Implementation of the Appraisal Management Company Registration Act.

Illinois Department of Financial and Professional Regulation

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. Appraisal services are real estate valuation services provided by an individual that can include appraisal, appraisal review, or appraisal consulting. 68 Ill. Adm. Code 1452.10; see also 225 ILCS 459/10. Appraisal Management Companies need to be registered with the Department; initial registration requirements include the filing of an application with the Department's Division of Professional Regulation ("Division"), along with information such as type of entity - corporate, limited liability company, partnership, or other - and contact information. 68 Ill. Adm. Code 1452.20(a).

Fraudulent real estate transactions -- Recent Legislative Proposal.

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 by a preponderance of the evidence 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.