Category: Real Estate Law

How to know whether you own your condo parking space.

Condominium parking ownership typically falls within one of the following types: deeded space, limited common element or assigned parking. Each form presents different rights to the unit owner or members of the Homeowner’s Association (HOA), and particularly with regards to transferability. 

Deeded Space:

A deeded space has its own unique Property Identification Number (PIN), with its own legal description and with a certain percentage of the Condominium Association ownership. The deed can typically be transferred freely, subject to certain condominium rules, and does not necessarily have to be tied to a specific condo unit.  Therefore, a condominium owner with a deeded space may decide to sell the space.  A deeded space affords the owner the greatest rights for any type of condo parking.

Limited Common Element:

Limited common element parking is similar to a deeded space in terms of ownership, but unlike a deeded space, it is tied to a specific unit and therefore can only be transferred with that unit. Limited common element parking will be either designated to specific units in the original condominium declaration and/or in the listed in the deed of the specific unit.  Although transferability is limited, you may be able to lease out the space to other HOA members or third-parties, depending on the rules and regulations.     

Assigned Space:           

Assigned spaces are not owned by any specific unit owner, rather they are owned by the HOA.  In essence they are similar to any other amenity owned by the HOA.  They are typically assigned based on the bylaws and rules and regulations. The assignment of the space(s) may come with an additional fee and restrictions on subleasing the space. They are not transferable units of ownership, because they do not belong to any specific unit owner. Therefore, an assigned parking affords owners the least amount of rights.

If you are unsure as to the type of parking you own in your building the first place you should look is the Declaration and Bylaws.  When purchasing a condo unit with parking, the contract should specify the type of parking included in the transaction. If you still don’t know you can contact a lawyer to assist.

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This blog and any materials available at this web site are for informational purposes and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between the Law Office Of Christian Blume, LLC or Christian Blume and the user or browser.

Ending a ‘month-to-month’ apartment lease in Chicago

Not all rental tenancies need be in writing, and many are not. This article will briefly discuss how to properly terminate a month-to-month (M2M) tenancy, one of the more common residential tenancies, when a formal written lease is absent or has since expired by its original terms.  In many cases if a written lease is not renewed or extended, and the tenant remains and continues to pay rent on a monthly basis, with the landlord’s permission, a periodic M2M tenancy results, even without any express agreement.

Termination of a M2M tenancy is covered by in the Forcible Entry and Detainer (FED) Act.  Notice of termination of a M2M tenancy must be given 30 days prior to the effective termination date.  Additionally, the termination date must be at the end of a rental period, which is typically the end of the month. (735 ILCS 5/9-207(b))  For example, if a landlord/tenant wants to terminate the M2M tenancy on November 30, when rent is due the first of every month, notice must be given prior to November 1.  If notice is given on November 1, the termination notice won’t be effective until December 31. 

Additionally, since there are less than 30 days in February, to terminate a M2M tenancy on February 28, or February 29 (in leap years), you need to provide the notice no later than 30-days prior to that date, which would be by January 29, or January 30 (in leap years). 

When computing time for notice purposes, is it important to reference the Statute on Statutes.  Specifically, 5 ILCS 70/1.11 provides that when computing time, the first day is excluded and the last day is included, unless the last day is a Saturday, Sunday or a State Holiday, in which case it shall also be excluded.  Therefore, if 30 days after the date of notice falls on a Saturday then you must provide for an extra 2 days of notice.  It is generally a good idea to error on the side of providing a few extra days of notice, and may also help the Landlord/Tenant receiving the notice, to either find a new tenant or relocate.    

Chicago RLTO:

If the property is subject to the Chicago Residential Landlord and Tenant Ordinance (Chicago RLTO), there are separate notice requirements for landlords providing a termination notice.  The Chicago RLTO requires notice of 30 days prior to the stated termination date, which applies to month-to-month tenancies and existing rental agreements.  A failure to provide the 30 day notice, prior to the termination date, permits the tenant to remain in the unit for up to 60 days after the date of notice, regardless of any existing termination date in any rental agreement.  So even if there is an express termination date in a written lease, without proper notice the tenant is permitted to stay beyond that date under the Chicago RLTO.  This would likely cause problems if the landlord has already entered into a future lease or plans for the unit.   

