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2005 Illinois Code - 765 ILCS 86/      Land Sales Registration Act of 1999. Article 5 - Registration Requirements


      (765 ILCS 86/Art. 5 heading)
Article 5. Registration Requirements

    (765 ILCS 86/5‑5)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5‑5. Registration requirement; exemptions. It is unlawful for any person to engage in the business of selling land that is located outside the State of Illinois to any individual located in Illinois without a certificate of registration issued by the Office of Banks and Real Estate pursuant to this Act. Unless the method of sale is adopted for the purpose of evasion of this Act, the provisions of this Act do not apply to an offer or disposition of an interest in land:
        (1) by a purchaser of subdivided lands for the
    
purchaser's own account in a single or isolated transaction;
        (2) if fewer than 25 separate lots, parcels, units
    
or interests in subdivided lands are offered by a person;
        (3) on which there is a commercial or industrial
    
building, shopping center, house, apartment house, condominium structure, or town house, or as to which there is a legal obligation on the part of the seller to construct such a building within 2 years from the date of disposition;
        (4) that is sold for industrial, commercial, or
    
institutional purposes;
        (5) that consists of cemetery lots or interests;
        (6) that consists of a subdivision as to which the
    
plan of sale is to dispose of it to 10 or fewer persons; or
        (7) in lots or parcels of 20 or more acres,
    
unconditionally, or of 10 or more acres if there is free and ready access leading to county‑maintained roads.
(Source: P.A. 91‑338, eff. 12‑30‑99.)

    (765 ILCS 86/5‑10)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5‑10. Application for registration.
    (a) Before subdivided lands are offered for sale, the subdivider or the subdivider's agent shall file with the Office of Banks and Real Estate an application on forms supplied by the Office of Banks and Real Estate. A registration fee shall accompany the application. The application shall contain all of the following information:
        (1) The name and address of the fee title owner of
    
the subdivided lands.
        (2) The name and address of the subdivider.
        (3) The name and address of an agent of the
    
subdivider in Illinois authorized to accept service of process on behalf of the subdivider.
        (4) The legal description and acreage of the lands,
    
together with a map showing the layout as recorded or proposed and the relation of the lands to existing streets or roads, waterways, schools, churches, shopping centers, and local bus and rail transportation, with a statement of distances to each.
        (5) A true statement as to title to the subdivided
    
land, including all financial encumbrances and unpaid taxes thereon.
        (6) If subject property is in a land trust, a true
    
statement of the names and addresses of all parties with a beneficial interest in the trust.
        (7) A true statement of the terms and conditions by
    
which it is intended the subdivided land will be sold, together with copies of any and all forms of contract or conveyance intended to be used. If a language other than English was used in advertising the property or during the sales presentation, translations, in that language, of the Illinois Public Property Report, any contract or lien, and any note shall be provided to the purchaser before the purchaser executes the contract. A receipt for these translations shall be obtained and a copy of the receipt shall be kept available in this State and subject to inspection by the Office of Banks and Real Estate for 3 years from the date of the receipt.
        (8) A true statement of provision for sewage
    
disposal and public utilities, if any, in the proposed or existing subdivision, including water, electricity, gas, and telephone facilities.
        (9) A correct reference to applicable zoning
    
ordinances and regulations.
        (10) Certified financial statements of the
    
subdivider.
        (11) A proposed public property report, suitable for
    
distribution to any proposed purchaser if a certificate of registration is issued, which shall contain the following information:
            (A) the name and principal address of the
        
subdivider;
            (B) a general description of the subdivided
        
lands, stating the total number of lots, parcels, units, or interests in the offering;
            (C) the significant terms of any encumbrances,
        
easements, liens, and restrictions, including zoning and other regulations affecting the subdivided lands and each lot or unit, and a statement of all existing taxes and existing or proposed special taxes or assessments that affect the subdivided lands;
            (D) a statement of the use for which the
        
property is offered;
            (E) information concerning improvements,
        
including streets, water supply, levees, drainage control systems, irrigation systems, sewage disposal facilities, and customary utilities, and the estimated costs, date of completion, and responsibility for construction and maintenance of existing and proposed improvements that are referred to in connection with the offering or disposition of any interest in subdivided lands;
            (F) a statement that certified financial
        
statements are available upon request; and
            (G) such additional information consistent with
        
this Act which may be required by the Office of Banks and Real Estate to assure full and fair disclosure to prospective purchasers.
    (b) The subdivider shall report all material changes with respect to subdivided lands registered for sale under this Act, and the Office of Banks and Real Estate may require that the public property report be amended to reflect such material change. In the event the subdivider wishes to update the public property report, the subdivider may do so upon proper application to the Office of Banks and Real Estate.
    (c) If the subdivider registers additional subdivided lands to be offered for sale, the subdivider may consolidate the subsequent registration with any earlier registration offering subdivided lands for sale under the same promotional plan, and the public property report shall be amended to include the additional subdivided lands so registered.
    (d) The Office of Banks and Real Estate shall, at the time the application is submitted or from time to time thereafter, require the subdivider to furnish financial assurances, in the form of a performance bond, a surety bond, or an irrevocable letter of credit in the amount and subject to terms and requirements approved by the Office of Banks and Real Estate, for the purpose of protecting purchasers of lots in the subdivision to ensure that the improvements will be constructed and maintained in the manner represented by the subdivider. The Office of Banks and Real Estate may accept evidence that such assurances have been furnished to a foreign state, or a county or municipality within such state, in fulfillment of this requirement.
(Source: P.A. 91‑338, eff. 12‑30‑99.)

