Legislative Committee
The Legislative Committee is dedicated to advancing ILTA's effectiveness in legislative matters that impact the title industry. The committee reviews pending and existing legislation, researches and drafts proposed bills or amendments, and develops position papers to guide the Association's advocacy efforts. Working closely with ILTA's lobbyist, the committee also builds and maintains strong relationships with state legislators to ensure the interests of the title industry are effectively represented.
The Legislative Committee meets at the Quarterly Committee meetings in January, April and October. For more information or to register for an upcoming meeting, please see our Calendar of Upcoming Events.
If you'd like to be added to the roster for this committee, please email Stacy McGuire. Roster members receive committee-related updates, communications, and calendar invites to the quarterly committee meetings.
2025 Bills
SB1443 – ILTA’s Response to Equitybuild decision –
Since 1903, it has been the law in Illinois that payment of a debt extinguishes that debt and renders any lien securing repayment of the debt unenforceable. In the last 121 years, neither the Illinois Supreme Court, nor any Illinois Appellate Court, has expressly modified or otherwise taken issue with this long-standing common law rule.
However, in 2024, the 7th Circuit Court of Appeals, a federal court, in its decision in S.E.C v. Equitybuild, Inc. went against over a century of established Illinois law and decided that the IL Mortgage Act, 765 ILCS §§ 905/1 et seq. (the “Act”), abrogated and struck down the IL common law, and stated that no mortgage is satisfied until a release of the mortgage is recorded.
ILTA drafted language to address the federal Appellate Court’s decision.
Section 5. The Mortgage Act is amended by adding Section
17 as follows:
(765 ILCS 905/17 new)
Sec. 17. Notwithstanding any other provisions of this Act:
(1) The Act does not abrogate the Illinois common law
that the payment in full of a debt secured by a mortgage
extinguishes the lien.
(2) Payment in full of a debt secured by a mortgage
pursuant to a payoff statement, as defined in Section 5 of
the Mortgage Certificate of Release Act, issued by or on
behalf of the holder of the indebtedness extinguishes the
lien of the mortgage.
This created a new section to the Mortgage Act. Sub (a) addressed the bad decision in Equitybuild. Sub (b) is language regarding the title industry’s ability to rely on a payoff.
Signed by Governor August 1, 2025, Public Act 104-0101 with an effective date of August 1, 2025.
SB1523 - Fraud Referral and Review Process, Property Fraud Alert System, Private Right of Action –
This statue has three parts:
- Requires that every recorder shall establish a fraud referral and review process. This expands the fraud referral and review process that has been in Cook County to the entire state. (See page 1 and 2 of statute). ILTA’s lobbyist reached out to the Clerks and Recorders Association but did not hear back.
- Every County shall establish and maintain a property fraud alert system. (See page 9.)
- The legislation also includes a private right of action. Once ILTA became aware of the private right of action ILTA’s lobbyist reached out to the bill sponsor to have the word “knowingly” added to the language. (See page 13.)
(55 ILCS 5/3-5010.11 new)
Sec. 3-5010.11. Private right of action. Any person who knowingly files or causes to be filed a deed or instrument that is recorded in the grantor's index or the grantee's index that is fraudulent, unlawfully altered, or intended to unlawfully cloud or transfer the title of any real property may be held liable to the rightful property owner affected in an action brought in a court of competent jurisdiction for such legal or equitable relief as may be appropriate to enforce this Code.
This was signed by the Governor on August 15, 2025. It is now Public Act 104-0382 with an effective date of January 1, 2026
HB2755, SA 2 – Cook County Tax Sale Delay – Public Act 104-0006 effective June16, 2025
Delays the Cook County Tax Sale to March of 2026 as response to Tyler Case. Illinois is only state where tax deed system is still unconstitutional.
HB0028 – Illinois Receivership Act
Creates the Illinois Receivership Act – Signed by Governor on August 1, 2025. Public Act 104-0034. Effective date January 1, 2026Sent to Governor June 20, 2025
Generally, the legislation creates a process in which a person is appointed by the court as the court's agent under the court's direction to take possession of, manage and, if authorized by the Act or court order, transfer, sell, lease, or otherwise dispose of receivership property. Provides criteria for a court to provide notice and opportunity for a hearing as appropriate before the court can issue an order under the Act. Applies to real property and any personal property related to or used in operating the real property, personal property and fixtures, and other business assets such as corporations, limited liability companies and trusts among other things. Provides that this Act does not apply to (i) an interest in real property improved by one to six dwelling units with some exceptions; (ii) a receiver that is a governmental unit or an individual acting in an official capacity on behalf of the governmental unit unless the unit elects for this Act to apply; and (iii) a receiver appointed under the Illinois Mortgage Foreclosure Law. Provides for the powers and duties of a receiver, disqualification of a receiver, the status of a receiver as lien holder, duties of an owner, powers of the court in managing a receivership, and defenses and Immunities of a receiver.
Language was added in House amendment 1 that provided: “This Act does not apply to residential real estate as defined under Section 15-1219 of the Illinois Mortgage Foreclosure Law” therefore the primarily impact will be to commercial real estate.
SB2648 – Transfer of Regulation of Title Insurance to the Department of Insurance
Proposal by one underwriter to move regulation of the title insurance industry and the Illinois Anti-Predatory Lending Database from the Illinois Department of Financial and Professional Regulation to Illinois Department of Insurance. Discussions with stakeholders are anticipated to take place this fall.
Redaction Bill HB4084 filed July 9, 2025 –
Would expand the current Judicial Privacy Act to include Government Officials (i.e., state legislature and the executive branch) would become the Government Official Privacy Act. We are working with the bill sponsor on language that will allow the title industry to view protected/unredacted documents which involved the protected classes of government officials. Discussions are ongoing.
Other
Chicago Northwest Side Preservation Ordinance Update – TOPA (Tenant Opportunity to Purchase Act)
Became effective March 1, 2025. Applicable to a limited number of zip codes on the Northwest side of the city of Chicago. Creates a right of first refusal for tenants or a specifically created tenant association for purchase a rental property. Also creates a private right of action for failure of the seller to comply with the requirements of the ordinance. Continuing discussion with city of Chicago to make the process and reliance on the City’s statements that the seller has met all ordinance requirements.