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Welcome to the Illinois Real Estate Lawyers Association.

The Illinois Real Estate Lawyers Association is comprised of experienced attorneys dedicated to assisting individuals and businesses in connection with real estate transactions of all types.


Next Event

No general membership meeting held during April.

Watch this space for information regarding the May 11, 2016 meeting.

IRELA President Ralph Schumann will also provide updates on important developments and issues of the day affecting real estate practitioners, including a report on the April 5, 2016 Inter-Industry TRID Panel Discussion CLE which IRELA sponsored with the IDPFR's TRID Working Group, ethical issues facing real estate practitioners, LLLTs, Practice Issues relating to TRID implementation, Cyber-Security, and Best Practices requirements.

Recent Events

 

April 5, 2016:   IDFPR - IRELA -- TRID Inter-Industry Panel Discussion

 

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                      TRID INFORMATIONAL PANEL

             

                    With Industry Leaders on TRID

 

The IDFPR and several industry partners, including IRELA,

sponsored a TRID Panel Discussion April 5th featuring

selected Real Estate Industry representatives.


               

 IDFPR TRID Panel on stage 20160405_for web.jpg

IRELA President Ralph Schumann (above, far left) participated as an Attorney on the Panel. Also participating were Christine Sparks of ATGF, current President of the Illinois Land Title Association (above, fourth from far right), and Joseph Nery, IRELA Board Member and NAHREP National President (above, far right). They and other participants, including representatives from the mortgage lending, real estate brokerage and related industries, discussed their experiences with TRID. Moderator: Linda Grahovec (above, standing).


This was a unique opportunity to hear from industry professionals regarding continuing developments with TRID implementation, problems encountered, and possible resolutions. Attendees were able to ask questions and share their own TRID stories.

 

IDFPR TRID Panel Speakers_20160405_for web.jpg

 

To access the Dropbox Folder containing handouts referenced during the CLE, including the PowerPoint used during the session, Speaker Bios, information regarding ALTA Best Practices, Letters to the CFPB, and updates regarding the Multi-Board Residential Real Estate Contract 6.1, click on:

  2016 IDFPR - TRID Inter-Industry Seminar and Panel.

 

Participating Partners:

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This was an important opportunity to hear from industry representatives regarding what challenges are being faced with TRID implementation, and learn about proposed solutions. Planning for future events continues.

 


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Other News:

IRELA's President Ralph J. Schumann
recently authored an article published in the American Bar Association's GPSolo magazine entitled: "How Real Estate Lawyers Can Use Technology to Guard Against Security and Compliance Threats".  To access and download a copy of the article, click on:

 

ABA - Schumann Article on Technology and Real Estate Lawyers

 

ABA GPSolo Technology Article as published 2016.jpg

 

wer: Prior to the consummation or closing, the Closing Disclosure should be updated with the best information reasonably available to the lender. If any issues arise from a walkthrough that require a monetary adjustment, the Closing Disclosure should be updated to reflect this adjustment prior to closing. - See more at: http://blog.alta.org/2016/01/trid-qa-how-to-handle-walkthrough-changes.html#sthash.RWHodUBT.dpuf

 

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IRELA's President Ralph J. Schumann was interviewed by the Illinois State Bar Assocation as part of a series of short videos. Schumann was selected to discuss issues of interest to attorneys practicing in the area of Real Estate Law, and commented on changes to Forms affecting Real Estate practitioners with the implementation of TRID (TILA / RESPA Integrated Disclosure) (also known as KBYO - "Know Before You Owe"). To view the video, click on the image below.


