Title Insurance

PA 95-570, HB 1319, Title Insurance Act, Effective Date: August 31, 2007, Statutes Amended: 215 ILCS 155, Sections 3 and 18.1

Illinois Public Act 95-570 originated as Illinois House Bill 1319. It amends the Title Insurance Act, 215 ILCS 155, by adding a new section declaring the right of certain parties who contract for the sale of residential real property to choose their title insurance provider. The act also defines "residential real property."

First, Public Act 95-570 adds Section 18.1 to the Title Insurance Act. This new section empowers parties who contract for the sale of residential real property and are required to pay for title insurance. It provides that no person or company that produces title business may, as a condition of providing any type of services or making a loan, require such parties to use title services from any specific title company.

Second, the act adds a definition of "residential real property" to Section 3 of the Title Insurance Act, which previously contained no definition of the term. It defines "residential real property" as buildings containing between one and four residential units. The definition also includes condominiums that contain at least one unit that a purchaser, borrower, or beneficiary of a trust when the trustee is a purchaser or borrower who occupies or intends to occupy as a residence.

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