Beware: The Illinois Rent-to-Own Law Has Changed

Web Admin - Friday, May 18, 2018
Schaumburg real estate attorney rent-to-own contractsWhen purchasing real estate property, most homeowners obtain a mortgage, which provides them with certain legal protections, including in the case of foreclosure. However, following the financial crash of 2008, many potential homeowners have purchased homes through installment contracts (also known as rent-to-own agreements), allowing them to live in their home and pay down the purchase price over time.

These types of agreements provide low-income homeowners or those who are unable to qualify for a mortgage with the ability to purchase their own home. However, since the seller retains the title of the home until all payments have been made, some predatory sellers may use rent-to-own agreements to take advantage of buyers, especially if they fail to disclose issues related to property maintenance or building code compliance.

Changes to Illinois Law Regarding Installment Contracts

On January 1, 2018, a new state law went into effect that is intended to provide buyers with protections in an installment sales contract (often referred to as an Installment Contract for Sale of Real Estate, Articles of Agreement for Deed, or Installment Agreement for Deed). The Illinois Installment Sales Contract Act applies to sellers who sell three or more residential real estate properties in a single year, and it does not apply to agricultural property that is larger than four acres. The law contains the following new provisions:

- A seller must record a contract with the county recorder of deeds within 10 days of the sale of the property. If the contract is not recorded, the buyer can rescind the contract, and the seller must provide them with a refund of all payments made.

- A contract must contain a statement in large, bold type that informs the buyer of their right to obtain a home inspection and/or appraisal from a third party before signing the contract.

- If a building on the property has been condemned, the contract must contain a statement in large, bold type informing the seller of this fact.

- A contract must include a statement of what repairs the buyer is responsible for making to the property. The seller is responsible for making any repairs not included in this statement.

- If a buyer defaults on any payments, they have 90 days to make payments and cure the default before the seller can bring any action against them. If a buyer cannot cure the default, the seller must refund them any money they spent to perform repairs on the property.

- If a buyer defaults after paying at least 20% of the property’s purchase price, the seller must follow foreclosure procedures in order to evict the buyer from the property.

Contact an Inverness Real Estate Attorney

If you are planning to use an installment contract to buy or sell a home, an experienced attorney can review your contract to ensure that your rights are protected and that the correct legal procedures are followed. To schedule a personalized consultation, contact a Mount Prospect real estate lawyer at 847-934-6000.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Recent Posts


