Bulletin: IL2025001

Dear Associates:

On August 9, 2024, Illinois passed Public Act 103-0993, creating the Prohibition of Unfair Service Agreements Act. (765 ILCS 175/1) 

The Act provides that unfair service agreements are unenforceable and that recording of such agreements against residential real estate is prohibited. Should an unfair service agreement be recorded, it shall not provide actual or constructive notice against a bona fide purchaser or creditor. Characteristics of unfair service agreements are set forth in the Act.

The purpose of the new Act, as stated therein, is:

• To prohibit the use of service agreements that are unfair to an owner of residential real estate or to persons who become owners of the real estate in the future.
• To prohibit the recording of unfair service agreements so that the public records will not be clouded by them, and future owners will not be put to the burden of bringing suits to remove them from their chains of title.
• To provide remedies for owners who are inconvenienced by the recording of unfair service agreements.

Additional provisions can be found in the full version of the Act.

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