    (765 ILCS 86/5‑15)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5‑15. Notice of filing; issuance of certificate; renewal.
    (a) Upon receipt of the application for registration in proper form, the Office of Banks and Real Estate shall issue a notice of filing to the applicant. Within 60 days from the date of the notice of filing, the Office of Banks and Real Estate shall enter an order registering the subdivided lands or rejecting the registration. If no order of rejection is entered within 60 days from the date of notice of filing, the land shall be deemed registered unless the applicant has consented in writing to a delay.
    (b) If the Office of Banks and Real Estate affirmatively determines, upon inquiry and examination, that the requirements of this Act have been met, it shall issue a certificate of registration registering the subdivided lands and shall approve the form of the public property report.
    (c) If the Office of Banks and Real Estate determines, upon inquiry and examination, that any of the requirements of this Act have not been met, it shall notify the applicant that the application for registration must be corrected in the particulars specified within 15 days. If the requirements are not met within the time allowed, the Office of Banks and Real Estate shall enter an order rejecting the registration, which shall include the findings of fact upon which the order is based. The order rejecting the registration shall not become effective for 20 days, during which time the applicant may petition for reconsideration and shall be entitled to a hearing.
    (d) The Office of Banks and Real Estate may adopt rules authorizing the subdivider or the subdivider's agent to file, as the subdivider's application for a certificate of registration in lieu of some or all of the requirements of Section 5‑10, (i) a copy of the statement of record filed with respect to the subdivision pursuant to the Federal Interstate Land Sales Full Disclosure Act if the statement complies with the requirements of that Act and the regulations pertinent to that Act or (ii) an acceptable certificate of registration from another jurisdiction in which the requirements for registration are substantially the same or exceed those provided in this Act. Notwithstanding the requirements of Section 5‑10, the Office of Banks and Real Estate may suspend or revoke any registration under this Section that includes any registration, property report, or similar disclosure documents accepted under this subsection if the registration, property report, or similar disclosure is suspended or revoked by the registering state or by the federal government.
    (e) A certificate of registration issued under this Section shall expire on June 30 following the date of issuance. In the absence of any reason or condition under Section 10‑35 that might warrant the suspension or revocation of a registration, a certificate shall be renewed upon payment of the required fee and documentation as provided by rule.
(Source: P.A. 91‑338, eff. 12‑30‑99.)

    (765 ILCS 86/5‑20)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5‑20. Fees.
    (a) The Office of Banks and Real Estate shall provide, by rule, for fees to be paid by applicants and registrants to cover the reasonable costs of the Office of Banks and Real Estate in administering and enforcing the provisions of this Act. The Office of Banks and Real Estate may also provide, by rule, for general fees to cover the reasonable expenses of carrying out other functions and responsibilities under this Act.
    (b) All fees collected under this Act shall be paid into the Real Estate License Administration Fund in the State treasury and appropriated to the Office of Banks and Real Estate for administration of this Act or any other Act administered by the Office of Banks and Real Estate and providing revenue to this fund.
    (c) Any person who delivers a check or other payment to the Office of Banks and Real Estate that is returned to the Office of Banks and Real Estate unpaid by the financial institution upon which it is drawn shall pay to the Office of Banks and Real Estate, in addition to the amount already owed to the Office of Banks and Real Estate, a fee of $50.
    (d) The fees imposed by this Section are in addition to any other disciplinary action provided under this Act for unlicensed practice or practice on a non‑renewed license.
    (e) The Office of Banks and Real Estate shall notify the person that payment of fees and fines shall be paid to the Office of Banks and Real Estate by certified check or money order within 30 calendar days of the notification. If, after the expiration of 30 days from the date of the notification, the person has failed to submit the necessary remittance, the Office of Banks and Real Estate shall automatically terminate the certificate of registration or deny the application, without hearing. If, after termination or denial, the person seeks a certificate of registration, he or she shall apply to the Office of Banks and Real Estate for restoration or issuance of the certificate of registration and pay all fees due the Office of Banks and Real Estate. The Commissioner may waive the fees due under this Section in individual cases where the Commissioner finds that the fees would be unreasonable or unnecessarily burdensome.
(Source: P.A. 91‑338, eff. 12‑30‑99.)

    (765 ILCS 86/5‑25)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 5‑25. Public property report. When a certificate of registration is granted by the Office of Banks and Real Estate, a copy of the public property report shall be given by the owner, subdivider, or agent to each prospective purchaser prior to the execution of any binding contract or agreement for the sale of any lot or parcel in a subdivision. A receipt, in duplicate, shall be taken from each purchaser to evidence compliance with this Section. Receipts taken for any published report shall be kept on file in possession of the owner, subdivider, or agent, subject to inspection by the Office of Banks and Real Estate for 3 years from the date the receipt is taken. The report shall not be used for advertising purposes unless the report is used in its entirety. No portion of the report shall be underscored, italicized, or printed in larger or heavier type than any other portion of the report, unless required by this Act. The report shall contain the following statement:
        If you received this report prior to signing a
    
contract or agreement, you may cancel your contract or agreement by giving notice to the seller any time before midnight of the seventh day following the signing of the contract or agreement.
        If you did not receive this report before you signed
    
a contract or agreement, you may cancel the contract or agreement any time within 2 years from the date of signing.
(Source: P.A. 91‑338, eff. 12‑30‑99.)

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