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


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