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1 | AN ACT concerning contracts.
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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 1. Short title. This Act may be cited as the New | |||||||||||||||||||
5 | Residential Building and Sales Contract Act. | |||||||||||||||||||
6 | Section 5. Compliance. Any contract for the construction | |||||||||||||||||||
7 | and sale or contract for the sale of a new residential living | |||||||||||||||||||
8 | unit is required to comply with the terms and provisions of | |||||||||||||||||||
9 | this Act. | |||||||||||||||||||
10 | Section 10. Definitions. As used in this Act: | |||||||||||||||||||
11 | "New residential living unit" means a structure intended to | |||||||||||||||||||
12 | be occupied for residential purposes by a single family, | |||||||||||||||||||
13 | including single family homes, duplexes, and townhouses but | |||||||||||||||||||
14 | excluding condominiums or cooperatives, that has not been | |||||||||||||||||||
15 | previously occupied by a person other than an owner, family | |||||||||||||||||||
16 | member, employee, stockholder, officer, or director of the | |||||||||||||||||||
17 | owner for more than one year and that has had a final | |||||||||||||||||||
18 | certificate of occupancy or been ready to be occupied for less | |||||||||||||||||||
19 | then 3 years. | |||||||||||||||||||
20 | "Owner" means the person or entity in title to the real | |||||||||||||||||||
21 | estate on which the new residential living unit is or will be | |||||||||||||||||||
22 | located and any employee, agent, or affiliated person or entity | |||||||||||||||||||
23 | of that person or entity in title to the real estate. | |||||||||||||||||||
24 | Section 15. Contract requirements. Every contract for the | |||||||||||||||||||
25 | construction and sale or contract for the sale of a new | |||||||||||||||||||
26 | residential living unit shall clearly state: | |||||||||||||||||||
27 | (1) the legal description of the parcel being sold; | |||||||||||||||||||
28 | (2) that the purchaser has the unconditional option to | |||||||||||||||||||
29 | rescind the contract until midnight of the seventh day | |||||||||||||||||||
30 | following the signing of the contract; |
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1 | (3) which party is obligated to pay the costs of | ||||||
2 | issuance of the required title policy, recording of all | ||||||
3 | documents, and other similar closing costs; | ||||||
4 | (4) whether the owner has any interest in any other | ||||||
5 | entities or service providers that the purchaser is | ||||||
6 | required to use in connection with the transaction, such as | ||||||
7 | a title insurance agent, mortgage broker or lender, escrow | ||||||
8 | agent, or insurance brokerage company, the nature of that | ||||||
9 | interest, and any compensation, fee, or other remuneration | ||||||
10 | paid to or received by the owner in connection with the | ||||||
11 | transaction; | ||||||
12 | (5) the building codes to be followed or that were | ||||||
13 | followed in the construction of the new residential living | ||||||
14 | unit; | ||||||
15 | (6) that the purchaser is not represented by the owner | ||||||
16 | or his or her employee or agent and that the purchaser | ||||||
17 | should consider seeking representation or advice from a | ||||||
18 | third party unrelated to and unaffiliated with the owner; | ||||||
19 | (7) that the implied warranty of liability applies, or | ||||||
20 | if not, the terms of the warranty concerning the new | ||||||
21 | residential living unit cannot be for a period of less than | ||||||
22 | one year from the date the buyer occupies the new | ||||||
23 | residential living unit and that the warranty must cover | ||||||
24 | all major systems of the new residential living unit and | ||||||
25 | the workmanship of the owner and all contractors and | ||||||
26 | subcontractors who may have participated in the | ||||||
27 | construction of the new residential living unit; | ||||||
28 | (8) that the purchaser can place 5% of the purchase | ||||||
29 | price in escrow to be held by the agreed upon escrowee | ||||||
30 | until the owner has closed on the sale of the new | ||||||
31 | residential living unit to purchaser and is ready to turn | ||||||
32 | over occupancy of the new residential living unit to the | ||||||
33 | purchaser; and | ||||||
34 | (9) all special service areas in which the new | ||||||
35 | residential living unit is located, the purpose of the | ||||||
36 | special service area, and the estimated annual cost to the |
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1 | buyer. | ||||||
2 | Section 20. Damages. Any contract for the construction and | ||||||
3 | sale or contract for sale of a new residential living unit | ||||||
4 | entered into after the effective date of this Act that does not | ||||||
5 | comply with the provisions of this Act may be rescinded by the | ||||||
6 | purchaser until closing on the new residential living unit, or, | ||||||
7 | if a lawsuit is filed by purchaser after closing but prior to | ||||||
8 | occupancy, the purchaser shall be entitled to recover the | ||||||
9 | greater of the purchaser's actual damages or $5,000, plus | ||||||
10 | reasonable costs and attorney's fees from owner.
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