property and by constituting an unreasonable restraint on alienation regardless of the duration of the covenants or the amount of the transfer fees, and do not run with the title to the property or bind subsequent owners of the property under common law or equitable principles. (Source: P.A. 96-1345, eff. 1-1-11.) (765 ILCS 155/10) Sec. 10. Definitions. As used in this Act: "Transfer" means the sale, gift, conveyance, assignment, inheritance, or other transfer of an ownership interest in real property located in this State. "Transfer fee" means a fee or charge required by a transfer fee covenant and payable upon the transfer of an interest in real property, or payable for the right to make or accept such transfer, regardless of whether the fee or charge is a fixed amount or is determined as a percentage of the value of the property, the purchase price, or other consideration given for the transfer. The following are not transfer fees for purposes of this Act: (1) any consideration payable by the grantee to the grantor for the interest in real property being transferred, including any subsequent additional consideration for the property payable by the grantee based upon any subsequent appreciation, development, or sale of the property. For the purposes of this paragraph (1), an interest in real property may include a separate mineral estate and its appurtenant surface access rights; (2) any commission payable to a licensed real estatebroker for the transfer of real property under an agreement between the broker and the grantor or the grantee, including any subsequent additional commission for that transfer payable by the grantor or the grantee based upon any subsequent appreciation, development, or sale of the property; (3) any interest, charges, fees, or other amounts payable by a borrower to a lender under a loan secured by a mortgage against real property, including but not limited to any fee payable to the lender for consenting to an assumption of the loan or a transfer of the real property subject to the mortgage, any fees or charges payable to the lender for estoppel letters or certificates, and any other consideration allowed by law and payable to the lender in connection with the loan; (4) any rent, reimbursement, charge, fee, or other amount payable by a lessee to a lessor under a lease, including but not limited to any fee payable to the lessor for consenting to an assignment, subletting, encumbrance, or transfer of the lease; (5) any consideration payable to the holder of an option to purchase an interest in real property or the holder of a right of first refusal or first offer to purchase an interest in real property for waiving, releasing, or not exercising the option or right upon the transfer of the property to another person; (6) any tax, fee, charge, assessment, fine, or other amount payable to or imposed by a governmental authority, as long as such tax, fee, charge, assessment, fine, or other amount payable is not imposed or payable by virtue of a covenant or declaration; (7) any fee, charge, assessment, fine, or other amount payable to a homeowners', condominium, cooperative, mobile home, or property owners' association pursuant to a declaration or covenant or law applicable to such association, including, but not limited to, fees or charges payable for estoppel letters or certificates issued by the association or its authorized agent; or (8) Any fee, charge, assessment or other amount payable to an entity exempt from taxation under Section 501(c)(3) of the Internal Revenue Code whose purpose includes the conservation of land, natural areas, open space or water areas or the preservation of native plants or animals, biotic communities or geographic formations located within the same subdivision or planned unit development or within one-half mile of the real property to which the transfer fee covenant attaches for the exclusive or non-exclusive use and benefit of the owners of that real property. "Transfer fee covenant" means a declaration or covenant purporting to affect real property which requires or purports to require the payment of a transfer fee to the declarant or other person specified in the declaration or covenant or to their successors or assigns upon a subsequent transfer of an interest in the real property. (Source: P.A. 96-1345, eff. 1-1-11.) (765 ILCS 155/15) Sec. 15. Transfer fee covenant prohibition. A transfer fee covenant recorded in this State on or after the effective date of this Act shall not run with the title to real property and is not binding on or enforceable at law or in equity against any subsequent owner, purchaser, or mortgagee of any interest in real property as an equitable servitude or otherwise. Any lien purporting to secure the payment of a transfer fee under a transfer fee covenant recorded in this State on or after the effective date of this Act is void and unenforceable. This Section does not mean that a transfer fee covenant or lien recorded in this State before the effective date of this Act is presumed valid and enforceable.
(Source: P.A. 96-1345, eff. 1-1-11.)
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Condominium Property Act is amended by
changing Section 22.1 as follows:
(765 ILCS 605/22.1)
(from Ch. 30, par. 322.1)
(a) In the event of any resale of a condominium
unit by a unit owner other than the developer such owner shall
obtain from the Board of Managers and shall make available for
inspection to the prospective purchaser, upon demand, the
(1) A copy of the Declaration, by-laws, other
and any rules and regulations.
(2) A statement of any liens, including a statement of
the account of the unit setting forth the amounts of
unpaid assessments and other charges due and owing as
authorized and limited by the provisions of Section 9 of
this Act or the condominium instruments.
(3) A statement of any capital expenditures
anticipated by the unit owner's association within the
current or succeeding
(4) A statement of the status and amount of any
reserve for replacement fund and any portion of such fund
earmarked for any specified project by the Board of
(5) A copy of the statement of financial condition of
the unit owner's association for the last fiscal year for
which such statement is available.
(6) A statement of the status of any pending suits or
judgments in which the unit owner's association is a
(7) A statement setting forth what insurance coverage
is provided for all unit owners by the unit owner's
(8) A statement that any improvements or alterations
made to the unit, or the limited common elements assigned
thereto, by the prior unit owner are in good faith
believed to be in compliance with the condominium
(9) The identity and mailing address of the principal
officer of the unit owner's association or of the other
officer or agent as is specifically designated to receive
(b) The principal officer of the unit owner's association
or such other officer as is specifically designated shall
furnish the above information when requested to do so in
writing and within
days of the request.
(c) Within 15 days of the recording of a mortgage or trust
deed against a unit ownership given by the owner of that unit
to secure a debt, the owner shall inform the Board of Managers
of the unit owner's association of the identity of the lender
together with a mailing address at which the lender can
receive notices from the association. If a unit owner fails or
refuses to inform the Board as required under subsection (c)
then that unit owner shall be liable to the association for all
such other damages, if any, incurred by the association as a
result of such failure or refusal.
A reasonable fee
, not to exceed $375,
covering the direct
out-of-pocket cost of providing such information and copying
may be charged by the association or its Board of Managers to
the unit seller for providing such information.
year after the effective date of this amendatory Act of the
102nd General Assembly, the $375 fee shall be increased or
decreased, as applicable, by a percentage equal to the
percentage change in the consumer price index-u during the
preceding 12-month calendar year. "Consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. An association may charge an additional $100
for rush service completed within 72 hours.
(Source: P.A. 87-692.)