As we end the year with the warm glow of Christmas lights and the thrill of New Year’s celebrations, it’s time to look ahead to what’s next. January 1, 2025, is not only the beginning of a new calendar year but also the date that nearly 300 new laws will become effective in Illinois. These laws are on virtually everything that one can think of, including health insurance, rights of employees, traffic stops, and so on, including real estate laws. Understanding these developments is not only beneficial, but also necessary if you are a homeowner, buyer, seller, or landlord.
One of the most important changes that should be looked at is a major amendment to the Illinois Real Estate License Act (RELA), requiring written brokerage agreements for all types of real estate transactions involving licensed agents. For landlords, the change from 2024 to 2025 brings even more adjustments that could reshape how you do business.
At 23 Legal, we understand how these updates can be quite challenging. That’s why Attorney Ben Weaver and his team are here to break it all down for you. Here’s a closer look at potential changes in U.S. real estate legislation, Illinois-specific updates, and how they might impact property transactions and ownership.
Reflecting on 2024: Why Staying Informed Matters
While the holiday season brings joy and comfort into our homes, it also brings a timely reminder of how to protect what we hold dear – our homes, our investments, and our legacies. The laws and policies governing real estate are ever-dynamic, and this may change within a short time affecting issues such as property taxes or zoning laws.
In 2024, we saw changes in federal policies related to sustainable housing, rising interest rates that reshaped the mortgage market, and localized efforts to address affordable housing shortages. These changes were a wake-up call that real estate legislation is not the exclusive preserve of lawyers but is important for anyone who is a property owner, investor, or developer.
The same principle applies to looking ahead to 2025. Staying informed can help you adapt to new laws, avoid pitfalls, and seize opportunities that align with your family’s unique goals.
Anticipated U.S. Real Estate Legislation Changes for 2025
As the federal government and state legislatures respond to new and emerging housing issues, several changes in the legislation are likely to affect property owners, tenants, and real estate agents. Notable changes include:
1. Sustainability and Green Building Incentives
Environmental issues are still crucial; new stimuli for sustainable construction practices are expected in 2025. In Illinois, SB 2960 requires that hotels should not use single-use plastic bottles, as part of a shift towards sustainability. Consumers across the country may also be offered increased tax credits for putting up solar panels, energy-efficient windows, and environmentally friendly building materials.
What This Means for You: If you are considering a renovation or buying a green property, these incentives could save money increase the value of a property, and fit into environmentally friendly objectives.
2. Changes to Capital Gains Tax Exemptions
There have been debates at the federal level on how to adjust the current capital gains tax exclusions for primary residences. The present limits of $250,000 for single and $500,000 for married couples may be reduced or accompanied by new requirements. Another legislation that might affect property transactions in Illinois is SB 2919 which permits the sale of particular foreclosed properties through the Internet.
What This Means for You: If one intends to sell the home in the year 2025, it is advisable to make financial planning early enough and seek the services of a legal advisor so as to maximize tax issues that may arise in the future or meet new requirements.
3. Rental Market Regulations
Tenant rights continue to be an issue of interest, including the Illinois bills HB 4206 which allows tenants to pay landlords in cash or check, and HB 4768 which prohibits landlords from retaliating against tenants. At a national level, possible measures include possible limitations to the annual rent rise and possible incentives to turn rental properties into affordable housing.
What This Means for You: Landlords and tenants alike should stay informed to avoid legal conflicts. New protections are available to tenants, and landlords should be ready to pay for compliance with the new rules.
4. Insurance and Liability Updates
There are several major insurance reforms enacted by Illinois: HB 5357 requires insurers to include information about coverage of losses due to sewer backups and SB 2697 extends Medicaid and insurance coverage for genetic cancer testing. These changes could influence real estate liability and homeowner insurance policies.
What This Means for You: Check into your insurance policies to see if they meet new compliance laws and if they are sufficient to cover your property or your family.
5. Transparency in Real Estate and Employment
Legislation like Illinois’ HB 3129, requiring employers to disclose pay scales in job postings, highlights a growing emphasis on transparency. Similarly, real estate transactions might face new disclosure laws such as SB 2601, which requires landlords to inform their tenants that the property is in a high-risk flood zone.
