the Illinois State Bar Association. ISBA's Third Vice President
moves up the organizational ladder to become president in three
years. Long active in the ISBA, O'Brien has been a member of the
ISBA Board of Governors since 2002, and an Assembly member since
1997. He is an appointed member of the Illinois Supreme
Court's Minimum Continuing Legal Education Board, and a member
of the ISBA's Special Committee on Strategic Planning and its
Task Force on the Unauthorized Practice of Law. He is also
a member of the Illinois Bar Foundation, the ISBA's fundraising
arm. Since its establishment in 1997, the Illinois Real
Estate Lawyers Association has grown to over 1,800 members.
2006, in the "Real Estate Hotline" phone bank. Participating
volunteer professionals included (standing, from left) IRELA
Director Ralph J. Schumann, ATG Senior V.P. Hank Shulruff, IRELA
President Aurora Abella-Austriaco,
and ISBA Chairman (and recently-elected ISBA Third Vice
President) John G. O'Brien, and (seated) realtor David Kaplan,
and IRELA Director Naomi Schuster. Sponsored by ATG,
Capital Funding Corporation (CFC) and IRELA, the event attracted
callers from throughout Illinois who received answers to their
questions about buying and selling a home. Also
participating were loan origination officer Madeline Fanelli of
CFC in Lombard, and attorney Tania Stori of ATG in Champaign.
The event was designed to help educate
members of the public regarding credit score issues, mortgage
loan qualification requirements and options, legal assistance
options and other aspects of the home-buying process. For
information about the event and similar events in the future, call
(800) 252-0402 (or, from the Chicago area, (312) 372-8361). 
To view the comments of John O'Brien
(left) and of
Henry L. Shulruff (right), senior vice president of Attorneys' Title
Guaranty Fund, Inc., click on
for Chicago Title, said "This is just one way Chicago Title
shows its support of IRELA and everything it stands for in
preserving the role of attorneys within real estate
transactions." IRELA is grateful for Chicago Title's
generous assistance.
ys'
Title Guaranty Fund, Inc. (ATG), presents a check for $10,000
to IRELA. Accepting the donation are IRELA President
Aurora Abella-Austriaco (center), and John G. O’Brien, Chairman
and founder of IRELA. The donation was in recognition of
the organization's continuing efforts to protect and educate the
public about the complexities of the residential real estate
transaction, as well as the importance of the role of the real
estate practitioner. 
Abella-Austriaco
were recently interviewed as part of a panel for a Chicago "Real
Estate Roundtable" cable program entitled "Buying and Selling a
Home". Also on the panel were Peter J. Birnbaum, President of
Attorneys' Title Guaranty Fund, and Hank Shulruff, President of
Capital Funding Corporation. (Photo as appeared in the Daily
Herald.)
with
her parents, Patrocino and Fernando Abella. To access an article in the Daily Herald by Deborah Donovan discussing Abella-Austriaco's efforts to help her parents and other
minorities acquire real estate, click on
Charles Country Club was a resounding success.
John
G. O'Brien, 
Joseph R. Fortunato, Jr.,
Immediate Past President of IRELA, is pictured at left at a recent IRELA
meeting in Chicago with ISBA First Vice President Irene F. Bahr. Joe Fortunato is
to the right of Irene Bahr, and to the right of Mr. Fortunato
is IRELA Chairman of the Board, John O`Brien.
Fortunato, has long been active in the DuPage
County Bar Association, the Illinois State Bar Association Real
Estate Section, and in IRELA. John O'Brien has recently
been elected Third Vice President of the ISBA. 
ohn O`Brien,
Chairman of the Board of IRELA, has been elected Third Vice
President of the ISBA.
O'Brien also
serves on the Board of Governors, and as Vice-Chair of the ISBA Task Force on the
Unauthorized Practice of Law. O`Brien, who served
five consecutive terms as president of the Illinois Real Estate
Lawyers Association, saw IRELA grow under his leadership from
a group of a few dozen lawyers in 1997 to an organization of
over 1,700 members which has gained a reputation nationally
for its efforts in combating the unauthorized practice of law.
John has championed the cause of the real estate lawyer and the
consumer for the past ten years, and has been called "the
Illinois real estate lawyer's finest advocate". IRS Issues Home Sale Exclusion Rules
IRS regulations issued recently shed light on questions relating to the 1997 law that substituted a capital gains exclusion of up to $250,000 ($500,000 for a married couple filing jointly) for the old "replacement residence" rules. The regulations answer questions such as how to determine if a home is a principal residence, how to allocate gain between residential and business uses of a property, and under what "unforeseen circumstances" an exception to the usual two-year ownership requirement will be available (e.g., a move triggered by a "divorce or a legal separation" may qualify). To access the relatively readable IRS article on this topic, click on: IRS Newsroom Article on Home Sale Exclusion Rules
IRELA PAST PRESIDENT JOE FORTUNATO SOUNDS OFF!
Fortunato Letter to ISBA Bar Journal Editor
IRELA HAS SETTLED ITS LAWSUIT AGAINST KOENIG & STREY!!
READ ALL ABOUT IT!!