employee rights Buffalo Grove employment lawyer home inspection lawyer Des Plaines accident attorney probate fees Illinois law Rolling Meadows real estate attorney license suspension Long Grove real estate lawyer Whistleblower Claims Rolling Meadows DUI lawyer Illinois traffic laws Deer Park criminal attorney personal injury lawyer Crystal Lake personal injury attorney Arlington Heights injury attorney Barrington employment attorney dealing with problem employees Illinois jet ski accident lawyer marijuana child safety Illinois job attorney commercial real estate Barrington workers compensation attorney Illinois bicycle safety Arlington Heights personal injury attorney liability Barrington personal injury attorney real estate attorneys Chicago employment attorney Palatine corporate attorney Schaumburg personal injury lawyer Schaumburg personal injury attorney Inverness accident lawyer Palatine business attorney Palatine employment lawyer Arlington Heights insurance attorney dog bites Rolling Meadows Traffic Lawyer Des Plaines injury law firm senior citizens Arlington Heights lawyer Schaumburg traffic lawyer estate planning attorney Illinois trucking safety Crystal Lake medical malpractice law firm Joliet general practice lawyers Arlington Heights pedestrian accidents insurance claims Crystal Lake injury attorney DUI distracted driving accident victims nursing home negligence swimming pools Illinois attorney criminal defense Illinois insurance disputes Illinois LLC creation estate planning lawyer Affordable Care Act personal injury auto accidents crossover accidents Inverness real estate lawyer Palatine probate lawyer real estate zoning underage DUI capital gains tax Crystal Lake car accident lawyer traffic violations Barrington criminal defense lawyer slip and fall irrevocable trust Barrington employment law firm murder defense Buffalo Grove traffic attorney insurance dispute Illinois employment laws brain injury personal injury attorney motorcycle accident Illinois Sales Representative Act insurance claim dispute car crash injuries right to work digital media accounts, estate planning, Arlington Heights estate planning attorney, defective products Rolling Meadows insurance dispute lawyers Illinois criminal defense attorney uninsured motorist trucking accidents traumatic brain injury Palatine elder law attorney Arlington Heights wills and trusts attorney modern family estate planning Des Plaines drug crimes lawyer Crystal Lake estate planning lawyer Palatine drug lawyer healthcare criminal law estate planning Des Plaines real estate lawyer Schaumburg criminal attorney civil litigation attorney Des Plaines collections attorney unpaid assessment comp time Illinois employment lawyer Illinois insurance claims lawyers Chicago will attorney bicycle accidents loopholes Rolling Meadows accident lawyer cell phone accidents civil rights violation Palatine traffic lawyer Illinois real estate vacation home fines insurance denials Palatine insurance lawyer surgical mistakes Illinois estate planning law firm Schaumburg employment law attorneys real estate lawyer employment contract employment law, Illinois employment laws loss of consortium Chicago biking tips low-ball insurance settlement Arlington Heights Traffic Lawyer Palatine real estate lawyer personal injury claim Fair Labor Standards Act Crystal Lake criminal defense attorney criminal record insurance dispute attorney license Illinois pedestrian accident attorney Rolling Meadows personal injury lawyers Des Plaines involuntary manslaughter taxes Barrington civil litigation attorney Long Grove estate planning attorneys probate Illinois defective products attorney landlord elder law truck collisions Transfer on Death Instrument Illinois business law atorneys DUI defense Crystal Lake bike accident lawyer in terrorem provision Inverness probate lawyer hiring employees medical malpractice Jay Andrew drug crimes lawyer South Barrington real estate attorney Mount Prospect real estate lawyer insurance claim delay Rolling Meadows estate planning attorney preventable medical errors Home Remodeling Repair Act Buffalo Grove real estate attorney Rolling Meadows car accident lawyers no contest clauses Crystal Lake traffic lawyer Illinois will lawyer pedestrian-automobile accident defective products lawyer Palatine employment attorney Illinois injury lawyer Schaumburg car accident attorney homestead rights insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Palatine trusts lawyer agent insurance agents traffic violations defense Rolling Meadows medication errors traffic laws digital evidence Long Grove estate planning DMV overtime violations Schaumburg employment attorney natural gas explosion college kids Home Sale Contingencies Palatine traffic accidents Do Not Resuscitate Illinois Illinois employment law Arlington Heights TBI attorney caretaker rights holiday statistics denied insurance claim Barrington personal injury lawyer Illinois employee rights attorney. insurance disputes Inverness estate planning lawyer Crystal Lake pedestrian accident lawyer Buffalo Grove law firm Schaumburg Attorney Illinois traffic attorneys Illinois estate planning Retaliatory Discharge Illinois car accident attorney Illinois business lawyer Illinois lawyer trucking accident lawyers wrongful death meal breaks real estate attorney Illinois Human Rights Act Forcible Entry hands free device Barrington Illinois estate planning lawyer disability benefits natural gas Arlington Heights estate planning attorney Kenilworth estate planning attorney reckless homicide commercial leasing deed transfer Illinois wrongful termination lawyer Rolling Meadows corporate lawyer Arlington Heights employment attorney commercial leases Food and Drug Administration's Food Safety Modernization Act trauma after an accident Kenilworth estate planning lawyer Chicago car accident lawyer special needs trust foreclosure Rolling Meadows employment law attorney Schaumburg medical malpractice lawyer severance agreements