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
Wednesday, January 11, 2017
"Well and Septic Issues for Lawyers"
Terry VanderMeersch is a registered sanitarian and experienced
professional consultant in the field of on-site water and
wastewater disposal technology.
Terry will provide a valuable update on what is happening in
the area of well and septic issues for IRELA members. Even if
you practice primarily in Cook County or other areas where
properties are connected to municipal water and sewer systems, you
need to be conversant with the issues which apply when you have a
transaction involving well and septic systems.
Learn what you need to know.
IRELA will also conduct its annual election of officers
and directors at this meeting.
IRELA President Ralph Schumann will also provide updates on
important developments and issues of the day affecting real estate
practitioners, including the Inter-Industry TRID Panel
Discussion CLE held in Chicago which IRELA sponsored with the
IDPFR's TRID Working Group, the Inter-Industry
TRID Panel Discussion CLE held recently in Springfield, ethical
issues facing real estate practitioners, LLLTs, Practice Issues
relating to TRID implementation, Cybersecurity, and Best Practices
To access and
download the Residential Real Property Disclosure
case discussed at
the January 11th meeting, click on:
Attend to learn about current
IRELA's Next Meeting:
When: Wednesday, January 11,
8:00 am - 9:30 am
Where: Belvedere Events and
1170 W Devon, Elk Grove Village, IL 60007 |
December 14, 2016 "Behind the
Scenes" Panel Discussion with Title Insurance Company
Patty Woods of Attorneys' Title
Guaranty Fund, Inc. (above, front row, left) participated as a
title company representative on IRELA's special December 14th
Panel. Also participating were Mojca Anaya of
First American Title (above, front row, center), and
Michele Clement of
Fidelity National Title (above, front row, right). Back
row: IRELA President Ralph Schumann, First
Gonzalez, and IRELA
Association Attorney Jeff
The Panel addressed:
"Behind The Scenes" -- What Goes on at the
Title Company to Get the Deal Successfully Closed in Compliance
PHH Corporation v. Consumer Financial
Protection Bureau -- The D.C. Circuit
federal appeals court ruled October 11, 2016, on claims of PHH
Corp. raised in a case challenging a CFPB enforcement action which
had imposed a $109 million fine. The CFPB survived a
constitutional challenge and will remain in business, though the
court took away power from its director and tossed out the $109
million penalty. The court affirmed the application of RESPA,
providing consistency integral to ensuring appropriate business
practices and additional clarity.
The D.C. Circuit ruled that "unchecked power" given to
the director of the Consumer Financial Protection Bureau is
unconstitutional, and fashioned a remedy giving the president the
power to supervise and remove the agency's director. Although
PHH had claimed that the entire structure of the CFPB was
unconstitional, the court stopped short of dismantling the CFPB.
The majority opinion by Judge Brett Kavanaugh instead opted for
striking down the provision requiring cause for removal of the
agency's director, and indicated:
"The CFPB therefore will
continue to operate and to perform its many duties, but will do so
as an executive agency akin to other executive agencies headed by a
single person, such as the Department of Justice and the Department
of the Treasury."
To access and download a copy of the decision, click on
PA 99-743 -- A Response to
the 2015 Mendelson Case
The legislature has responded to the 2015 decision of the
Second District Appellate Court in
by enacting Public Act 99-743,
which amends Section 6.5 of the Trusts and Trustees Act and
(760 ILCS 5/6.5 new)
Transfer of property to trust.
(a) The transfer
of real property to a trust requires a transfer of legal title to
the trustee evidenced by a written instrument of conveyance and
acceptance by the trustee.
(b) If the transferor is a trustee of the trust, an interest in
real property does not become trust property unless the instrument
of conveyance is recorded in the office of the recorder of the
county in which the property is located.
Ralph Schumann addressed the Will County Bar Association on June 8,
2016 regarding TRID developments and the Multi-Board Residential
Real Estate Contract 6.1.
To access the
Powerpoint for the CLE Presentation, click on:
Schumann Powerpoint June 8,
April 5, 2016: IDFPR - IRELA --
TRID Inter-Industry Panel Discussion
TRID INFORMATIONAL PANEL
With Industry Leaders on
and several industry partners, including
TRID Panel Discussion April 5th
Real Estate Industry representatives.
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
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.
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,
2016 IDFPR - TRID Inter-Industry Seminar and
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
IRELA's President Ralph J.
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
ABA - Schumann
Article on Technology and Real Estate
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
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.
TRID Q & A:
Handling Walkthrough Changes and Credits
- See more at:
- See more at:
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:
A recent ALTA update discusses this
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;
3. When a prepayment penalty is
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.
To download the Agenda from the January 13, 2015
meeting, click on:
To download the Agenda from the December 9, 2015
meeting, click on:
Contract Update: Multi-Board Residential Real Estate
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:
To access and download a Comparison Chart
for the new 6.1 contract, click on:
Multi-Board 6.1 Comparison
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.
TRID THREE DAY CLOSING DISCLOSURE CHART
To access and download the chart, click on:
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:
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,
Schlueter and Anselmo Reference
IRELA President Ralph J. Schumann
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:
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
To access a recent handout used in connection with a title
company presentation on the implementation of the new CFPB Forms,
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
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
To access and download Peter Birnbaum's Bulletin,
provided here with permission, click on:
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.
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
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:
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.)
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
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.
Governor Quinn Issues Amendatory Veto to Condo Bill SB
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
IRELA contributes $2,500 to Lawyers Feeding
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.
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
Residential Real Estate
The NEW Multi-Board
Residential Real Estate Contract 6.1, © 2015, Illinois Real
Estate Lawyers Association ("IRELA") is 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. This fourteen page document includes 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:
Multi-Board Residential Real Estate Contract
This PDF bears a "SAMPLE" watermark. While it has the
official text of the 6.1 contract, it is not a fillable PDF.
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
IRELA President Ralph
Schumann recently presented on Wills and Trusts at a
"Property After Death" event held September 17, 2016 at Malcolm X
IRELA was a sponsor of a recent
IDFPR TRID Panel in Springfield, Illinois.
The event took place September 9,
2016, at the Capital City Training Center.
Schumann (fourth from right) is pictured with moderator Linda
Grahovec (third from right), IDFPR Secretary Bryan A. Schneider
(second from right), and other IDFPR officials and panel
IRELA President Ralph
Schumann testified recently before a Senate Committee in support of
Senate Bill 2688, which provides a mechanism for the IDFPR to curb
certain abuses in the title insurance industry, and specifically
authorizes IDFPR to take steps to prevent kickbacks and other
practices which violate Section 8 of the Real Estate Settlement
Procedures Act (RESPA).
IRELA President Ralph Schumann Presented at ATG's April 9, 2016
"Navigating a Real Estate Transaction":
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.
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
To access and download the article, click on:
"Are You Ready for the New Residential Real Estate
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
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.
Watch this space for more information. Contact IRELA
with any questions.
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.
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
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
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
IRELA President Ralph Schumann was interviewed recently for a
story that aired on National Public Radio's 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."
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.