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TRID Q & A: Handling Walkthrough Changes and Credits

01/07/2016

TRID Q&A: How to Handle Walkthrough Changes

- See more at: http://blog.alta.org/2016/01/trid-qa-how-to-handle-walkthrough-changes.html#sthash.RWHodUBT.dpuf

01/07/2016

TRID Q&A: How to Handle Walkthrough Changes

- See more at: http://blog.alta.org/2016/01/trid-qa-how-to-handle-walkthrough-changes.html#sthash.RWHodUBT.dpuf
uestion: How do we address issues that come up during a walkthrough? For example, if the water heater is leaking and the parties want to escrow $1,000 for it to be repaired. Does the Closing Disclosure have to be revised and does the lender need to redisclose? - See more at: http://blog.alta.org/2016/01/trid-qa-how-to-handle-walkthrough-changes.html#sthash.RWHodUBT.dpuf

A recent ALTA update discusses this issue.

 

QUESTION: Suppose a walkthrough reveals a leaking water heater and the parties want to escrow $1,000 for the repair. Does the lender need to revise the Closing Disclosure and does the lender need to redisclose?

 

ANSWER: Prior to the consummation or closing, the Closing Disclosure needs to be updated with the best information reasonably available to the lender. If any issues arise from a walkthrough that require a credit or an escrow of moneys to cover a repair, the Closing Disclosure should be updated to reflect such monetary adjustment(s).

 

Although developments during a walkthrough may necessitate a revised Closing Disclosure, the changes may not require an additional three-day waiting period between delivery of the revised Closing Disclosure and closing. The CFPB tells us that there are only three circumstances (Sec. 1026-19(f)(2)(ii)) which trigger a new three-day waiting period:

 

1.  When the disclosed annual percentage rate becomes inaccurate;

 

2.  When the loan product is changed; or

 

3.  When a prepayment penalty is added.

 

Work with all the players and participants in the transaction to make sure that the lender is alerted to any such adjustments as soon as possible. While the change may not trigger a new three-day waiting period, different lenders are handling these issues in different ways; the lender may need a few hours to approve the change, determine its impact on the APR, and update the disclosures.

 

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To download the Agenda from the January 13, 2015 meeting, click on:

Agenda January 13th Meeting

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To download the Agenda from the December 9, 2015 meeting, click on:

Agenda December 9th Meeting

 

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Contract Update: Multi-Board Residential Real Estate Contract 6.1

IRELA announces the NEW Multi-Board Residential Real Estate Contract 6.1, which incorporates updates necessary for compliance with TRID (TILA/RESPA Integrated Disclosure) rule.  TRID applies to transactions involving closed-end mortgage financing for which loan applications are submitted October 3, 2015 or later. 

To access and download a "Sample" watermarked version of the new 6.1 contract, click on:

 

Multi-Board 6.1 Contract

To access and download a Comparison Chart for the new 6.1 contract, click on:

 

Multi-Board 6.1 Comparison Chart

The official "fillable" PDF of the new 6.1 Contract, © 2015, Illinois Real Estate Lawyers Association, is available in the "Members Only" section of this web site.


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TRID THREE DAY CLOSING DISCLOSURE CHART

To access and download the chart, click on:IRELA Handout_ALTA graphic- three day disclosure rule.png

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To access and download the PowerPoint Presentation used by Linda Grahovec for her TRID presentation at the September 9th general membership meeting held at the 11th Annual IICLE Real Estate Short Course, click on:

 

Grahovec PowerPoint Presentation

 

To access and download a PDF of the Reference materials and forms used by IRELA Director David R. Schlueter and attorney Tom Anselmo in their presentation on September 9th at the 11th Annual IICLE Real Estate Short Course, click on:

 

Schlueter and Anselmo Reference Materials


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Other Events:

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IRELA President Ralph J. Schumann (L)     and        Frank Pellegrini (R), Past President of the American Land Title Association (ALTA), spoke at the ISBA Real Estate Law Update CLE on Thursday, May 7, 2015 on the new CFPB Forms which have now supplanted the GFE, TIL and HUD-1 forms.  (The initial start date of August 1, 2015 was extended to October 3, 2015.) To access and download the full PowerPoint presentation used at the CLE seminar, click on:

 

Full CFPB Forms Schumann-Pellegrini Powerpoint

The closing process significantly changeed when the Consumer Financial Protection Bureau's final rule for integrated mortgage disclosures went into effect last year. The rule integrates forms required under the Truth-in-Lending Act (TILA) and Real Estate Settlement and Procedures Act (RESPA). A Loan Estimate replaces the current Good Faith Estimate and early TIL disclosure, while a Closing Disclosure replaces the HUD-1 and final TIL disclosure. The CFPB's original proposed implementation date of August 1, 2015 was extended to October 3, 2015.