workers compensation products liability Illinois collections attorney Inverness injury lawyer IRA trust transfer pedestrian accident owner responsibility Palatine injury attorney Rolling Meadows probate lawyer ACA employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys rumble strips Des Plaines personal injury attorney premises liability mortgage Schaumburg estate planning attorney car accident lawyer Rolling Meadows business lawyer Barrington litigation attorney small business Palatine law firm Liquor Control Act breathalyzer test bicycle dooring accidents Deer Park employment law attorney IRELA Kenilworth estate planning attorneys pregnant women Legal Info Palatine Attorney dynasty trusts probate claims traffic offenses digital assets drug crime Barrington business law firm Chicago trucking accident attorney Chicago insurance law firm problem employees foreclosed rental property Des Plaines DUI attorney Buffalo Grove traffic lawyers civil litigation denial of life insurance Illinois insurance attorney Barrington criminal lawyer spinal cord injury medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers speeding accidental death benefits insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys LLCs federal regulations for LLCs liability claims Illinois Probate Act of 1975 sexual harassment Rolling Meadows insurance lawyer Illinois civil litigation lawyer cell phone jet ski accidents Schaumburg insurance lawyers Rolling Meadows employment law attorneys Illinois trusts attorney Palatine civil litigation lawyer Palatine workers compensation lawyer caregiver Crystal Lake will lawyer life insurance personal injury accidents Illinois employment law firm Riverwoods estate planning lawyer cell phone tower data Palatine criminal defense lawyer unfunded trust fiduciary rule car accident employee misclassification automated cars estate planning trusts breach of contract Deer Park motorcycle accident lawyer wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Illinois registered agent IRS independent contractor Crystal Lake civil litigation lawyer investment property Illinois employment attorneys gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys back injuries Crystal Lake car accident attorney car accident lawyers Buffalo Grove personal injury attorney Rolling Meadows insurance attorney trustee Illinois real estate lawyer Inverness civil lawyer CAM driving Arlington Heights medical malpractice lawyer workers compensation benefits consent to a search federal crimes social media after death texting and driving Rolling Meadows personal injury lawyer product liability digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers denied insurance claims Des Plaines Traffic Lawyer Illinois personal injury attorney motorcycle accident lawyer Crystal Lake employment lawyer DGAA Illinois pet lawyer Illinois DUI attorney life insurance claims Detainer Actions Fourth of July Illinois insurance dispute lawyers Family Medical Leave Act Illinois traffic attorney Chicago will attorney, social media platforms, Illinois estate planning lawyer, Arlington Heights real estate lawyer probate process car collision Des Plaines real estate attorney real estate closing Des Plaines tax law firm Arlington Heights Attorney Illinois wills and trusts attorneys DNR Inverness traffic law firm rest breaks elder abuse life insurance policy Illinois personal injury lawyers Inverness elder law lawyer fatal car accidents murder Landlord Tenant Ordinance Illinois mortgages BAC appealing an insurance claim Arlington Heights trucking lawyer Rolling Meadows employment attorney insurance agent negligence Crystal Lake business law attorneys wrongful termination ken apicella traffic tickets whistleblower protections traumatic brain injuries Policy Cancellation Schaumburg Long Grove estate planning attorney Long Grove wills and trusts attorneys power of attorney manufacturing Schaumburg probate attorney Illinois probate lawyer Illinois rollover accident lawyers TBI estate attorney estate planning for college students changes to mortgage law DUI penalities Buffalo Grove probate lawyer Inverness personal injury attorney unauthorized overtime Illinois insurance lawyer field sobriety test food poisoning Thanksgiving Crystal Lake insurance lawyer pizza emoji Chicago employment lawyer construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Buffalo Grove corporate attorney Crystal Lake pet attorney Barrington employment law attorney trench injuries distracted driving accidents Crystal Lake law firm personal injury claims Arlington Heights car crash attorneys Palatine construction attorney Long Grove real estate attorney boating under the influence Barrington real estate lawyer Buffalo Grove insurance claim dispute lawyers Illinois elder law attorney murder charges Illinois insurance claim dispute lawyer Barrington boating accident attorney Rolling Meadows traffic attorney insurance negligence Rolling Meadows criminal attorney Schaumburg criminal law attorney gift taxes Rolling Meadows personal injury attorney Buffalo Grove injury lawyer Des Plaines drug lawyer Rolling Meadows traffic law firm Des Plaines criminal attorney medical malpractice compensation Illinois Workers’ Compensation Commission Chicago corporate attorney Crystal Lake accident attorney Arlington Heights criminal lawyer unpaid overtime pet law IRA benefits Crystal Lake tax lawyer life insurance lawyer Palatine personal injury lawyer Des Plaines pet law attorney Deer Park real estate law firm boating DUI living trust vs will real estate contract Des Plaines personal injury lawyer Barrington estate planning lawyer Crystal Lake employment attorney drunk driving statistics Employment Discrimination Law traffic deaths Barrington Traffic Lawyer liens tax attorney Schaumburg elder law lawyer Palatine estate planning lawyer corporate law income distribution deducation employees drunk driving Mount Prospect wills and trusts lawyers anesthesia errors Exclusions insurance claim