The Illinois Real Estate Lawyers Association (IRELA) is pleased to announce that IRELA and the Koenig & Strey Defendants (Koenig & Strey/GMAC Real Estate and Ft. Dearborn Title) have reached a settlement in the litigation captioned: The Illinois Real Estate Lawyers Association, an Illinois not-for-profit corporation v. Koenig & Strey, Inc. and Koenig & Strey Title Company, Inc., formerly pending in the Circuit Court of Cook County, Chancery Division, Case Number 00 CH 10063. The parties reached settlement on the unauthorized practice of law count brought by IRELA and the Counterclaim brought by Defendants. The terms of the settlement are incorporated into a Consent Decree entered by the Honorable Richard J. Billik, and are available on this web site. For a complete copy of the Consent Decree and the accompanying joint press release, click here:
Consent Decree
(38.8 KB; Download time:
0 min. 14 sec. on 56 Kbps modem)The settlement of the lawsuit with Koenig & Strey followed established principles set forth in the Illinois Supreme Court`s ruling regarding unauthorized practice of law in Chicago Bar Association, et al. v. Quinlan and Tyson, Inc., 34 Ill. 2d 116, 214 N.E.2d 771 (1966). Koenig & Strey acknowledges and agrees in the Consent Decree that "the certain February 9, 2000 internal KST electronic mail message entitled `Closing myth number 1,` to the extent that message suggests that anyone other than a licensed attorney may perform legal services, was mistaken," and the terms of the Consent Decree reaffirm the realtor`s obligation to comply with the requirements of Quinlan and Tyson. For a complete copy of the Quinlan and Tyson decision, click here:
Quinlan and Tyson decision
(33.8 KB; Download time:
0 min. 14 sec. on 56 Kbps modem)The Joint Press Release issued by the parties states, in pertinent part:
As a result of this litigation, OBrien was referred to in the popular press as the "Turf Warrior," but, according to the associations corporate attorney, Stuart Wolf of Arlington Heights, "It is not a description he necessarily deserves." According to Wolf, "It is not turf that is at stake. Lawyers are not at risk. Clients are at risk if they proceed to closings without independent lawyers actively representing their interests as sellers, buyers and borrowers." (Koenig & Strey GMAC Real Estate President Christopher J.) Eigel does not disagree. "Often times lawyers are the best insurance we have at closings," he said.
On June 11, 2001
ILLINOIS REAL ESTATE LAWYERS ASSOCIATION, KOENIG & STREY REACH SETTLEMENT ENDING A LAWSUIT OVER ISSUE OF UNAUTHORIZED PRACTICE OF LAW
In an agreement that both parties claim is a victory for Illinois consumers, a settlement has been reached between the Illinois Real Estate Lawyers Association (IRELA), Koenig & Strey Real Company, Inc., and Koenig & Strey Title Company (d/b/a Ft. Dearborn Title Company), ending a lawsuit that has been pending since July 2000.
Under the terms of the consent decree signed by Cook County Circuit Judge Richard J. Billik, Koenig & Strey agreed to reaffirm its policies and practices regarding the use of independent attorneys in the purchase and sale of real estate by their clients. In all transactions, Koenig & Strey agreed to recommend to its clients - both buyers and sellers - that they retain an independent attorney to represent them, according to Christopher Eigel, Koenig & Strey president.
The plaintiff, IRELA - a three-year-old association with more than 1,100 members statewide - acknowledged in the consent decree that some of the association`s members made statements that Koenig & Strey claims have damaged their business reputation. John O`Brien, an attorney in private practice in Arlington Heights who is IRELA president, said that IRELA has agreed to encourage its officers and members to work cooperatively with Koenig & Strey in servicing their mutual clients.
"The consent decree represents a victory for Illinois consumers who should not be misled to believe that independent legal counsel is unnecessary in what, for most, is the biggest investment they will make in a lifetime," stated O`Brien.
The lawsuit was filed July 10, 2000, following the publication of "Closing Myth #1," an internal e-mail from Koenig & Strey Title Company, informing Koenig & Strey employees that lawyers were not needed to close a real estate transaction in Illinois. In its lawsuit, IRELA requested that the defendant "cease and desist" from encouraging such action which it said constituted the unauthorized practice of law.
Eigel has since said that Koenig & Strey had no intention of replacing lawyers at the closing table. "We welcome lawyers because their presence is almost always an indication that legal problems will be resolved at or before closing," he said.
The terms of the consent decree are available from both parties` web sites (IRELA web site: www.reallaw.org and Koenig & Strey web site: www.ksgmac.com).
Koenig & Strey was represented by J. Andrew Langan, of Kirkland & Ellis, and IRELA was represented by William J. Anaya, then of Johnson & Bell, Ltd. and Stuart H. Wolf.
We are pleased to announce that our
registered membership is now over 2,000 members! As we all close
deals in the coming weeks, check whether your opposite number is an IRELA member. If not, encourage him or her to join. We are doing
important work on behalf of the profession, and the support of real
estate practitioners is vital. Remember, new members can apply
online (by clicking the "Members" button above and then selecting
the "JOIN IRELA" button on the pop-up menu in left margin). If you
would like a supply of brochures / membership applications, contact
us at
info@irela.org.
