Major Alert: CRLTO 5-12-080 (security deposit) judgments not dischargeable by landlords in bankruptcy

security deposit judgment not dischargeable in bankruptcyA new case published on October 14, 2011 by the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division indicates that a judgment obtained by a tenant against a landlord for various violations of Section 5-12-080 of the Chicago Residential Landlord Tenant Ordinance is not dischargeable in bankruptcy as it constitutes “defalcation while acting in a fiduciary” under 11 U.S.C. Section 523(a)(4).  The case is Kennedy v. Frempong and was issued within the broader federal Bankruptcy case: In re Maxwell Kofi Frempong as adversary case 10 A 011773.

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Cook County Sheriff eviction enforcement procedures can be confusing and difficult

Cook County Sheriff Tom Dart’s distaste for the enforcement of possession orders is well documented when it comes to foreclosure-related evictions.  Whether intentional or not, the Sheriff’s office has instituted a number of policies that make life difficult for landlords seeking the enforcement of their eviction orders.  I have reported here that the smallest “scratch out” on an Order for Possession, unless accompanied by a judge’s initials, will result in the Sheriff’s refusal to enforce the eviction order.

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Oak Park landlords beware

crime free addendumOak Park, Illinois landlords need to be aware that the Village has its own landlord tenant regulations.  Although not at all as comprehensive as the CRLTO, the Oak Park Village Code imposes a number of obligations and requirements on landlords.  Let’s begin today with a look at Section 12-2-11 which mandates a number of lease provisions to be included in any lease or lease application. 

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But there is no lease!

I was recently contacted by a property owner who inquired about removing a tenant who is renting a room in the property owner’s house.  I explained to the property owner that the procedures of the Forcible Entry and Detainer Act must be satisfied to remove the tenant.

The property owner then informed me that ‘there is no lease’ and that the tenant has to leave as ‘it is my house’.  Many landlords feel this way.

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Sometimes what happens in eviction court doesn’t make sense

One of my associates appeared in court in one of our forcible entry cases.  Our client, being well based in reality, understood that the tenant was unlikely to ever have the resources to repay the landlord and really just wanted to regain possession of the property.  The tenant was genuinely sorry to be behind in rent and was willing to leave but needed some extra time to do so.  What could be done?

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Can’t find your tenant? Maybe they are in Jail

All sorts of difficulties can arise when a landlord cannot find a tenant. One day, I will write on the difficulties of abandonment of property the many issues it creates. In short though, abandonment issues, especially in CRLTO covered tenancies, require more caution than the plain code of the CRLTO might suggest and landlords who mistakenly take back a property that they deem abandoned can find themselves in a real legal mess of wrongful eviction claims. When a tenant can’t be found, a myriad of notice and service issues must be analyzed. One possible explanation for a tenant’s absence is that the tenant might be in jail.  Here are a couple of links where landlords can search to see if their tenants are in jail.

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First District Cook County Illinois eviction “worse case scenario” timeline

Daley Center Cook County Courthouse (c) Magnone 2011In August, I wrote about the “best case scenario” timeline for a first district Cook County eviction.  This post is about the opposite side of the process or what I call the “worse case scenario”.  That’s not a typo.  I mean “worse”, not “worst”.  I don’t think I have seen the system at its worst yet.  The eviction practice has taught me that I have not seen close to everything.

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Get the heat on!

turn up the thermostat for tenantsIt is fitting that today is a cold day in Chicago.  Many Chicago lessors are caught unaware of their obligation to supply a minimum level of heat to their rental units.  Today, September 15, is the first day of 2011 that heat requirements are in effect for lessors in the City of Chicago.

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Illinois Residential Real Property Disclosure and Leases?

When most Illinois property owners sell real estate, there is a law, the Illinois Residential Real Property Disclosure Act, that requires that they provide a copy of a completed Illinois Residential Real Property Disclosure to all prospective buyers.  The act imposes certain liability on the Seller for certain errors, inaccuracies, or omissions.  What does that have to do with Illinois leases?  A lease transaction, after all, is not a sale.

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