Bob Floss II elected to IRELA Board of Directors

Bob Floss II is honored to be elected to the Illinois Real Estate Lawyers Association Board of Directors. Bob will continue to serve in his capacity on the legislative committee to further initiatives to protect the general public in real estate transactions.

Real estate attorneys work tirelessly on behalf of our clients to represent our clients and ensure every real estate transaction is handled honestly and ethically. As bad actors flood the marketplace, having a trusted real estate attorney in the transaction is more important than ever.

Bob Floss II also serves on the Illinois Real Estate Law Section Council.

Illinois passes HB3564 to limit tenant move in fees

On April 8, 2026, the Illinois legislature officially passed House Bill 3564 with a vote of 60-40. The author of the bill, Representative Nabeela Syed of the 51st District (Hawthorne Woods, Long Grove, Lake Zurich, Deer Park, Kildeer, Palatine, Rolling Meadows, Hoffman Estates, Schaumburg) has introduced a trailer bill, HB5234 to move the effective date of the bill to January 1, 2027.

What does the bill say?

1. No landlord may charge both a security deposit and a move-in fee or move-out fee.

2. All non-optional fees, one-time or recurring, shall be explicitly contained on first page of lease agreement. If the fee is not listed on the first page of the lease, the tenant shall not be liable for payment.

3. Ban on junk fees:

   • Fee for rental application, including background checks, cannot exceed $50 unless the actual cost charged by the third party provider is greater than $50, the landlord pays the upfront cost, and landlord bills tenant within 14 days and provides receipt. If bill and receipt not provided in 14 days of the background check, the tenant is not liable to pay. Failure to pay may not be used as grounds for eviction.

   • Any fee or fine ancillary to the application fee intended to duplicate the costs of tenant screening or unrelated to screening.

   • A fee or fine for modification or renewal of lease.

   • A fee or fine for eviction notice or filing eviction action prior to court order. Does not limit court awarding fees at conclusion of case.

   • A fee or fine for after hours requests or maintenance.

   • A fee or fine for contacting building owner or property manager for maintenance or service requests, lease questions, or anything related to tenancy.

   • A fee or fine for travel to complete work or repairs to unit.

   • A fee or fin for hotline service for tenants to call.

   • A fee or fine for routine maintenance.

   • A fee or fine for pest removal.

   • A fee or fine for in-person inspection at move-in or move-out.

4. If you charge a move-in or move-out fee, you must provide an itemized list of the reasonable estimate of costs of services, including any bundled services, that make up the move-in or move-out fee.

5. The tenant may opt out of any bundled services on the itemized list.

6. The move-in or move-out fee shall not be in excess of the costs in the itemized list.

7. The landlord may NOT charge the tenant for costs associated with routine maintenance and upkeep of the unit or premises.

What does this mean?

Landlords in Chicago have avoided taking security deposits to avoid exposure to predatory legal action under the Chicago RLTO. The RLTO is notorious for containing several provisions that award tenants double, or triple, the amount of the security deposit in automatic damages for small infractions with no right to cure. It resulted in a field of lawyers that represent tenants by looking for any infraction in order to penalize the landlord and collect fees. HB3564 is a statewide bill that has little effect for downstate landlords but huge ramifications for Chicago landlords. Clients will have to weigh the risk of accepting security deposits.

Landlords often use move-in and move-out fees to cover the costs to prepare a unit for rent. Bob Floss II, as a member of the Illinois State Bar Association Real Estate Law Section Council, submitted commentary on the bill that handcuffing the costs landlords incur in turning over a unit will directly lead to further raising rents. Unfortunately, the legislature moved forward with the bill. This measure surely will be used by the 22 State Representatives and 12 State Senators as a campaign point in re-election. As the nation grapples with affordable housing, the Illinois legislature has put additional burden on landlords that will require passing along those costs through higher rents across the state.

Do I need a real estate attorney for the sale of my house?

Are you in the process of buying or selling a property? Whatever the case may be, it's essential to have an experienced real estate attorney by your side. Here's why:

1. Complex Legal Documents: Real estate transactions often involve complex legal documents, such as purchase agreements, deeds, and title transfers. An attorney can review these documents to ensure that they are legally sound and protect your rights as a buyer or seller.

2. Legal Expertise: A real estate attorney has the legal expertise and knowledge necessary to navigate the complex laws and regulations that govern real estate transactions. They can provide you with invaluable advice and guidance throughout the process.

3. Contract Negotiation: Whether you're buying or selling a property, negotiations are an integral part of the process. An attorney can assist you in negotiating favorable terms and conditions that meet your needs and protect your interests.

4. Title Issues: Title issues can derail a real estate transaction and result in significant financial loss. A real estate attorney can help you identify and resolve title issues before they become major problems.

5. Dispute Resolution: If you encounter a problem that turns into a dispute between both sides, you want an attorney that can represent you in negotiations or in court and help you achieve a favorable outcome.

6. Peace of Mind: Real estate transactions can be stressful, particularly if you're dealing with legal issues or complex transactions. Hiring an experienced attorney can provide you with peace of mind, knowing that you have a legal expert by your side who is working to protect your interests.

Hiring a real estate attorney can be a smart decision, particularly if you're dealing with complex legal issues or transactions. An attorney can provide you with invaluable legal advice, guidance, and representation throughout the process, ensuring that your rights and interests are protected. Contact a real estate attorney today to learn more about how they can assist you in your real estate transaction.

Personal Liability for LLC Manager in City of Chicago

In another example of the City of Chicago operating by their own set of rules, the City has obtained personal judgment against the Manager of an LLC for unpaid water account debt.

The State of Illinois legislature and Courts have long held the Member or Manager of an LLC is not personal liable for the debts of the LLC. The exception to this standard is wrongful acts or omissions by the Member of Manager (which has typically been fraud). It was this exception to the rule that allowed the Court to rule against the Manager in Gerese Tadros v. The City of Chicago Department of Administrative Hearings, at al (2021 IL App (1st) 200273)).

The Court took the stance to interpret that exception to Member’s or Manager’s to be held liable for wrongful acts or omissions to show a Member or Manager can be held personally liable in certain situations. In addition, the City of Chicago municipal ordinance states, an agent of legal title holder, or person who is authorized to manage or dispose of premises, may be deemed an owner and held liable for water payment. Coupling these two together, the Court took the position the Manager of an LLC, who can be held liable for acts or omissions as owner of a property, therefore can have a personal judgment placed against them by the City of Chicago.

It’s a terrible interpretation of the LLC statute and only underscores the idea the City of Chicago demands to operate by their own playbook. We expect this case law to challenged, but LLC Managers should be aware of it’s existence when dealing with the City of Chicago.