Implementation of the Appraisal Management Company
Illinois Department of Financial and Professional
Newly enacted Section 1452 of Title 68 of the Illinois
Administrative Code, promulgated by the Department of Financial and
Professional Regulation (the "Department") (effective March 4,
2013), is directed towards appraisal services and specifies rules
implementing provisions of the Appraisal Management Company
Registration Act, 225 ILCS 459. 68 Ill. Adm. Code 1452. These rules
are comprised of definitions, application requirements, and
registration, renewal, and reinstatement procedures.
Fraudulent real estate transactions -- Recent Legislative
House Bill 2832 (Lang, D-Chicago) allows a
recorder of deeds in a county with population of more than three
million to establish and use a "Fraud Referral and Review Process"
for deeds and instruments that the recorder reasonably believes are
fraudulent, unlawfully altered, or intended to unlawfully cloud or
transfer the title of any real property. It creates a list of 19
criteria for the recorder to consider in determining whether the
document is fraudulent. If the recorder reasonably believes the
document may be fraudulent after this review, the recorder must
refer the instrument to an administrative law judge for review. The
recorder must place a Notice of Referral in the Property Index
identifying this document, document number, and the date of the
referral. The recorder must also notify the last owner of record.
The ALJ must schedule a hearing within 10 business days from
receipt of the referral. If the ALJ believes that the document is
fraudulent, the ALJ must issue a judgment to that effect. The
recorder must record that judgment with the notation stating that
the fraudulent document may not affect the chain of title of the
property in any way. Passed the House
and in the Senate. (Assigned to the Judiciary Committee April 24,
2013.) NOTE: IRELA is very
concerned that this proposed legislation, although most certainly
well-intentioned, may result in some very damaging consequences for
the recording process in Cook County and may impede the closing of
many real estate transactions.
Watch this space for more information.