Erwin Law Answers
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What recent court ruling favored Chicago landlords?
A Rare Win for Landlords. The Appellate Court of Illinois (First District) recently issued a ruling which addressed an issue that has long been of major concern to many attorneys representing landlords. And fortunately, the ruling affirmed a lower court ruling in favor of landlords. The issue at stake was whether or not a… Read more »
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What is Syndication?
Simply put, a syndicated real estate deal pairs a sponsor – the ‘syndicator’ – with a group of investors who have pooled their money for the sole purpose of buying real estate. The investors come to the table with money, while the sponsor comes to the table with the project (proposed land, building, concept etc.),… Read more »
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Are auto-renewing contracts legal?
An automatic renewal – or evergreen – clause is a provision which automatically renews a contract on its same terms. These clauses are commonplace, most often found in subscription-based service agreements – cloud storage … data plans … insurance … fitness club memberships, and the like. Unfortunately, and particularly within “old school” industries, these… Read more »
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Benefits to Separating Your Business Real Estate from Your Business
If you’re operating your business out of a building or on a piece of property that you also own, you may consider separating the two into individual entities. Here’s why: For starters, let’s say your business is owned by the ‘Acme Corporation’ … and you create a second entity, ‘Wily Coyote, LLC,’ to hold… Read more »
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Should Your Association Update Its Declarations?
If your Condominium Association is considering whether or not it’s time to update its Declarations and Bylaws, you should be aware of some recent updates in Illinois law. Associations interested in preventing the rental of units on short-term platforms such as Airbnb and VRBO should review the Declaration language regarding short-term rentals. Most will refer… Read more »
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Not All Residential Real Estate is the Same
The Multifamily real estate market remains HOT. And with financing widely available, interest rates relatively low, rents at all-time highs and rental demand at peak levels and rising, it’s easy to see why more and more investors are being drawn to this exciting segment of the market. While multifamily properties can be great investments, there… Read more »
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What is a Revocable Living Trust?
A revocable living trust is an entity to which individuals may transfer ownership of certain real or personal property, like a home, a precious family heirloom, an insurance policy or company stock. There are many benefits to creating a revocable living trust. For starters, it gives an individual the ability to establish an asset… Read more »
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What is an Executor … And Why Do I Need One?
An Executor is an individual selected by you in your Will to administer and settle your estate. The role of the Executor is a crucial one in the probate process, and, therefore, it is vastly important that you established one in your Will. When selecting your Executor, be sure it’s someone you trust – perhaps… Read more »
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What Should I Know About Earnest Money?
If it looks like your client is headed toward litigation over earnest money from a failed deal, understanding the principles of earnest money litigation is key to obtaining the best outcome. When it comes to earnest money, there are two major common misconceptions. Some people think that, if one party defaults, the other party… Read more »
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What are Best Practices for Cook County Tenant Application Process?
In January of 2020, Cook County enacted an amendment to its Fair Housing Ordinance, referred to as the Just Housing Ordinance (JHO), which radically changed how housing providers in Cook County are required to approach their tenant application process. Since then, the world health crisis drew attention away from that development. But our firm,… Read more »
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How will the New Eviction Ordinances Affect You?
While at a standstill, evictions in Chicago have become overwhelmingly complicated. And with these new ordinances and, presumably, more changes ahead, it is essential to stay focused and informed. For more than 25 years, Erwin Law has been helping landlords stay up to date, avoid costly mistakes, delays and penalties, and protect their investments. For thoughtful guidance and counsel during these tumultuous times, call us at 773-525-0153.
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What’s the difference between Wills and Trusts?
Planning how best to disburse your assets and responsibilities upon your passing can be complicated. With myriad government rules, regulations and nuances, it’s helpful to understand the basics before you begin. Upon death, all your rights and obligations instantly transfer to a legal entity referred to as an ‘Estate.’ Estate Planning, then, involves deciding… Read more »
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Is Mortgage Forbearance A Good Option For Me?
Post-Shelter-In-Place: A Primer For Landlords – Part 4 in a Four-Part Series The ill-effects of the Coronavirus pandemic and subsequent Shelter-in-Place orders are becoming more and more apparent as they continue to trickle further down through our economy. Tenants unable to pay their rent are creating financial hardships for landlords working to pay their… Read more »
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What is the best way to work through tenant defaults?