Service of Notice. 

Section 9-211 of the FED Act permits demand or notice to be served by delivering a written (included printed or partially printed) copy thereof to the tenant, or by leaving with some person of the age of 13 years or upwards, residing on or in possession of the premises; or by sending a copy of the notice to the tenant by certified or registered mail, with a return receipt from the addressee.  It is important to note that this is different than the requirement to serve notice for demand pursuant to section 9-102 of the Act, which does not permit sending notice via certified or registered mail.  It may be helpful to speak with an Attorney regarding the proper methods and contents of the notice.   

Effect of giving proper notice. 

Tenant still owes the applicable monthly rent for any period in which tenant remains in the unit. The Chicago RLTO states that the rental rate is based on the rental amount in the month immediately preceding the notice, unless that rent was waived or abated, in which case the rent is based on the rate established on the last date that a full rent payment was made.  After giving proper notice, if the Tenant fails to vacate the property by the termination notice the landlord may file an action for eviction or ejectment.

If you are unsure about your obligations/rights, or would like to speak with an Attorney, please contact Blume Law. 

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This blog and any materials available at this web site are for informational purposes and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between the Law Office Of Christian Blume, LLC or Christian Blume and the user or browser.

Don’t get stumped when determining “stumpage value”

Chicago is a City with magnificent trees. We are surrounded by trees; rising high above houses and streets on parkways, living in yards, parks, forest preserves, public lands, on porches, in containers, even in homes.  Conifers, deciduous trees, ornamentals, fruit trees. Trees provide both private and public benefits: ascetics, shade, energy savings, temperature control, food consumption, play-things (tree houses, swings), decorations, privacy, noise reduction, air filtration, erosion control, habitats for small animals, and sentimental value.  Some have out-survived many buildings, multiple generations, droughts, disease, beetle infestations, and re-development. 

While we may not take notice and fully appreciate the lifespan, size and resilience of some of these larger and older trees, we certainly tend to notice when one has been removed, left only by a large stump or a pile of sawdust/woodchips, where a goliath of a tree stood.  It can leave a void on our landscape.

What happens when one of those trees is removed, damaged or reduced in size, more specifically when it is done without legal right?  What is the remedy?  How do we value what has been destroyed?

The Wrongful Tree Cutting Act (740 ILCS 185), provides damages for unlawfully removing limbs or trees, such as cutting your neighbors tree down or removing branches from their tree.  If you intentionally or knowingly cause to be cut any timber or tree in Illinois, without legal right, you might be liable for monetary damages.  Specifically, three-times (3x) the “stumpage value.”

The act was updated in July 2019 (HB3105) and now more precisely defines stumpage value.  Prior to the amendment, stumpage value was broadly defined as “standing tree.”  Courts were left to determine that value.  The trunk formula method was previously used to determine stumpage value.  See Marsella v. Shaffer, 324 Ill. App. 3d 134, 257 Ill.Dec. 753 (Ill. App. 2001).  The International Society of Arboriculture (ISA) and the Council of Tree and Landscape Appraisers (CTLA) also recognized the trunk formula method as an appropriate method for valuing trees.

Using the trunk formula method an appraiser determines the replacement costs of the largest locally available tree of the same species and then makes adjustments for size, condition and location of the tree. 

The location adjustment is subjective and can take into account: distance from house/structure, historical or cultural significance, shade factors, aesthetic location, erosion control, noise reduction, barrier to noise or sight (privacy), sentimental value, etc.  The condition of the tree is also subjective, and may vary based on the expert making the determination.  An expert appraiser can weigh all these factors in determining the stumpage value.   

Tree size determination is less subjective, and calculated based on the cross sectional area of the tree not the height. A tree’s cross sectional area typically decreases depending on the measurement location, (1 ft. above ground level for trunks less than 12 inches in diameter and 4.5 ft. above ground for trees with diameters greater than 12 inches).

New Stumpage Value in Illinois:

The update to the Act narrows the definition of “stumpage value” for purposes of the Wrongful Tree Cutting Act.  It is “the value of timber as it stands uncut in terms of an amount per unit of volume expressed as dollar value per board foot (board foot = 1 ft. long x 1 ft. wide x 1 in. thick) for that portion of a tree or timber deemed merchantable by Illinois forest products markets.”

