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Can you summarize 765 ILCS 940?
PROPERTY > Mortgage Rescue Fraud Act.
Short Summary
The Mortgage Rescue Fraud Act, governed by the Illinois Compiled Statutes, regulates the activities of distressed property consultants and distressed property purchasers. It defines ‘distressed property’ and ‘distressed property consultant’ and exempts certain entities and individuals from the definition of a distressed property consultant. The Act requires distressed property consultant contracts to be in writing and fully disclose the nature of the consultant’s services and compensation terms. It also mandates the inclusion of a notice informing property owners of the consultant’s limitations and the owner’s right to cancel the transaction. The Act further governs the rescission of distressed property consultant contracts, granting owners the right to cancel until the consultant has fully performed the contracted services. The Act also establishes requirements for distressed property conveyance contracts, including the form, content, and cancellation rights. It addresses the cancellation of distressed property conveyance contracts, granting owners the right to cancel within five business days of signing a compliant contract. The Act prohibits waivers of certain provisions and establishes criminal penalties for intentional violations. It also regulates distressed property consultant compensation, setting limits based on the type of transaction. The Act does not specify the penalties for non-compliance or violation of its provisions. Overall, the Mortgage Rescue Fraud Act aims to protect property owners from fraudulent practices in distressed property transactions.
Whom does it apply to?
The Act applies to individuals, partnerships, corporations, associations, or other entities.
What does it govern?
The Mortgage Rescue Fraud Act governs the activities of distressed property consultants and distressed property purchasers.
What are exemptions?
Authorized agents, government-approved mortgagees, licensed attorneys, nonprofit agencies, and specific licensees are exempt from the definition of a distressed property consultant.
What are the Penalties?
The document does not specify the penalties for non-compliance or violation of the Act.
Jurisdiction
Illinois