Category: Real Estate

Real Estate Law topics for residential real estate and commercial real estate matters

Real Estate, Real Estate Sales and Purchases

YOU CLOSED THE SALE OF YOUR HOME. NOW WHAT TO DO?

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We are excited to have represented you for the closing of the home sale.

You have signed the Seller documents, including the Deed, Bill of Sale, and other materials, and completed the closing. What’s next?

Our office will send to you a scan of the closing documents for safekeeping, and we will provide you with any “hard” copies that you wish to have.

You will contact utilities (other than water department) to advise them that the property is sold and that as of midnight on the date of closing the utility account should be removed from your name, and tell them where to send your final billing (or perhaps you already have).

You will reach out to the property insurance company to advise them that you have sold the property and closed the sale. This way, if your insurance for the property has been prepaid for any period beyond the closing date, you will be able to request a refund of premiums for the insurance policy (your insurance agent should be able to do that without a concern).

You will put in a change of address with the US Postal Service and contact anyone who you know may be sending important packages or mail, so that they have the new or forwarding address.

You will confirm that any contracts for service (landscaping, snow removal, water softener supplies, HVAC maintenance) that have been in place for the property address are canceled (or perhaps transferred to the new owner). 

You will review, once more, the handling of the County real estate taxes post-closing. This includes taxes that will come due in the year or more following the closing for dates of your ownership pre-Closing. If the tax bill comes to you, as the Seller, it is not your bill to pay. Notify our office that you received this.

Finally, you will reach out to your accountant/tax preparer to find out what information they would like to see (usually only the Settlement Statement from the Closing). In this way, they can discuss with you the need to pay any capital gains taxes relating to the sale, or confirm with you that there will be no taxes to be paid.

Real Estate, Real Estate Sales and Purchases, Real Estate Tax

The Effect Of The 2026 Bump In The Illinois Homestead Exemption From $30,000 to $100,000 Per Couple?

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The Homestead Exemption in Illinois has been a small but useful part of the many exemptions an Illinois resident may assert in the face of enforcement of a judgment or in a bankruptcy. In January 2026 the exemption was increased in a big way.

An Illinois homeowner facing a judgment creditor or a bankruptcy may be threatened with the loss of the equity in their home. Even if the debt or the bankruptcy involves only one of the married homeowners, this can be scary and financially crippling. Under the law, when the homeowner living in their Illinois personal residence has equity in the home, they can in most instances retain the Homestead Exemption amount created by Illinois law if the home is subject to sale to pay a debt or in a bankruptcy. 

Most recently, the amount of the exemption was $15,000, and each owner on title that is living in the home gets the same exemption. So spouses were able to claim a $30,000 exemption together.

Beginning January 1, 2026, the Homestead Exemption for Illinois was modified to increase the exemption to $50,000 for each title owner living in the home. Spouses on title are now able to claim an exemption of $100,000, which is a huge difference for those needing to protect equity in their Illinois home.

Who should be thinking about this change in the law?

Estate planners who focus on the intersection of asset protection planning and estate planning will consider the new exemption limits as well.

Estate planning clients often engage in their own planning. Looking to avoid probate costs by putting their children or others on title, or transferring their ownership altogether, is a private strategy often concerning to the estate planning attorney. This may seem useful to the client, but the strategy can backfire and considering the entire picture is essential — especially now with the enhanced Illinois Homestead Exemption.

Lenders and others making loans to homeowners and entering into contracts with homeowners will do well to consider the new exemption when determining whether to do business with a homeowner.

If you have questions about the change in the law, whether for debtor/creditor considerations or estate planning, the Attorneys at Marc D. Sherman & Colleagues PC can set up a consultation. Reach out here for contact information: https://mshermanlaw.com/contact/

Real Estate, Real Estate Development

Illinois Landlords Listen Up! Illinois Safe Homes Act Change January 2026

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The New Year 2026 will bring a variety of changes to Illinois law. One of those will be effectivce January 1, 2026, when private Illinois housing providers will need to include a summary of the Illinois Safe Homes Act as the first page of all residential leases.

The Act was introduced back in 2006, with the goal of providing protections for survivors of domestic and sexual violence. Illinois legislators passed the “Summary of Rights for the Illinois Safe Homes Act” (Public Act 103-1031). The mandatory summary to be provided by landlords must be included with new leases and lease renewals starting in 2026.

What does the Summary include? There is a summary of tenant rights and protections under the law, such as the right to terminate a lease early when the tenant is subject to a threat of domestic or sexual violence, without penalty. There is also a right to change or re-key locks to prevent further abuse. Eviction protections based on incidents of domestic or sexual violence are included in the Act and in the summary description. The prohibition on discrimination is also covered.