After Shelter-In-Place: A Primer For Landlords – Part Three in a Four-Part Series Shelter-in-Place orders, while certainly prudent, have created financial difficulties for many. And while recent data has shown that tenants have continued to pay their rent at a higher-than-expected rate, forecasts tell us that the worst has yet to come, and that requests… Read more »
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What are best practices when bringing tenants back to your buildings?
We don’t know exactly when the Illinois Shelter-In-Place order will be lifted, but we can, and should, start preparing for it. And while the laws and situations are still changing, here are recommended best practices for reopening your buildings to tenants.
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Safety AND privacy – How do you find the proper balance?
Post-Shelter-In-Place: A Primer For Landlords – Part One in a Four-Part Series We don’t know exactly when the Illinois Shelter-In-Place order will be lifted, but we can, and should, start preparing for it. And while the laws and situations are still changing, here are the most current answers to the most frequently asked questions:… Read more »
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Does government-mandated rent relief require just compensation under the takings clause?
In the residential arena in particular, one common theme of debate has been the impassioned (and sometimes menacing) demands for rent relief in the form of “rent strikes,” and full-on rent forgiveness by landlords. Municipalities have, in varying forms, discussed, considered, even proposed laws requiring that landlords either forgive or defer rent collection. Not surprisingly, landlords have resisted – mainly citing their own mortgage, labor, tax, insurance and other operational costs.
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How can I control real estate showings in the shadow of COVID-19?
Over the course of the past week, we have fielded dozens of requests for clarification on how property owners and homeowner associations can protect themselves from exposure to COVID-19 in the context of real estate showings. Because of the critical importance that social distancing plays in avoiding catastrophic levels of infected citizens overwhelming our medical… Read more »
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How can I protect my Development project from COVID-19?
The health and economic impacts of the Coronavirus epidemic will assuredly touch virtually every corner of the World before it is brought under control. And while the virus has many fearing for their health, it is casting a much longer and darker shadow over many sectors of our national and global economies. As voluntary… Read more »
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How will legalized pot affect property owners?
Important to owners, condominium associations, property managers and tenants, the law includes an amendment to the Illinois Condominium Property Act which allows condominium associations to place certain restrictions on the smoking of marijuana, both in common elements and in private units.
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What steps can be taken in a homeowner association if one owner is interfering with the rights of another owner?
Conflicts between owners are inherent in shared community living. And whether misconduct is a result of an owner’s natural personality or a result of medical conditions affecting that owner, the Association and its Board cannot simply turn a blind eye. As there may be a number of corollary issues to carefully consider — rights… Read more »
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I live in a condominium and the smoke from my neighbors’ cigarettes wafts into my unit through my open balcony window. Is there anything I can do?
Conflicts between smokers and non-smokers in shared living communities is a common source of friction. Just as with noise complaints, resolution of these disputes often must be dealt with on a case-by-case basis. Unless your association amends its Declarations to ban smoking completely, your neighbor is in her right to smoke within the confines of her unit. That does not mean, however, that she may necessarily do so to the detriment of her neighbors.
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Can a Homeowner Association equalize the percentage of each owner’s interest?
Whenever a homeowner or condominium association is formed by a developer, it is established by virtue of a Declaration which is recorded with the County Recorder. That Declaration includes a schedule of all of the Units in the association and their corollary ownership percentage. These percentages are the common element ownership percentages allocated to… Read more »
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Can a condo board establish a rental cap in the building’s rules and regulations, or is a by-law update required?
In Illinois, one of the seminal cases regarding the implementation of leasing restrictions is Apple II Condominium Association v. Worth Bank & Trust Co. In that case, the court held that associations may prohibit leasing by either Board action or ownership approval, depending on the terms of their Declaration.
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What can I do, as an agent, to provide my clients with additional value AFTER they’ve closed on their sale of purchase?
Buying or selling the right property — and at the right price – always feels like a big win, for everyone involved. And it is. So, oftentimes, real estate agents will finish one deal and move quickly on to the next. But the most successful agents understand that every closing opens up a whole host… Read more »
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Must surplus funds from a completed homeowner association project be refunded to Owners or can it be used in other ways?
