Recent bills signed into law affecting the real estate industry

Writen by Illinois REALTORS® Staff |

Published: September 3, 2025

Your Illinois REALTORS® Governmental Affairs team supported, provided amendments and monitored to ensure no changes to several key bills signed into law by Gov. JB Pritzker that are of interest to those in the real estate industry.

Anti-squatter bill signed into law

Gov. JB Pritzker signed Senate Bill 1563 into law, making it easier to remove squatters who move in and try to occupy someone else's home.

SB 1563 amends the Code of Civil Procedure to tackle the growing squatter issue in Illinois by clarifying the process for law enforcement to remove unauthorized occupants from homes. Under current law, squatters are considered tenants, which forces property owners to undergo a lengthy eviction process.

Introduced by Sen. Lakesia Collins (D-Chicago), this legislation closes a critical loophole by reclassifying squatters as trespassers, ensuring they can no longer exploit legal protections to delay removal from properties they had no right to occupy.

The new law takes effect Jan. 1, 2026.

Making Tiny Homes for Vets more Affordable

Senate Bill 39 will assist nonprofit organization that build Tiny Homes for Veterans who are homeless or at risk of homelessness by prohibiting local governments from passing local laws mandating that the tiny homes also include EV charging stations. An organization in Lincoln, Illinois began this conversation to help communities better afford to provide tiny homes for homeless veterans. The bill was originally brought forward by Senator Sally Turner from Lincoln.

Illinois REALTORS® have followed this bill since it has been discussed in the legislature for the past 3 years. We are pleased the bill has been signed into law which became effective with the Governor's signature.

Filing Fraudulent Titles Illegal

Senate Bill 1523 will make it illegal for any person to file a deed that is fraudulent, unlawfully altered, or intended to unlawfully cloud or transfer the title of any real property.

The bill also requires all counties in Illinois to establish a property fraud alert system. Requires every recorder to establish a fraud referral and review process to review deeds and instruments.

Illinois REALTORS® supported this bill that is intended to stop title transfer scams we are seeing across the nation.

We have all seen TV commercials warning of this scam. As REALTORS®, you may even know some people who have been victims.

SB 1523 is now Public Act 104-0382 and becomes effective Jan. 1, 2026. The bill was introduced by Senator Doris Turner from Springfield.

Expands IHDA powers to assist in Affordable Housing Planning

The Illinois Housing Development Authority (IHDA) is now required to collect data and make certain calculations based on a number of factors outlined in the legislation. IHDA is to publish the collected data at least once every 5 years.

Introduced by House Assistant Majority Leader Will Guzzardi (Chicago), HB 3616 also requires IHDA to compile the collected data into a report and submit the report to the General Assembly. Provides that the collected data shall be for informational purposes only and shall not factor into the determination of exempt local governments.

Illinois REALTORS® followed this important legislation. We thank the sponsor for bringing this bill forward and the Governor for signing this bill into law which becomes effective Jan. 1, 2026.

Condo Ombudsperson Program to Continue

Illinois REALTORS® supported the legislation for extending the Condominium and Common Interest Community Ombudsperson Act, which was set to expire on January 1, 2026. The Act and the Program are extended until January 1, 2029.

Senator Sara Feigenholtz introduced SB 1383, which is now Public Act 104-0377, at the request of the Community Association of Illinois.

Rooftop Safety for First Responders Act

Senate Bill 1742 enacts the Rooftop Safety for First Responders Act, which aims to improve rooftop safety—particularly skylights and other openings—for firefighters operating during rooftop emergencies. The legislation was introduced following a fatal firefighter incident in a suburban community.

REALTORS® opposed a similar proposal in 2024 that would have prohibited skylights on residential properties, raising concerns among stakeholders. This year's version, introduced by Sen. Mike Porfirio (D-Burbank), was more broadly supported after a key amendment addressed those concerns.

As introduced, the bill required skylights to meet the International Building Code's live load standards. Through negotiations, Illinois REALTORS® Governmental Affairs Team offered a compromise, which was adopted.