denials guardianship attorney Rolling Meadows boating crash lawyer Arlington Heights accident attorney new real estate form Chicago estate planning lawyer overtime pay fiduciary rule delay underfunded trust Illinois boating accident lawyer workers comp wage theft Des Plaines motorcycle accident attorney Des Plaines insurance attorney Crystal Lake personal injury lawyer first degree murder ObamaCare Schaumburg wrongful death attorney marijuana crimes attorney power of attorney for healthcare PTSD Buffalo Grove personal injury lawyer preventing accidents wills digital information Arlington Heights tax lawyer business litigation blood alcohol content Illinois medical malpractice lawyers School Visitation Rights Act FSLA Illinois insurance claim dispute lawyers startup company Illinois workers compensation lawyer BUI medical research workplace sexual harassment creditors advance healthcare directive icy parking lots Chicago lawyer minimum wage Crystal Lake medical malpractice lawyer personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys privacy medical malpractice claims Illinois living will Deer Park traffic accident attorney Rolling Meadows marijuana attorney pain and suffering Barrington medical malpractice lawyers Deer Park traffic lawyer Des Plaines claims law firm Schaumburg construction accident lawyer Arlington Heights wills and trusts attorneys insurance attorney golf accidents Crystal Lake employment law attorney hit and run accident Super Mario work unions BAIID Crystal Lake medical malpractice attorneys license revocation Schaumburg drug defense lawyer Deer Park medical malpractice attorney trusts privacy laws Chicago traffic lawyer health insurance dispute Arlington Heights employment law attorneys Crystal lake insurance dispute attorney Inverness DUI lawyer Chicago estate planning Palatine civil attorney Schaumburg civil litigation attorney clemency employment law Illinois workplace lawyer forming a corporation in Illinois dram shop law bad faith insurance claims Illinois speeding lawyer Mount Prospect elder law attorney FMLA spinal cord injuries controlled substance Palatine corporate law attorneys Rolling Meadows tax attorney employee discrimination Illinois traffic ticket lawyer Illinois wills and trusts Illinois estate planning attorney Self-Directed IRA Accounts Barrington drug crime attorney DUI attorney Illinois personal injury lawyer real estate leasing Arlington Heights traffic attorney Inverness real estate attorney insurance claim denial construction accidents drug possession Buffalo Grove criminal defense lawyer car crash Illinois medical malpractice claim deadly crashes Buffalo Grove medical malpractice lawyers Chicago attorney internet Deer Park DUI lawyer texting while driving filing a medical malpractice claim healthcare claims personal injury law firm Illinois Transfer on Death Instrument Illinois personal injury Attorney Ken Apicella Palatine punch death financial advisors mass shooting POA drugs bike accident fault based insurance revenge porn employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Schaumburg estate attorney Deer Park accident attorney Chicago insurance claim attorneys installment contracts employment attorney car crashes insurance claim Rolling Meadows drug defense attorney drug crimes expungement estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers South Barrington real estate lawyer institutional trustee residential real estate Des Plaines personal injury lawyers Illinois workers compensation attorney Rolling Meadows insurance dispute lawyers, insurance dispute Schaumburg real estate lawyer job lawyers paid sick leave eluding a police officer estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Barrington attorney wills and trusts estate tax living trust Deer Park personal injury lawyer pet bites Illinois medical malpractice case traffic crimes Arlington Heights wills and trusts lawyer Illinois traffic accident lawyer Illinois employment law attorney Barrington estate planning attorney jet ski compensatory time landlord tenant law license reinstatement criminal operating agreements employment lawyer boating accidents Schaumburg corporate attorney Arlington Heights personal injury lawyer Arlington Heights wills and trusts lawyers probate lawyer Rolling Meadows medical malpractice lawyers Palatine employment law lawyer Illinois Smoke Detector Act living trust benefits estate plan insurance adjusters Illinois home inspection Illinois driving without license Mt Prospect Attorney car accidents sexual images insurance claim dispute attorney Schaumburg estate planning lawyer Illinois Wage Payment and Collection Act Illinois workplace discrimination attorney Illinois insurance claim attorney Colin H. Gilbert living wills medical marijuana insurance denial appeals rollover accidents real estate llinois Real Estate Lawyers Association Barrington injury attorney Inverness corporate attorney Deer Park workers compensation lawyer Des Plaines medical malpractice attorney Rolling Meadows criminal lawyer Schaumburg personal injury lawyers Class A misdemeanor Illinois motorcycle accident lawyer suspended license Illinois construction accident attorney blended families Buffalo Grove car accident lawyer condo association Des Plaines civil attorney head on collisions pedestrian injuries, pedestrian fatality Illinois small business Illinois corporate lawyer trust payments pedestrian accidents slip and fall accidents rollover car crashes Federal Food Drug and Cosmetic Act Rolling Meadows Attorney Arlington Heights car accident lawyer attorney fees vacation home Rolling Meadows litigation lawyer Illinois employment law attorneys rent to own real estate contracts Illinois medical malpractice attorney Crystal Lake traffic attorney underinsured motorist probate claims process sole proprietorship Schaumburg injury lawyer Inverness insurance attorney traffic accidents Illinois tax attorney GM ignition switches Illinois red light cameras Colin Gilbert condo