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| 1 | AN ACT concerning regulation.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Title Insurance Act is amended by changing | ||||||
| 5 | Section 18.1 as follows: | ||||||
| 6 | (215 ILCS 155/18.1) | ||||||
| 7 | Sec. 18.1. Choice of title insurance company. | ||||||
| 8 | (a) It is declared to be the public policy of this State | ||||||
| 9 | that, except as limited by subsection (b), parties to a | ||||||
| 10 | contract for the sale of residential real property who are | ||||||
| 11 | obligated to provide and pay for products and services | ||||||
| 12 | enumerated in Section 19 title insurance have the right to | ||||||
| 13 | choose the title insurance company, and title insurance agent, | ||||||
| 14 | or independent escrowee that will provide such products and | ||||||
| 15 | services title insurance. No lender or producer of title | ||||||
| 16 | business, as the term is defined in this Act, shall, as a | ||||||
| 17 | condition of making a loan, providing services of any kind, | ||||||
| 18 | including, but not limited to, services as a broker, agent, | ||||||
| 19 | lender, attorney, or otherwise, require a party to a contract | ||||||
| 20 | for the sale of residential real property who is obligated by | ||||||
| 21 | that contract to furnish and pay for products and services | ||||||
| 22 | enumerated in Section 19 title insurance at their expense, to | ||||||
| 23 | procure such products and services title insurance from a title | ||||||
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| 1 | insurance company, or title insurance agent, or independent
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| 2 | escrowee other than a title insurance company, or title | ||||||
| 3 | insurance agent, or independent escrowee that is chosen by the | ||||||
| 4 | party paying for the products and services enumerated in | ||||||
| 5 | Section 19 title insurance.
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| 6 | (b) This subsection (b) applies exclusively to counties in | ||||||
| 7 | Illinois having populations not less than
500,000. In a | ||||||
| 8 | transaction for the sale and purchase of residential real | ||||||
| 9 | property, as defined in this Act, the
title insurance company | ||||||
| 10 | issuing the owner's title insurance policy shall issue the | ||||||
| 11 | lender's title insurance
policy for that transaction if such a | ||||||
| 12 | policy is required by the lender, unless: | ||||||
| 13 | (1) the buyer and seller agree otherwise; or | ||||||
| 14 | (2) the buyer or seller is offered a discount of fees | ||||||
| 15 | as an inducement to split the title
insurance policies, | ||||||
| 16 | unless, prior to the closing of the transaction, the title | ||||||
| 17 | insurance company chosen to
issue the owner's policy agrees | ||||||
| 18 | to offer the same discount of fees. | ||||||
| 19 | As used in this Section, "fees"
includes those fees for | ||||||
| 20 | products and services enumerated in Section 19. | ||||||
| 21 | (Source: P.A. 95-570, eff. 8-31-07.) | ||||||