The revised language now requires that skylights and similar openings on low-sloped roofs, unless otherwise required by law to remain unobstructed, must either: (A) be glazed with wired glass, plain glass, glass block, or polycarbonate plastic designed and constructed to withstand a minimum dynamic load of 400 pounds; or (B) be protected by a parapet, extended masonry, guard, or a combination of these, in compliance with applicable safety standards.

Illinois REALTORS® appreciates the adoption of this balanced approach. Signed on Aug. 1, 2025, the law does not take effect until Jan. 1, 2026.

Task Force on Interjurisdictional Industrial Zoning Impacts Membership

Senate Bill 2506, establishes membership for the Task Force on Interjurisdictional Industrial Zoning Impacts.

The legislation was introduced by Sen. Julie Morrison (D, Deerfield) and the Illinois REALTORS® Governmental Affairs Team monitored the bill throughout the Spring Session. This measure had an immediate effective date and became law on Aug. 1, 2025. Both of the laws will be assigned a Public Act number soon.

Gender Neutral Provision added to Conveyances Act

House Bill 1083, amends several acts within the Illinois statutes to include additional gender-neutral description changes, has been signed into law by Governor Pritzker. It is now Public Act 104-0040 and will take effect on January 1, 2026. It impacts the real estate industry in its provision that notwithstanding any other provision of law, the recording of a quitclaim deed is exempt from all recording fees if executed for the sole purpose of reflecting a legal name change, and the grantor and grantee are the same individual or individuals.

Illinois REALTORS® supported this gender-neutral change, introduced by Rep. Daniel Didech (D-Buffalo Grove).

Property Conservation Rights Expanded

HB 1605 is now Public Act 104-0049 and will take effect on January 1, 2026. It amends the Real Property Conservation Rights Act (passed in 2019) to make provisions for preserving cultural heritage sites by allowing (not mandating) Illinois property owners to convey their land to a federally recognized Indian tribe that is eligible to hold the rights.

Illinois REALTORS® closely monitored this legislation, introduced by Illinois House Leader Jehan Gordon-Booth (D-Peoria).

Climate Displacement Task Force Created

Senate Bill 1859 created a task force, set up membership and established duties for a new Climate Displacement Task Force. Introduced by new Senator Graciela Guzman (D, Chicago), the measure analyzes climate-driven displacement, assesses future needs, and develops policies with community input.

Your Illinois REALTORS® Governmental Affairs staff had to follow this bill closely because it was amended a few times throughout the process.

No Fees for Filing Modifications to Restrictive Covenants

Introduced by Leader Marcus Evans (D, Chicago), House Bill 1575 improves the process of changing discriminatory provision in property documents or altering covenants that are no longer relevant.

Specifically, County Recorders are no longer allowed to charge a filing fee or a fee for making copies of a restrictive covenant modification to an unlawful restrictive covenant.

Your Illinois REALTORS® Governmental Affairs staff had to closely monitor this bill to guard against any harmful amendments.

The bill, now Public Act 104-0187, becomes effective on January 1, 2026.

Grants for Projects in Economically Distressed Communities

Senate Bill 2466, introduced by Sen. Omar Aquino (Chicago), provides financial assistance for up to 100% for the acquisition of open space lands and capital development through the Open Space Land Acquisition and Development Act (OSLAD). Said projects must conform with the purposes of OSLAD that focuses on projects in distressed communities. It becomes effective on January 1, 2026 and now is Public Act 104-0423.

Eviction of Minors

As introduced, your Illinois REALTORS® opposed House Bill 3566, sponsored by Rep. Dagmara Avelar (D, Naperville) but after numerous negotiations throughout the session and a filed amendment, we were able to take a neutral position.

The bill amends the Eviction Article of the Code of Civil Procedure to seal an eviction file when a minor has been named. It requires dismissal of a complaint in its entirety against all defendants if the complaint names a defendant who is a minor at the time of filing. It also provides that when a minor was specifically named, the case shall be immediately sealed.

Nothing in the Act prohibits a party from filing an action against any defendants who otherwise may be properly named.

Illinois REALTORS® requested the amendment that was adopted and become part of the bill. It removed an automated process for defendants to recover court costs, attorney fees and punitive damages that were filed removed an automated process for defendants to recover court costs, attorney fees and punitive damages.
The bill becomes law on January 1, 2026.

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Your Illinois REALTORS® Legal Team