This definition applies a more commercial approach to determining stumpage value, even though it is applicable to non-commercial trees.   It appears that the trunk formula method is no longer applicable, as location is no longer relevant when determining “stumpage value” as to the Wrongful Tree Cutting Act.  Although this approach makes the process of computing damages more objective, it may leave tree owners less compensated for their losses and does not take into account the significance of these trees in our daily lives and as structures of our communities.  

This blog and any materials available at this web site are for informational purposes and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between The Law Office Of Christian Blume, LLC and the user or browser.

How to avoid listing your home address when operating a home based business in Illinois

By: Christian Blume – Illinois Business & Real Estate Attorney

Many individuals starting a home-based business may be concerned with listing their home address on public records, for any number of reasons.  A recent amendment to the Illinois Assumed Business Name Act, HB2528 carves out an exception for certain businesses to avoid listing their personal residence when personal safety is an issue.

The Assumed Business Name Act (805 ILCS 405) requires any person or persons transacting business under an assumed name (other than their real names) to file a certificate setting for the assumed business name in the county clerk of the county in which business is transacted.  The types of businesses that are required to register assumed business names include, sole proprietorships, general partnerships, and professional services corporations.  It does not require corporations, limited liability companies (LLC), or limited liability partnerships (LLP) to register their assumed name.

An assumed business name is any name other than that of the individual owner(s) of the business.  Example: Abraham Lincoln, P.C. would not need to register as an assumed name, but Lincoln Law would since it is not the actual name of the individual transacting the business as a professional corporation. 

In August 2019, the Assumed Business Name Act was amended, to add 805 ILCS 405/1a, effective January 1, 2020.  The amendment permits a person or persons transacting business under an assumed name at his or her personal residence, to list the county clerk as the default agent for service if listing their home address would put their safety at risk.  Certain conditions must be met in order to list the county clerk.  

  • The person reasonably believe that publishing his or her home address would put his or her safety at risk, and lists the reasons for that belief on a form submitted to county clerk, which shall be kept confidential;
  • The form is accompanied by a court order or police report;
  • The person provides the address of his or her residence to the county clerk, which shall be kept confidential.

The amendment further stipulates that the county clerk has a duty to notify the business of service of process on behalf of the business, and may charge a nominal fee for this service.  Therefore, effectuating service on an individual or individuals operating under an assumed name can be accomplished through the county clerk, like serving any other registered agent.  Whether the individual(s) receive(s) actual notice from the county clerk would not matter for purposes of jurisdiction, although this hasn’t been tested.

Lastly, the act does not list what the court order or police report must state in order, and leaves this question open for interpretation.  Must the police report or court order confirm there is a reasonable risk of safety for listing the home address?  

Additional Resource: Cook County Application to Register or Amend an Assumed Business Name

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This blog and any materials available at this web site are for informational purposes and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem.  The information in this article is current as of the date indicated, and may not be updated to reflect future changes/developments.  Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between the Law Office Of Christian Blume, LLC or Christian Blume and the user or browser.

Chicago Code Violations: How to Navigate the Administrative Hearing Process

Chicago Municipal Code Violations often times carry a potential fine. Know the process, know your rights!

Much like the federal government or state governments, local municipalities in Illinois are permitted to enact and enforce laws. In Chicago these laws are codified in the Chicago Municipal Code, and prescribe: building codes, business licensing, taxing authority, and many more.

While many of these laws are related to “public health, safety, welfare, morals and quality of life of the residents of the City of Chicago”, a violation may result in costly fines. Furthermore, as in the case of building code violations, or violations relating to the care of property, if those fines go unpaid, they may result in a lien against the real property.

For example, the current fine for not cutting or controlling weeds to the required length (§ 7-28-120) can range from $600 to $1,200. Each day the violation exists is a separate offense, which means that the fine can be multiplied by the number of days, and could potentially grow to an even larger amount, much like rapidly growing lawn weeds.

Does the City of Chicago always seek the maximum fine permitted by law? No, but the City could-and would-be within its legal right to do so.

