5-14-020 Definitions.

For purposes of this chapter, the following definitions apply:

“Bona fide third-party purchaser” means any person who, through an arms length transactions, purchases, or is otherwise transferred title to, a foreclosed rental property from an owner. A “bona-fide purchaser” shall not include any person who had a mortgage lien on the foreclosed rental property during the foreclosure procedure. A mortgagee shall also include the mortgagee’s subsidiary, parent, trustee, nominee, agent or assignee.

“Commissioner” means the commissioner of buildings.

“Cooperative building” means a building or buildings and the tract, lot, or parcel on which the building or buildings are located and fee title to the land and building or buildings is owned by a corporation or other legal entity in which the shareholders or other co-owners each also have a long-term proprietary lease or other long-term arrangement of exclusive possession for a specific unit of occupancy space located within the same building or buildings.

“Dwelling unit,” “rental agreement,” “rent” and “tenant” have the meaning ascribed to those terms in Section 5-12-030.

“Foreclosed rental property” means: (1) (i) a building containing one or more dwelling units that used as rental units, including a single family house; or (ii) a dwelling unit that is subject to either the Condominium Property Act or the Common Interest Community Association Act that is used as a rental unit; (2) for which legal and equitable interests in the building or dwelling unit were terminated by a foreclosure action pursuant to the the Illinois Mortgage Foreclosure Law; and (3) one or more of the rental units are occupied on the date a person becomes the owner.

A “foreclosed rental property” does not include a dwelling unit in a cooperative building.

“Owner” means any person who, alone or jointly or severally with others, is: (1) pursuant to a judicial sale of a foreclosed rental property, the purchaser of the foreclosed rental property after the sale has been confirmed by the court and any special right of redemption has expired; or (2) a mortgagee which has accepted a deed in lieu of foreclosure or consent foreclosure on a foreclosed rental property. “Owner” includes the owner and his agent for the purpose of managing, controlling or collecting rents.

“Principal residence” means a person’s primary or chief residence that the tenant actually occupies on a regular basis.

“Qualified tenant” means a person who: (1) is a tenant in a foreclosed rental property on the day that a person becomes the owner of that property; and (2) has a bona fie rental agreement to occupy the rental unit as the tenant’s principal residence. For purposes of this definition:

(1) a lease shall be considered bona fide only if: (i) the mortgagor or the child, spouse, or parent of the mortgagor is not the tenant; (ii) the lease was a result of an arms-length transaction; (iii) the lease requires receipt of rent that is not substantially less than fair market rent for the property, or the rental unit’s rent is reduced or subsidized due to a government subsidy.

(2) “Mortgagor” means: (i) the person whose interest in the real estate was the subject of a mortgage and that person's legal and equitable interests in the real estate was terminated by a foreclosure pursuant to the Mortgage Foreclosure Law, 735 ILCS 5/15-1101; or (ii) any person claiming any legal or equitable interest in the real estate through a mortgagor as a successor. Where a mortgage is executed by a trustee of a land trust, the mortgagor is the trustee and not the beneficiary or beneficiaries.

“Rental unit” means any dwelling unit which is held out for rent to tenants.

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