When a homeowner association has to undertake large capital repair projects, it will often pay for these projects by way of charging special assessments to the owners. Previously, when there were surpluses collected for those projects, Illinois law prohibited refunds to the owners, past or present. However, as of January 1, 2018, absent express directives… Read more »
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Is an LLC the best structure for our real estate business?
Real estate investors and developers are often well versed in assessing properties, analyzing cap rates, zoning issues, property tax concerns and other matters related to real estate due diligence. Yet they often overlook, or give little importance to, the structure of their business and the framework they establish for the ownership of the properties they… Read more »
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What are the critical components of a valid mechanics lien claim?
A contractor who doesn’t get paid for doing work on someone’s home or real estate property has a useful method of enforcing his or her collection rights – the filing and prosecuting of a mechanics lien against that real estate property. Mechanics liens are products of state law and, in Illinois, are authorized and governed… Read more »
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How can I benefit from the new tax laws?
The recently-enacted tax law changes are substantial, and are already greatly affecting all areas of industry, real estate included.
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What do I need to know about international buyers and sellers?
Whether foreign citizens are buying and selling pied-a-terres, vacation or second, even third homes here in the States, they are, quite clearly, a highly valuable target segment in the luxury home market.
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If I file for Chapter 13 Bankruptcy, do I have to repay all my debts?
To the unfamiliar, a Chapter 13 plan is a cumbersome document that could negatively impact one’s rights. A Chapter 13 plan must treat all of a debtor’s creditors, both secured and unsecured. Treatment, however, does not necessarily mean full payment.
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How can I avoid commission conflicts?
Some commission structures are simple and straightforward. Others, such as continuing commissions on a commercial lease, can be more complicated. But one thing they all have in common – they must be properly written and executed in order to be enforceable.
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What’s the best structure for our business?
Real estate investors and developers are often well versed in assessing properties, analyzing cap rates, zoning issues, property tax concerns and other matters related to real estate due diligence. Yet they often overlook, or give little importance to, the structure of their business and the framework they establish for the ownership of the properties they… Read more »
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The ICPA in Practice: Has Section 22.1 Lost its Meaning?
We reviewed the matter, and are featured in the ‘Legal Updates’ section of the CAI webpage: http://www.cai-illinois.org/association-disclosures-section-22-1-illinois-condominium-property-act/
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Developer Turnover To The Association in New Developments:
How to affect a smooth transition.
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Erwin News
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Another big win!
Erwin Law, led by senior litigation partner Dan Hawkins, prevailed in a hard fought matter in Cook County’s Law Division. A creditor, represented by a large, well respected Chicago firm. sought a personal judgment against our clients. The creditor had credit bid the full amount of its judgment at a judicial sale, which should have… Read more »
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The New Corporate Transparency Act: What YOU Need to Know
The US government recently passed a new law aimed at reducing dark money activities such as the financing of terrorist organizations and money laundering. This legislation, known as the Corporate Transparency Act (“CTA”) will be administered by the Financial Crimes Enforcement Network, otherwise known to most as FinCEN. It takes effect January 1, 2024. This… Read more »
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Words Matter – The Pitfalls of Using “Please Advise” in Professional Communication
When navigating the seas of professional writing, it’s crucial to be mindful of phrasing. A commonly-used phrase, “please advise,” can sometimes, inadvertently, lead to choppy waters. Here’s why you may want to reconsider using it in your professional emails, legal documents, or other correspondences. The Ambiguity of the Ask “Please advise” is a blanket… Read more »
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Cheers to 30 Years!
While most of the communications you receive from Erwin Law are informational or educational in nature, this one’s a bit more personal… 2022 marks Erwin Law’s 30th Anniversary. And I find myself feeling overwhelmed with gratitude. I’ve been blessed with a wildly supportive, very understanding family that has made many sacrifices to ensure the Firm’s success …… Read more »
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Evictions: Important Housing Provider Update
Housing providers in Chicago should be aware of a pilot program being initiated by the US Department of Housing in the first half of 2022. The “Right to Counsel” program is designed to ensure low-income tenants will be provided with legal counsel in eviction cases and is being funded, in part, with an $8 million… Read more »
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Illinois Eviction Moratorium Ending and The Next Steps for Housing Providers (Landlords)
Some form of eviction moratorium has been in place for the last 18 months in Illinois. As one of the last remaining states with an eviction moratorium in place, the Illinois Moratorium expired as of October 4, 2021.