And the summary includes a list of free legal service providers.

Who should pay attention? Both landlords and those who represent landlords for leasing purposes should become familiar with the Act, the requirement to now attach the Summary of the Act to the front of the Lease, and the penalties for failure to comply.

Want to check out a copy of the Summary? Click here: https://dhr.illinois.gov/legal/summary-of-rights-for-safer-homes-act.html

Want to discuss the Illinois Safe Homes Act? Contact the Attorneys at Marc D Sherman & Colleagues, PC using this link: https://mshermanlaw.com/contact/

Estate and Probate, Estates Planning And Probate, Real Estate, Trusts

Property-Efficient Life Planning Is A Real Topic; A Series

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Tax-efficient retirement planning is an important focus, and particularly for those who are at an age where they can reasonably work with their expert to implement strategies to acheive the best possible tax-free retirement income plan.

The focus on property-efficient life and asset planning is frequently overlooked while the tax-efficiency discussions are being created. But property-efficient planning is equally and sometimes more important.

No one likes to consider that our lives are fragile. Accidents, illness and debts are usually thrust upon us or upon our family members with little time to pivot and consider the short and long-term effect on our property. No one has, as it is said, the “crystal ball.”

So what do we do to acheive property-efficient life planning?

This series explores the many considerations that should be part of your discussions with your estate-planning attorney.

A start…

The best place to start is with a discussion about just what is a person’s “estate”. I am often confronted with the person who claims that they do not have an estate. They are of modest means and regular, but not to them “significant” property interests.

Everyone has an estate. We all have property interests of several types.

Your estate consists of all of the tangible and intangible things that make up your day-to-day existence. We have ideas and plans and information that we have gathered. Some of these are the subject of formal trademark, copyright, patent and other protections that are provided by statute and common law. These types of property interests are protectible and they have value, regardless whether they are the subject of current or future protections and filings. And the value may be or become nominal and unworthy of planning for future protection. But until that time, we need to talk about it.

You also may have businesses and business interests. These property interests are usually formalized by partnership or joint venture agreements or by stocks or other certificates. Or they may not yet be at a stage where they are included in formal agreements and entity registrations. So, some of these property interests are tangible and some are intangible. Regardless where we are at in the discussion, we need to talk about it.

We have rights created by contract – called, aptly, contract rights. The right to do or to get something, or to have the value of something or the value from some activity now or later. Think rights to royalties for songs or books written, rights to the use of our pictures or art or our own likeness, and rights to receive payment for something that we have created and that we are now or in the future going to give another the opportunity to use, for a price (or perhaps for free).

We have real estate interests. These are interests in real property of one sort or another. These include leases of real estate, title to all or a part of residential, commercial or other real property, and even interests in the real estate owned by another person or entity such as an “easement” or other right to use the other person’s real estate. And each of these interests have many actual or potential legal connections: the Condominium Association, the Landlord or Tenant, and the neighboring property owner, to name a few.

And, of course, there are all of the other “personal property” interests. Including, for example, furniture, equipment, jewelry, tools, automobiles and boats and other watercraft, and all of the other myriad ‘stuff of life’.

True. The person who leads a reasonably simple life and lifestyle may not have an “estate” with broad types of property interests. But they do have an estate nevertheless.

For most others, and not simply those who have become “successful” in their creation of wealth, judged by wealth, the scope of their “estate” becomes the important subject of discussion with their estate planning attorney.

Read on, as our series explores the many positive aspects of estate and property-efficient life planning.

Bankruptcy, General Litigation, Real Estate

MORTGAGE FORECLOSURES & JUDICIAL SALES ARE ABLE TO GO ONLINE IN 2025

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A new development for those interested in purchasing properties at foreclosure auctions.

Effective January 1st, Illinois law permits the sheriff or other persons conducting judicial sale of real estate in mortgage foreclosure proceedings to do so either in person, online or both. 735 ILCS 5/15-1507(b)(2).

Of course, one goal of the change in the law is to help to expand the number of people interested in and able to attend auctions.

The new rules for this online sale procedure at included in the Mortgage Foreclosure Law at Section 15-1507.2.

Interested bidders should be aware that the person/entity conducting the sale can add a fee for associated costs of the online sale provider, and the supervising court must be satisfied with the process and procedure for the online auction and record-keeping steps, and bidders registration will be set up to assure pre- and post-sale communication and compliance.

We will be watching for updates from the Sheriff’s Office and most-used judicial sales entities, to keep our clients advised.