(a) The seller of residential real estate by installment sales contract shall provide the buyer with a written contract that complies with the requirements set forth in this Section.
     (b) Until both parties have a copy of the executed contract signed by the buyer and the seller with the signatures notarized, either party has the right to rescind the contract, in addition to all other remedies provided by this Act. Upon rescission, pursuant to this Section, the seller shall refund to the buyer all money paid to the seller as of the date of rescission.
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Terms Used In Illinois Compiled Statutes 765 ILCS 67/10

  • Amortization: Paying off a loan by regular installments.
  • Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
  • Appraisal: A determination of property value.
  • Contract: A legal written agreement that becomes binding when signed.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14

     (c) An installment sales contract for the sale of any residential real estate subject to the contract shall clearly and conspicuously disclose the following:
         (1) The address, permanent index number, and legal
    
description of the residential real estate subject to the contract.
        (2) The price of the residential real estate subject
    
to the contract.
        (3) The amount, if any, of any down payment applied
    
to the price of the residential real estate subject to the contract and the resulting principal on the loan.
        (4) The amount of the periodic payment, any grace
    
periods for late payments, late payment fees, and to whom, where, and how the buyer should deliver each payment.
        (5) The interest rate being charged, if any,
    
expressed only as an annual percentage rate.
        (6) The term of the loan expressed in years and
    
months and the total number of periodic payments due.
        (7) The amount, if any, of any balloon payments and
    
when each balloon payment is due.
        (8) A statement outlining whether the seller or the
    
buyer is responsible for paying real estate taxes and insurance and how responsibilities of the buyer and seller change based on the time period the residential real estate subject to the contract is occupied by the buyer and what percentage of the principal is paid down. In all circumstances not defined in the disclosure required by this subsection, the seller has the responsibility for paying real estate taxes and insurance.
        (9) The amount that will be charged periodically, if
    
any, for the first year to pay real estate taxes.
        (10) The amount that will be charged periodically, if
    
any, for the first year to pay insurance.
        (11) A statement that the amounts listed in items (9)
    
and (10) of this subsection are subject to change each year.
        (12) The fair cash value as defined in the Property
    
Tax Code and set forth on the real estate tax bill for the year immediately prior to the sale, and the assessed value of the property as set forth on the real estate tax bill for the year immediately prior to the sale.
        (13) The amount of real estate taxes for the year
    
immediately prior to the sale.
        (14) Any unpaid amounts owing on prior real estate
    
taxes.
        (15) The amount of the annual insurance payment for
    
the year immediately prior to the sale.
        (16) The type of insurance coverage, including, but
    
not limited to, property insurance and title insurance, for the buyer and seller that will be required or provided.
        (17) The seller’s interest in the structure being
    
sold.
        (18) Any known liens or mortgages or other title
    
limitations existing on the property.
        (19) An explanation as to when the buyer will obtain
    
the title.
        (20) A statement defining what repairs the buyer is
    
financially responsible for making to the residential real estate subject to the contract, if any, and how responsibilities of the buyer and seller to repair the property change based on the time period the residential real estate subject to the contract is occupied by the buyer and what percentage of the principal is paid down by any repairs made by the buyer. In all circumstances not defined in the disclosure required by this subsection, the seller has the financial responsibility for all repairs required to be made pursuant to the installment sales contract.
        (21) A statement defining what, if any, alterations
    
of the property must be approved by both the buyer and the seller prior to the alterations being made, including requirements to provide evidence of proper permits, insurance, and lien waiver agreements.
        (22) Any additional charges or fees due at the time
    
of the date of sale or at a later date.
        (23) An amortization schedule, as defined in Section
    
5.
        (24) A certificate of compliance with applicable
    
dwelling codes, or in the absence of such a certificate: (i) an express written warranty that no notice from any municipality or other governmental authority of a dwelling code violation that existed with respect to the residential real estate subject to the contract before the installment sales contract was executed had been received by the seller, his or her principal, or his or her agent within 10 years of the date of execution of the installment sales contract; or (ii) if any notice of a violation had been received, a list of all such notices with a detailed statement of all violations referred to in the notice.
        (25) A statement, in large bold font stating in
    
substantially similar form: “NOTE TO BUYER: BEFORE SIGNING THE CONTRACT THE BUYER HAS THE OPTION OF OBTAINING AN INDEPENDENT THIRD PARTY INSPECTION AND/OR APPRAISAL SO THAT THE BUYER CAN DETERMINE THE CONDITION AND ESTIMATED MARKET VALUE OF THE RESIDENTIAL REAL ESTATE AND DECIDE WHETHER TO SIGN THE CONTRACT.”.
        (26) If the residential real estate or any dwelling
    
structure thereon that is subject to the contract has been condemned by the unit of government having jurisdiction, the contract shall include a statement, in large bold font stating in substantially similar form: “NOTE TO BUYER: THE RESIDENTIAL REAL ESTATE BEING SOLD THROUGH THIS CONTRACT HAS BEEN CONDEMNED BY THE UNIT OF GOVERNMENT HAVING JURISDICTION.”.
        (27) A statement that the seller provided the buyer
    
the installment sales contract disclosure prepared by the Office of the Attorney General as required under Illinois State law. The statement shall include the date on which the buyer was provided with the disclosure, which must be at least 3 full business days before the contract was executed.
        (28) A statement that: (i) if the buyer defaults in
    
payment, any action brought against the buyer under the contract shall be initiated only after the expiration of 90 days from the date of the default; and (ii) a buyer in default may, prior to the expiration of the 90-day period, make all payments, fees and charges currently due under the contract to cure the default.
    (d) The requirements of this Section cannot be waived by the buyer or seller.
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