Let’s say you have a neighbor that notices out of control weeds growing on your front lawn, and that person decides to report this alleged violation by dialing 311. The Department of Streets and Sanitation can send out an inspector to make a determination if a violation exists. If there is an alleged violation observed, the violation can be referred to the the City’s Corporation Counsel to prosecute and enforce the Chicago Municipal Code.

The prosecution of the ordinance violation(s), in many cases, is filed at the Chicago Department of Administrative Hearings (DOAH), a ‘quasi-judicial body’, and heard before an Administrative Law Judge (ALJ). ALJs are licensed attorneys, contracted to hear Administrative cases; they are not elected judges.

The rules for prosecuting Administrative Law cases are not as stringent as those in Circuit Court or Federal Court. One difference is that the City need not obtain personal jurisdiction over the individual or business being sued. In most civil cases, personal jurisdiction can be obtained through service of process, whereby the Sheriff or a special process server physically delivers a copy of the summons and complaint to the individual or entity being sued. When the City prosecutes an ordinance violation through the DOAH, it can serve the notice of the violation and hearing by regular mail.

On the date of the hearing, you (or your attorney) will likely file your appearance a-one-page form with your case information and contact info. Typically you (or your attorney) will meet with the Assistant Corporation Counsel (City Attorney), that will be prosecuting your case. During this meeting the City may request that you agree to an order to be entered on that day. Critically, you do not have to agree to the order being requested by the City and you have the right to be represented by your own lawyer at this meeting.

Depending on the nature of the case and what the City is seeking, your first hearing may be the last, and the case may conclude on that date. However, in instances where corrective action is sought, such as building code violations, there may be a return date, or dates, to ensure that the corrective action was taken. The case is called by the ALJ, and if an agreement was reached with the City Attorney, the ALJ will likely enter that order. If no agreement is reached, a hearing will likely be conducted by the ALJ, in which both the City and you will have the opportunity to present evidence, and argue the case. The ALJ will ultimately make a determination as to whether a violation existed and enter a judgement. If the judgment is not entered in your favor, you will have an opportunity to appeal that decision to the Circuit Court, but there are time constraints and specific requirements for filing an appeal.

What happens if you miss the notice by mail, and do not attend the hearing? Likely a default judgment will be entered against you, and the notice of the default judgment will be mailed. Does that mean you have to pay that amount? Not necessarily, you (or your attorney) can file a motion to set-aside the judgment, but there is a time limit to file this motion, in order for it to be considered timely.

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This blog and any materials available at this web site are for informational purposes and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between the Law Office Of Christian Blume, LLC or Christian Blume and the user or browser.

Home Buying: Can the other party reject Attorney Proposals?

In 2018 the Illinois Real Estate Lawyers Association (IRELA) released the newest version of the Multi-Board Residential Real Estate Contract, version 7.0. The contract is a template that many Illinois real estate brokers use to enter into a contract for the sale and purchase of a residential property in Illinois. Using a template such as the 7.0, brokers typically fill out the form, and negotiate the terms with the other party, prior to any attorney review. 

After the contract is accepted there is usually an Attorney review period, which is when the Attorneys for either side may propose modifications, accept/reject modifications, and review the contract, to ensure conformity with the client’s wishes. 

One of the updates to the 7.0 from the prior version is the section that applies the Attorney Review, paragraph 10. The Attorney Review paragraph provides that within five (5) business days after date of acceptance, the attorneys for the respective parties, by notice, may: 

  • Approve the contract; or
  • Disapprove the contract, which disapproval shall not be based solely upon the Purchase Price; or
  • Propose modifications to this Contract, except for the Purchase Price, which proposal shall be conclusively deemed a counteroffer notwithstanding any language contained in any such proposal purporting to state the proposal is not a counteroffer. If after expiration of ten (10) Business Days after Date of Acceptance written agreement has not been reached by the Parties with respect to resolution of all proposed modifications, either Party may terminate this Contract by serving Notice, whereupon this Contract shall be immediately deemed terminated; or
  • Offer proposals specifically referring to this subparagraph d) which shall not be considered a counteroffer. Any proposal not specifically referencing this subparagraph d) shall be deemed made pursuant to subparagraph c) as a modification. If proposals made with specific reference to this subparagraph d) are not agreed upon, neither Buyer nor Seller may declare this contract null and void, and this contract shall remain in full force and effect.