A sample timeline provided by CFPB can be accessed at:

CFPB TILA RESPA Integrated Disclosure Timeline Example

To access a recent handout used in connection with a title company presentation on the implementation of the new CFPB Forms, click on:

Handout including IRELA Comment to CFPB, Wells Fargo March, 2015 Notice regarding handling of Closing Disclosure, Best Practices and other issues, and CFPB Loan Estimate and Closing Disclosure Forms

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Other News

Peter J. Birnbaum, President and CEO of Attorneys' Title Guaranty Fund, Inc., recently issued a Bulletin to ATG members concerning Real Estate Broker-Controlled Title Agencies and the accompanying threats to the integrity of the real estate transaction and to the consumer. The Bulletin discusses, among other things, the proliferation of Listing Agreements containing title orders, and the role and responsibilities of Illinois real estate practitioners when presented with such situations.

 

IRELA has for years been concerned about this situation and the threats it presents to practitioners and the consuming public alike.  IRELA's position has always been that the decision regarding ordering title constitutes the practice of law, as it requires evaluation of a number of factors in assessing which title insurance agency is best positioned to do the work required for the client while avoiding situations which might jeopardize a client's best interests. IRELA will continue the important work of protecting the real estate practitioner and protecting the consumer in this area.

We welcome your comments in this area.  Feel free to contact IRELA President Ralph J. Schumann at rjs@SchumannLaw.com.


To access and download Peter Birnbaum's Bulletin, provided here with permission, click on:

Birnbaum Commentary on Real Estate Broker-Controlled Business

IRELA COMMENT:  Birnbaum's Commentary provides important food for thought. Some listing agreements contain provisions that go beyond the usual terms regarding the listing of the property by the broker and broker compensation. Some contain orders for title services of which the seller may or may not be aware. IRELA members, and Illinois real estate practitioners in general, may wish regularly to offer to review any listing agreement before execution by a client. If a listing agreement that was signed without benefit of counsel contains a problematic boilerplate provision, such a provision may be voidable as a matter of law if the provision is shown to be unconscionable or contrary to public policy due to the unequal bargaining positions of the parties or on other grounds.  In addition, if the listing agreement between the seller and the Broker contains a boilerplate order for title services with a separate title agency not a party to the listing agreement, the putative "contract" may be unenforceable due to lack of privity of contract.

 

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IRELA's President Ralph J. Schumann and IRELA Past President Joseph R. Fortunato, Jr., recently participated in a CLE seminar for Greater Illinois Title on the new CFPB Forms and related Implementation Issues along with a panel of nationally recognized speakers.


To access and download copies of the brief Powerpoint, a handout for the presentation, or ALTA's Three-Day Closing Disclosure Rule Chart, click on:

1.  Schumann and Fortunato Brief Powerpoint

2.  Handout including IRELA Comment to CFPB, Wells Fargo September, 2014 Notice regarding handling of Closing Disclosure, and Commentary by David Huffman of ATGF

3.  ALTA Three-Day Closing Disclosure Rule Chart

 

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Help us in "going green".


Download the Handouts for IRELA CLE Seminars in advance and print them or bring them to the seminar on your laptop, tablet or other device.

 

Attendance at most IRELA CLE Seminars is Free for IRELA Member Attorneys in good standing.

(MCLE Credit provided.)

