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


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