Prior to this change, it was common for attorneys to include language in the proposed modifications that limited the other side’s ability to reject the Contract based on the proposals, such as the following:

“Terms contained herein are only suggested or proposed modifications and should not be construed as a counteroffer, buyer reserves the right to withdraw any or all of these proposed modifications and to proceed under the terms of the original contract.” 

This language purported to not permit the party receiving the modification letter to cancel the contract without responding to the proposed modifications, based solely on the proposals. 7.0 changed this practice.  

Under the new Contract, the parties may designate under which provision the proposed modifications are made.  If the modifications are made pursuant to 10(c), language indicating that the proposals are mere proposals and not counter-offers will be disregarded. 

If the proposals are made pursuant to 10(d), they are treated as mere proposals, and may be ignored or address. However, if they are not addressed or only partially addressed, neither party may declare the Contract null and void. 

It is therefore important to designate under which provision your proposals are being made.  Proposals which are must have, should be made pursuant to paragraph 10(c), however other less significant proposals, that a party may not need, may be made pursuant to 10(d).

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This blog and any materials available at this web site are for informational purposes and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between the Law Office Of Christian Blume, LLC or Christian Blume and the user or browser.

Buying or Selling Real Estate in Illinois: What Does a Lawyer Cost and Do I Need One?

For Illinois residential real estate closings (buying or selling a home), attorneys typically charge their clients (buyers or sellers) a fixed-fee for the entirety of the representation.  It is common for residential real estate closing attorneys to collect their fee only if the closing actually takes place; or a lessor portion if the closing does not take place. 

When representing sellers in residential real estate closings, attorneys will often act as title agents as well.  Sellers typically deliver a title commitment for a title insurance policy, which covers potential defects/issues with title that may appear after closing. Most of the work preparing the title insurance is done by an agent of the title insurance company.  If an attorney is representing you in the sale of your home and is also acting as the title agent, then your attorney is required to disclose this to you and the other party.  Attorneys generally collect a portion of the title insurance premium, which sellers and buyers pay to the title agency, for their work as title agents.  

For commercial closings, attorneys in Illinois might charge a flat fee or an hourly fee, depending on the Attorney and the transaction.  Commercial closings may include more time and resources than a residential transaction.  

As a buyer or seller of real estate in Illinois, you are not required by law to have an attorney; however, there are many legal technicalities and issues a trained and experienced attorney may be able to spot, that you may not. In many cases, a real estate purchase may be the first time an individual or couple ever hires a lawyer.

A residential real estate attorney can draft the contract, but the contract is often drafted by the listing or buying broker and signed by the client prior to any discussion with an attorney.  After a contract is drafted and signed, an attorney will review the contract and discuss the content of the contract with the client.  An attorney can determine if the contract aligns with the client’s understanding and objectives.  Based on experience and each client’s unique situation, attorneys propose modifications to the contract during the attorney review period.  Attorneys also review modifications proposed the other party (seller/buyer).  Common modification requests can include: property tax proration amounts, mortgage contingency deadlines, inspection defects (either to be repaired or a resolved with a credit at closing); and the closing date.

After the review period is complete, attorneys will make sure deadlines are met and proper documents are prepared correctly.  This can include mortgage contingencies, pre-closing inspections, surveys, pay-off letters, transfer documents, title commitment documents, transfer tax stamps, and compiling and reviewing closing numbers.  At closing the Attorneys will review the closing documents and explain the significance and meaning of the documents to their respective clients.  When representing buyers, attorneys walk their clients through complicated mortgage loan documents.  Additionally, the Attorneys may resolve disputes that arise at closing. 

*Christian is an Illinois business and real estate lawyer and is happy to speak with you and assist with your start-up or small business. Call (773-706-7514) or email (christian@attorneyblume.com)

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This blog and any materials available at this web site are for informational purposes and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between the Law Office Of Christian Blume, LLC or Christian Blume and the user or browser.