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More News

On March 5, 2015, The Objections, a band sponsored by IRELA, won the "Best Band" Award at the Illinois Bar Foundation's "Lawyers Rock" fundraising event held at the Double Door on Milwaukee in Chicago. 

Pictured below (L to R) are Sean O'Brien, son of ATGF Vice President and Special Counsel to the CEO John O'Brien (Chairman and Founder of IRELA), IRELA President Ralph Schumann, Don Dopka, Tony DiMichele, Kristi Alsip, and Ken Naylor.

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Governor Quinn Issues Amendatory Veto to Condo Bill SB 2664

Gov. Quinn last year issued an Amendatory Veto of SB2664, the condo bill which was supported by a wide array of stakeholders as the best way to reintroduce a certain amount of predictability into the process of purchasing condominiums which were the subject of a foreclosure or similar action. For more information, see news update on this web site under "Developments".

This development was discussed in detail at the IICLE 10th Annual Real Estate Short Course on September 9-10, 2014 at Harper College.  (IRELA was a sponsor of this comprehensive CLE Seminar, and will also sponsor the upcoming 11th Annual Real Estate Short Course at the Schaumburg Hyatt Regency on September 8-9, 2015. More details will follow.)

 

NOTE:  EZ Dec System in Cook County was replaced recently by the MyDec system.  To access a June, 2014, Illinois Department of Revenue update on implementation of the new MyDec system,

Click on the following link to download:

 

IDOR Informational Bulletin on new MyDec system

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IRELA contributes $2,500 to Lawyers Feeding Illinois. 

Pictured below are IRELA President Ralph Schumann and ATG Vice President and Special Counsel to the CEO John O'Brien (who is also the Founder of IRELA).  Ralph Schumann recently presented a check for IRELA's $2,500 contribution to the Lawyers Feeding Illinois program.  For more information, call (847) 593-5750 or (847) 273-8700.

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Learn more  »

IRELA continues to co-sponsor CLE programs with IICLE, ISBA, ATG, and other title insurance companies and organizations.  Check back for more details on upcoming events.

 

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Announcements

Official Multi-Board

Residential Real Estate

Contract 6.1

The NEW Multi-Board Residential Real Estate Contract 6.1, © 2015, Illinois Real Estate Lawyers Association ("IRELA") is now available in the "Members Only" Section of this web site for downloading and use. It has been updated to address changes required by TRID (TILA/RESPA Integrated Disclosure) rule. It is a "fill-in-the-blanks" PDF document. You can tab from field to field and enter your data, and then print out the final document. It is a fourteen page document, including a cover page which details important information regarding digital signatures, the copyright, and the limited license granted to approved entities to use the form.To accesss and download a "Sample" watermarked version of the 6.1 contract, click on:

SAMPLE Multi-Board Residential Real Estate Contract 6.1
This PDF bears a "SAMPLE" watermark.  While it has the official text of the 6.1 contract, it is not a fillable PDF.

Key Highlights Comparison Chart
Summarizes the key changes in the Multi-Board Residential Real Estate Contract 6.1 prepared by IRELA President Ralph J. Schumann. Corresponding provisions in the prior 6.0 Version of the Contract are compared side by side to new provisions. This document is in PDF format.

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IRELA President Ralph Schumann Presented at ATG's April 9, 2016 "Navigating a Real Estate Transaction":

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Schumann spoke at the CLE, held at Chicago-Kent College of Law, on the Multi-Board Residential Real Estate Contract 6.1 and other pre-printed contracts.

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IRELA President Quoted in ISBA Bar Journal Article:

IRELA President Ralph Schumann was quoted in a recent ISBA Bar Journal article by Tim Slating entitled "Are You Ready for the New Residential Real Estate 'Consummation' Rules?" The article provides a timely update on TRID Implementation and Best Practices.

To access and download the article, click on:

"Are You Ready for the New Residential Real Estate 'Consummation' Rules?"

