It’s vital for any real estate professional to stay up to date on changes in case law. Decisions rendered by our Courts can affect the way we approach problems by providing guidance on how to interpret issues. Below are the latest decisions I think every real estate professional should know.
Sienna Court v. Champion Aluminum (2018 IL 122022). Court determined that the purchaser of a newly constructed home may NOT assert a claim for breach of an implied warranty of habitability against a subcontractor of new construction home. The Court determined the subcontractor had no contractual relationship with the purchaser, and therefore purchaser could not bring suit.
Hometown Condominium Association No. 2 v. Mohammed 2018 IL App (2d) 171030. Defendant purchased condominium unit at sheriff’s sale after foreclosure but did not pay condo assessments after purchasing unit. HOA filed complaint for forcible entry and detainer against new owner. Defendant’s partial payment of 1 month of postforeclosure assessments, made 17 months after confirmation of sale, was not sufficient to extinguish HOA lien. By failing to pay postforeclosure assessments, the lien survives.
U.S. Bank N.A. v. Quadrangle House Condominium Association 2018 IL App (1st) 171711. Bank promptly paid postforeclosure assessments several months after purchasing condominium at judicial foreclosure sale. The condo association lien was extinguished.
Glaser v. City of Chicago 2018 IL App (1st) 171987. Appellate Court affirmed Zoning Board of Appeals reversal of zoning administrator’s decision to deny application for zoning variations. Board’s decision to grant height and setback variations was not against manifest weight of the evidence. Plaintiff presented case that strict compliance with zoning would cause difficulties and hardships to rehab older property built long before current zoning laws. Defendant evidence that home would be larger and taller than neighboring houses and interfere with light, air, and privacy does not render Plaintiff’s evidence incompetent.
RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT
Blevins v. Marcheschi, 2018 IL App (2d) 170340. Sellers of home represented on Residential Real Property Disclosure Report they were not aware of material defects in walls or floors. After closing, buyers discovered damage behind kitchen walls, including fungal growth, corrosion, wet wood, and water damage to exterior walls. Total cost of repairs was $45,000. The remediation company concluded the previous homeowner had to be aware of the damage. Suit was brought for breach of contract, consumer fraud, fraudulent misrepresentation, and negligent misrepresentation. The trial court dismissed the suit on grounds the Residential Real Property Disclosure Act contains a limitations of one year for all claims from date of possession, date of occupancy, or date of recording. The appellate court reversed, holding the Disclosure Act was “not intended to limit or modify any obligation to disclose created by any other statute or that may exist in common law in order to avoid fraud, misrepresentation, or deceit in the transaction.” The fraud was committed by representation on the Disclosure Report, but the complaint was based on common law claims, and therefore not subject to the one-year statute of limitations. The case has been sent back to trial court.
SNOW AND ICE REMOVAL ACT
Hussey v. Chase Manor Condominium Assoc. 2018 IL App (1st) 170437. An informal pathway behind a condo building used by residents to reach the parking area is not a “sidewalk” under the Snow and Ice Removal Act’s immunity. Court determines a “sidewalk”, for purposes of the Act, means a municipal right-of-way, the part of the public street reserved for pedestrian use that abuts private residential property. Plaintiff not able to recover for injury.
1002 E. 87th Street, LLC v. Midway Broadcasting Corp. 2018 IL App (1st) 171691. A new landlord that purchased a property does not have a right to recover rent due from before it owned the property. New landlord may enforce lease obligations from date of closing. New landlord cannot file suit for breach of guaranty or collect under guaranty for failure to pay past due rent because it does not have standing to sue.
Jameson Real Estate, LLC v. Ahmed. 2018 IL App (1st) 171534. Summary Judgment entered for Plaintiff real estate brokerage for failure to be compensated in purchase of commercial real estate. Defendant purchased off-market property based on Plaintiff’s broker providing information and was not compensated. Plaintiff introduced property to Defendant and acted as agent for negotiations until Defendant structured a deal with seller and circumvented the broker. Plaintiff broker recovered reasonable amount of commission that would have been collected.