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


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