Chapter 3 (pt.2) Flashcards
Before running a credit check, the landlord must obtain…
Written permission from Applicant
This federal law is one of the most significant federal laws which regards credit reports and other consumer reports. This is called the…
Fair Credit Reporting Act.
Money that is taken from the tenant/lessee at the time the lease is created in order to protect the landlord/lessor, in the event the tenant damages the property or does not pay all the rent before vacating the premises.
Security Deposit
Security Deposits are regulated by both…
State and Local laws in Illinois.
This type of account is intentionally used to separate security deposits from the funds of sponsoring brokers to avoid commingling.
Special Account, Escrow Account or Trust Account
The act of a sponsoring broker who placed his/her own funds in the same account as the tenants/owners funds is called…
Commingling
Whether a lease will terminate by voluntary or involuntary termination is stated in the…
Termination Clause
This type of termination is automatic upon expiration of its term or through surrender and acceptance at any time during its term.
Voluntary Termination
This indicates the mutual agreement of parties to terminate the lease…
Surrender and Acceptance
This type of termination can occur after there is a breach of a condition in a contract through actual eviction or constructive eviction.
Involuntary Termination
This occurs when a lessor initiates court action to have the tenant removed from the premises.
Actual Eviction
What action is required prior to a lessor commencing the eviction process, in Illinois?
Written notice must be given to through registered/certified mail with return receipt, posted on premises or delivered in person to the lessee or anyone 13 years or older who resides at the premises.
Illinois requires how many days notice prior to court action taking place concerning an eviction?
5 day notice or 10 day notice
The suit that a lessor can bring while pursuing eviction after required notice period has ended, is called…
Forcible Entry and Detainer Action
This type of eviction may result if a lessor allows a property to fall into a state of disrepair to the extent that it becomes uninhabitable.
Constructive Eviction
A tenant’s argument claiming the landlord’s actions amount to the equivalent of an eviction is called…
Constructive Eviction Defense
The act of the Gov’t exercising authority in acquiring property from a private owner against the owner’s wishes, is called..
Eminent Domain
Court action taken by the Gov’t to seize property under eminent domain is called a…
Condemnation Action
This nuisance, is any place where controlled substances are unlawfully sold, possessed, served, delivered, manufactured, cultivated, given away of used more than once in one year. This is found under which act?
Controlled Substance and Cannabis Nuisance Act.
When a drug house is identified, the law requires that authorities send notice to the owner. How many days does the owner have to appear at the state attorney’s office to arrange to take action?
14 days from the date of mailing or 7 days from personal service.
What happens if the owner does not comply or fails to appear within designated time?
The law allows the state to file a civil suit to prevent owner from using the property for up to a year. The state can also remove and sell all moveable property/fixtures that contributed to drug activity.
EPA stands for…
Environmental Protection Agency
HUD stands for…
The Dept. of Housing and Urban Development.
Sellers and Landlords are required by law to give their respective buyers and tenants a hazard explanation pamphlet concerning lead based paint, if the house was built before…
1978 (when lead-based paint was widely used)
What year was the Residential Lead-Based Paint Hazard Reduction Act passed?
1992
What are the requirements Prior to the Ratification of a Contract for Sale/Lease? (in consideration of Lead Based- Paint) (4)
1) disclosure of known lead issues w/ provided reports
2) Provision of the “Protect Your Family” Pamphlet
3) 10 Day - period for HOMEBUYERS to conduct inspection at their own expense 4) If offer is made before disclosing, provide disclosure before acceptance and offer time to amend
What does the rule (regarding lead-based paint) NOT require?
1) the rule does not require testing, removal or abatement of lead-based paint.
2) the rule does not invalidate leasing and sales contracts
What kinds of housing are NOT covered by the law (regarding lead-based paint)? (7)
1) Housing built after 1977
2) Zero-Bedroom units, such as efficiencies, lofts & dormitories
3) Leases for less than 100 days (vacation houses, short-term leases)
4) Housing for the elderly (unless children live there)
5) Housing for Disabled (unless w/ children)
6) Rental Housing that has been inspected and found free of lead-based paint
7) Houses sold due to foreclosure
A broker representing a SELLER should… (6)
1) Provide pamphlet to buyer
2) Allow 10 Days to inspect/test for lead if desired
3) Disclose known lead issues & provide reports
4) Include warning language as attachment to contract
5) Obtain signed statement(s) to verify completion of requirements
6) Retain signed statements for 3 years
Licensees, representing a LANDLORD renting a dwelling should… (5)
1) Provide Pamphlet to renter
2) Advise L-lord to disclose known lead issues and provide reports
3) Include warning language as an attachment to lease
4) Have Landlord complete and sign statements verifying completion of all requirements
5) Advise L-Lord to retain for 3yrs
Must a Licensee advise L-Lord to give pamphlets to ALL existing tenants?
No, but the pamphlet must be provided when the lease is renewed, as is the case for new tenants.
What about Non English speaking Buyers/Renters?
The disclosure must be in the same language as contract
Must a Licensee Advise Clients to Check their house for lead before they represent them?
No, but they do have to give buyers a 10-day opportunity to have a test done if desired.
Must a Licensee Advise Clients to correct any lead hazards that are found?
No, nothing in law requires an owner to remove or correct lead paint hazards.
Agents must ensure that Sellers/Landlords that…
1) Sellers and Landlords are aware of their obligations
2) Sellers/Landlords disclose the proper info to buyers/tenants
3) Sellers/Landlords give buyers 10-days to conduct inspection
4) Lease/Sales Contracts include proper disclosure language and proper signatures
Do Buyers have to get a lead test when buying a House?
No, this law only gives you this right if you desire. However you (the buyer) must pay for it, or negotiate with seller who will pay for it.
Can the 10-day period be waived?
Yes, the buyer and seller can choose any time they want or to waive the opportunity altogether, as long as it is by mutual consent.
Does a TENANT have the right to test for lead?
No, the inspection period is limited to sales transactions, however, nothing in the law prevents the renter from negotiating an inspection or risk assessment with the landlord or lessor before rental.
What happens if sellers, lessors or agents fail to comply with the law?
1) They can be sued for 3x times the amount of damages
2) They may be subject to civil and criminal penalties
What is Radon?
a colorless, odorless, radioactive gas that comes from uranium in soil.
Radon is one of the leading causes of…
Lung Cancer
The only way to know the level of radon is to…
test for it…
The Illinois Radon Awareness Act does not require…
Residential Landlords to test for radon. However, if when they do test for it, they find that there is the presence of radon, they must provide disclosure in writing.
Property Managers through agreement with property owners, can…
1) Show property to tenants
2) Negotiate Leases
3) Collect rents
All three of these activities require a real estate license
If individuals in IL manage a property they DO NOT own, what is required?
A License
What are the EXCEPTIONS to the rule requiring a license?
1) The individual who performs any tasks on behalf of either the owner or property’s licensed manager, lives at property… this is also called a “resident manager”
2) An individual lives offsite and works for owner as a “regular employee” (anyone who is considered an employee for tax purposes and works at least 20hrs)
Property Managers are expected to… (3)
Supervise maintenance, protect physical integrity of property and assist tenants on owner’s behalf
The property manager is expected to…
avoid self interest & best serve the owner
