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Legal updates from Three Rivers Association Attorney

By Gary S. Mueller, Mueller & Associates, LTD

Phone:  815-725-7300                        e-mail:  This email address is being protected from spambots. You need JavaScript enabled to view it.

Gary Mueller resized cropped CopyRealtor RPAC Sterling no colour 2020 reduced

July 2020

Life, as we know it, is not like life has been before.  Life as we now know it may become our new normal.

So……what does that practically mean?  If you have not already done so, revamp your business model and look for ways to make your practice compliant with all the current and new requirements. In my opinion, we may have to wear masks in public for an extended period of time.  In my opinion, we are likely looking at virtual tours/open houses and the use of all technological advances to keep the real estate industry moving forward.  I have heard of “walk throughs” that consisted of the REALTOR ® holding his or her phone up while the client examines the interior of a home to be purchased.  Who would have thunk?  My caution is----make sure you stay on top of the local, State, and Federal requirements.  Keep cognizant of the stage or level that is current for the area.  Additionally, remain mindful and respectful of the desires and expectations of clients---some will demand Covid compliance while others will proceed as if there is no pandemic.  Be prepared for how you will respond to whichever type of client you are assisting……

While we have been dealing with a myriad of concerns on the social, medical, and economic fronts, decisions that affect our industry continue to be made.  The following are some of those decisions:

  • Landlords sued Governor Pritzker over his Executive Order to put a moratorium on evictions due to the pandemic. The stated rational behind the order is that tenants are having trouble paying rent due to the government shut-down of businesses; the failure to pay rent is due to the government’s actions rather than a cognitive decision of the tenant to simply choose NOT to pay rent.  The suit basically argues that the Governor lacks the authority to establish this moratorium; the landlords have bills too and the order, indicating that tenants cannot be evicted, will encourage tenants NOT to pay rent;
  • In Kai v Board of Directors of Spring Hill Building 1 Condominium Association, 2020 Il App (2nd) 190642, the Appellate Court held that a Board of Directors breached its fiduciary duty of using good business judgment when the Board forced all unit owners to approve a bulk sale of units to a buyer the Board actually controlled.  In that case, as the closing occurred more than one year prior to the case, the Appellate Court did not allow the contracts to be rescinded but indicated that punitive damages could be awarded (which would NOT be covered by the Officers and Directors liability insurance coverage paid for by the Board);
  • In two foreclosure cases out of DuPage County (Bank United National Ass’n v Giusti, 2020 Il App (2nd) 190522 (June 15, 2020) and US Bank, National Ass’n v Reinish, 2020 Il App (2nd) 190175 (April 21, 2020), the Appellate Court held that a debtor could not successfully challenge the service of the case by a special process server when the service was completed 7 YEARS prior to the suit and a bank’s technical error in the notice of acceleration to the debtor did not, thereafter, allow the debtor to successfully challenge the foreclosure when the debtor did not make a mortgage payment, respectively.  These would appear to be straightforward cases, but the challenges presented could have resulted unsettled foreclosure procedures moving forward.

At the time of this writing, it appears that the reign off all professional baseball teams to indicate they were tied for first has come to an end. By the time you read your August Rap, professional baseball will be back on track!  Currently, it appears that professional football may be headed for a full season. 

In my opinion, though it is wonderful to have sports back, gyms back, hair salons back, and restaurants and bars coming back, I vow to remain vigilant when it comes to staying safe and healthy.

Speaking of healthy, a thank you to all who prayed for me and a speedy recovery from open heart surgery.  All went very well and, in the words of the immortal Michael Jordan, I’m back…………

Take care and stay safe. Hope to work with each of you soon.