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TRID Updates:

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Richard Cordray wrote during this past summer to two U.S. Senators to assure them that the CFPB's oversight of the implmentation of TRID (TILA-RESPA Integrated Disclosure) will be "senstive" to the progress made by those entities that have squarely focused on good-faith efforts to come into compliance with the Rule on time. As of the time of that writing, the new Rule was set to go into effect for closed-end mortgage transactions in connection with loan applications submitted after August 1, 2015. To download and read the letter, click on:

June 3, 2015 Letter from Richard Cordray of CFPB to Senators Donnelly and Scott:

The Cordray letter included a blog post regarding the only "three things" that could cause a new three-day disclosure to be issued. To access and read the blog post, click on:

CFPB Blog Post June 3, 2015

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IRELA Comment on Best Practices and TRID:

The TRID October 3, 2015 start date is now behind us.  It behooves every real estate practitioner to become "Best Practices" compliant and TRID compliant now, and to get all figures and necessary data to the title insurance company involved in a real estate transaction with a closed-end mortgage at least ten (10) business days in advance of the consummation date to facilitate the lender's delivery of the Closing Disclosure three business days prior to consummation. It may be necessary to do two walkthroughs with transactions now -- the first one ten or eleven days in advance of the consummation, and a second walkthrough closer to consummation.

"Hold Harmless" Period?

We previously posted an update regarding the fact that, in the wake of CFPB Director Richard Cordray's June 3, 2015 letter to Senators Donnelly and Scott, multiple media outlets over-reacted a bit, announcing that the CFPB had agreed to a delay in enforcement of the TRID Rule then set to go into effect August 1st, and/or claiming that the CFPB, in response to numerous requests from Congress and from industry stakeholders, had agreed to a hold harmless period, and that some had stated there would be a delay in enforcement.

NOTE: Although the start date was extended to Saturday, October 3rd, there has so far been no official CFPB statement regarding any period of "relaxed enforcement" or "hold harmless" period following the implementation date. Legislation is pending.

Watch this space for more information.  Contact IRELA with any questions.

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IRELA President Ralph Schumann was interviewed recently by Cook County Recorder of Deeds Karen Yarbrough on her "Housing Matters" program.  The program is available at Vimeo. To view the program, click on the image below.

 

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IRELA President Ralph Schumann spoke recently at a CLE Seminar on the Multi-Board Residential Real Estate Contract: An Analysis of Key Changes, for Attorneys' Title Guaranty Fund, Inc., with Robert Borla. The presentation is available as an OnDemand program at www.atgf.com.

ATG Members can click on http://www.atgf.com/legal-ed/programs/multi-board-residential-real-estate-contract-60-analysis-key-changes

Special Access for IRELA Members:
Login on the ATG website, www.atgf.com, is required to register to view this OnDemand program. If you haven't taken an ATG seminar before or viewed an ATG OnDemand program before, follow these instructions. Don't remember your login? Request a new password to get access.

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IRELA President Ralph Schumann spoke recently at a Greater Illinois Title Company CLE Seminar on the New Multi-Board Residential Real Estate Contract at Maggiano's Little Italy in Oak Brook, Illinois.

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IRELA President Ralph Schumann was interviewed recently for a story that aired on National Public Radio's  WBEZ logo.jpg on Property Flipping: "Flipping Houses in a Post-Bubble World".  

Schumann was quoted in an accompanying article, which can be accessed here as a PDF document:  "Flipping Houses in a Post-Bubble World."

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IRELA President Ralph Schumann recently participated in the recording of a television program for ISBA's "Illinois Law" series on Landlord-Tenant issues.   Pictured above (L to R) are former IRELA Board Member Samuel Levine, Joel Chupack (IRELA Board Member and Past Chair of the ISBA Real Estate Law Section Council), Ralph Schumann, and program moderator Marty Dolan.


Regular IRELA meetings take place at 8:00 a.m. monthly on the second Wednesday at Belvedere Events and Banquets facility in Elk Grove Village, IL (847.534.0600) or at other announced locations.