Illinois Legislative Bills
11 legislative bills tracked for real estate wholesalers & investors
Last synced: 4h ago
VEH CD-UNLICENSED DEALERS
Summary
- This bill amends the Illinois Vehicle Code to regulate unlicensed motor vehicle dealers, prohibiting them from displaying vehicles for sale on public or certain private properties
- It establishes an enforcement task force and increases penalties for violations, including the ability to issue cease and desist orders against unlicensed dealers
What This Means for Wholesalers
- While this bill primarily targets motor vehicle dealers, it highlights the importance of licensing and compliance in sales activities
- Real estate wholesalers in Illinois should be aware that similar regulations could be enforced in their industry, emphasizing the need for proper licensing and adherence to local laws
REAL ESTATE LICENSEE-DUTIES
Summary
- This bill amends the Real Estate License Act of 2000 to impose additional duties on real estate licensees representing sellers of residential properties
- It requires them to share property information with buyer's agents, respond to inquiries, show the property, and advertise it publicly unless the seller opts out
What This Means for Wholesalers
- The bill does not directly regulate wholesalers, as they typically do not hold a real estate license
- However, if wholesalers are involved in transactions where licensed agents are required to comply with these new duties, it may complicate their ability to assign contracts without proper disclosures or marketing restrictions
REAL ESTATE LICENSEE DUTIES
Summary
- This bill amends the Real Estate License Act of 2000 to require real estate licensees to publicly advertise or market properties they are authorized to sell or lease within one day of starting a brokerage agreement, unless the seller or landlord opts out
- It also mandates that sellers or landlords must sign a disclosure form to withhold their property from such advertising
What This Means for Wholesalers
- For wholesalers, this bill may complicate their ability to operate without a license, as it emphasizes the need for public marketing of properties
- If wholesalers are acting as licensees, they may need to ensure compliance with these advertising requirements or risk legal repercussions
WHOLESALE DRUG DISTRIBUTORS
Summary
- This bill amends the Wholesale Drug Distribution Licensing Act to define and regulate virtual wholesale distributors of prescription drugs, requiring them to be licensed and to comply with specific operational standards
- It prohibits these distributors from operating out of residential locations and sets forth various compliance and licensing requirements
What This Means for Wholesalers
- This bill does not directly impact real estate wholesalers, as it pertains specifically to the licensing and regulation of virtual wholesale distributors in the pharmaceutical industry
- Real estate wholesalers continue to operate under existing real estate laws and regulations, which are not addressed by this bill
WHOLESALE DRUG DISTRIBUTORS
Summary
- This bill amends the Wholesale Drug Distribution Licensing Act to establish licensing requirements for virtual wholesale distributors of prescription drugs
- It mandates that these distributors can only contract with licensed entities and sets forth various operational restrictions and compliance requirements
What This Means for Wholesalers
- This bill does not directly impact real estate wholesalers, as it pertains specifically to the distribution of prescription drugs and does not address real estate transactions or wholesaling practices
- Real estate wholesalers in Illinois remain unaffected by this legislation
INC TAX-COMBINED REPORTING
INC TAX-COMBINED REPORTING
Summary
- This bill amends the Illinois Income Tax Act to change how foreign business activities are treated for tax purposes, specifically regarding unitary business groups
- It also introduces provisions for joint and several liability among members of a combined reporting group
What This Means for Wholesalers
- This bill does not directly address real estate wholesaling practices or licensing requirements for wholesalers in Illinois
- Therefore, it is unlikely to have a significant impact on wholesalers' operations or legal standing in the state
Contract Assignment Transparency
Summary
- Proposes requiring all assignment contracts to be filed with the county recorder
- Would create a public database of wholesale transactions
- Aims to increase transparency in off-market real estate deals
What This Means for Wholesalers
- Would create a public database of wholesale transactions
- Aims to increase transparency in off-market real estate deals
Wholesaling Regulation Act
Summary
- Requires wholesalers to disclose their role as contract assignors to sellers
- Mandates written disclosure that wholesaler is not the end buyer
- Sellers get a 3-day right to cancel after receiving disclosure
- Violations can result in fines up to $10,000 per transaction
What This Means for Wholesalers
- Mandates written disclosure that wholesaler is not the end buyer
- Sellers get a 3-day right to cancel after receiving disclosure
- Violations can result in fines up to $10,000 per transaction
Investor Property Registration
Summary
- Requires investors owning 5+ properties to register with the state
- Annual reporting on property conditions and tenant complaints
- Fees range from $100-$500 per property for registration
What This Means for Wholesalers
- Annual reporting on property conditions and tenant complaints
- Fees range from $100-$500 per property for registration
Frequently Asked Questions — Illinois Real Estate Law
Common questions about wholesaling regulations and investor requirements in Illinois.
In 2024, Illinois enacted the Wholesaling Regulation Act (SB 1872) effective January 1, requiring wholesalers to disclose their role as contract assignors to sellers. Sellers must receive written disclosure that the wholesaler is not the end buyer and have a 3-day right to cancel the contract after this disclosure. Violations can result in fines up to $10,000 per transaction, aiming to protect sellers in off-market real estate deals.
Yes, HB 4067 – Contract Assignment Transparency is currently pending as of March 15, 2024. This bill would require all assignment contracts to be filed with the county recorder to create a public database of wholesale transactions. Its goal is to increase transparency around off-market real estate transactions, benefiting investors and sellers alike.
Under the enacted SB 1872 Wholesaling Regulation Act, wholesalers must clearly disclose their role as contract assignors to sellers in writing. Sellers must be informed that the wholesaler is not the final purchaser and have a 3-day right to cancel the contract after receiving this notice, enhancing transparency in wholesaling practices.
Yes. Illinois passed SB 2145 – Investor Property Registration, effective June 10, 2023. This law requires investors owning five or more residential properties to register with the state. Registered investors must report annually on property conditions and tenant complaints, paying a registration fee between $100 and $500 per property.
The combination of SB 1872 and the pending HB 4067 aims to increase transparency and protect parties involved in off-market wholesale real estate transactions. Sellers benefit from required disclosures and cancellation rights, while the public database proposed in HB 4067 would provide greater visibility into contract assignments.
Under the Wholesaling Regulation Act (SB 1872), wholesalers who fail to provide the required disclosure or misrepresent their role can face fines up to $10,000 per transaction. This underscores the state’s commitment to enforcing transparency and protecting sellers in real estate wholesaling.
Illinois requires real estate investors with five or more properties to register with the state, as mandated by SB 2145. These investors must submit annual reports detailing property conditions and tenant complaints and pay associated registration fees, helping to ensure better oversight of rental property management.
Real estate agents, wholesalers, and investors should regularly consult state government resources and legal advisories for the latest updates on Illinois real estate laws, as pending legislation like HB 4067 could significantly change transparency and compliance requirements in the near future.
Investors and wholesalers should prioritize transparency by fully disclosing all contract assignments and ensuring compliance with registration and reporting laws. Staying informed about both enacted and pending laws helps mitigate legal risks and build trust with sellers and tenants in the Illinois market.
Illinois’ recent laws, particularly SB 1872’s mandatory disclosure and seller cancellation rights, place it among states proactively regulating wholesaling for consumer protection. The proposed transparency measures and investor registration also reflect increasing regulatory scrutiny compared to states with less formal wholesaling oversight.
Not legal advice. Consult a licensed real estate attorney in Illinois for guidance on compliance.