What This Means for You: The buyers, sellers, and landlords should expect to be more legally bound to provide more disclosures than before. Such transparency can build trust but may also necessitate detailed documentation and legal compliance.
Illinois Real Estate Laws to Watch in 2025
On a domestic front, Illinois has brought several new legislative changes that may greatly affect property transfer and ownership in 2025. Here’s what to keep an eye on:
1. Property Tax Assessments
Illinois lawmakers are taking steps to increase transparency in property tax assessments, addressing concerns about rising tax burdens. The owners of homes will soon be able to get more information on how the value of their property is determined and more chances to appeal against an unfair valuation.
What This Means for You: Knowing the assessed value of your property could assist you in not paying more taxes than necessary, and help you get the right amount of taxes.
2. Affordable Housing Initiatives
Due to the increasing problem of housing affordability, Illinois is expanding support for first-time homebuyers and offering grants, tax credits, and down payment assistance to developers of affordable homes.
What This Means for You: If you’re considering buying your first home, these initiatives could make homeownership more attainable in 2025.
3. Eviction Moratorium Revisions
After the pandemic, Illinois is implementing a fair approach to protecting tenants and landlords. The changes are such things as simplification of eviction processes especially when the tenant fails to pay rent as well as increased mediation services to handle the matters.
What This Means for You: Whether you’re a tenant or landlord, these laws emphasize understanding your rights and responsibilities in rental agreements.
4. Reusable Resident Screening Reports
Gone are the days when a prospective tenant is charged multiple fees while applying for a rental. From the year 2025, landlords must accept reusable resident screening reports, prepared within 30 days by Certified Credit Reporting Agencies(CRA) and distributed free of charge to landlords.
What This Means for You: Still, landlords can conduct credit and background checks on the applicants while the residents enjoy a cheap and efficient application process.
5. Fee-Free Rent Payment Options
New laws to enhance the transparency of fees make landlords provide free rent payment methods such as paper checks or cash. This applies to all the lease that are entered into after the commencement of this law so that residents cannot be charged extra fees when paying rent through the Internet.
What This Means for You: Residents get convenient payment methods while landlords offer a convenient payment system for residents.
6. Landlord Retaliation Protections
The Landlord Retaliation Act ensures residents can report unsafe conditions or legal violations without fear of retribution. It is unlawful for a landlord to evict a tenant, increase rent, or decrease services in response to a tenant’s complaint.
What This Means for You: Residents are empowered to address legitimate concerns without worrying about unfair treatment, while landlords are encouraged to maintain ethical practices.
7. Accessible Parking for Condo Residents
Recent changes to the Condominium Property Act require condo boards to address and provide accessible parking for disabled persons. Any requests must be dealt with within 45 days while being fair and equitable as well as compliant.
What This Means for You: Disabled residents receive an equal opportunity to parking lots with legal redress in case of non-compliance.
8. Flood Risk Disclosures
Flood hazards, including FEMA flood zone, history of flooding, and other risks to the lower floors of the building, must be reported by landlords. This transparency helps residents to make the right decisions when it comes to housing.
What This Means for You: Landlords who fail to comply may face lease termination and damages, underscoring the importance of clear communication.
9. Written Brokerage Agreements
Illinois is strengthening the rule that any brokerage relationship, whether exclusive or nonexclusive, must be in writing. This ensures formal documentation, reducing confusion and fostering accountability.
What This Means for You: Whether you’re a consumer or broker, written agreements provide a clear framework for rights, responsibilities, and expectations.
10. Real Estate Continuing Education (CE) Updates
To this end, brokers and managing brokers will have to take more Core CE hours with an emphasis on Fair Housing training, along with new topics such as diversity, equity, and inclusion.
What This Means for You: These updates comply with the current real estate market, which is equitable and diverse.
11. License Reciprocity and Recovery Fund Updates
Illinois is moving from reciprocity to endorsement for out-of-state licensees. Also, the Recovery Fund is now required to have a minimum balance of $1 million to safeguard consumers.
What This Means for You: The real estate industry players will be able to get their licenses more easily while the consumers are offered better protection.
How These Changes Impact Property Transactions
Legislative updates can affect every stage of a property transaction, from listing to closing. Here’s how:
- Homebuyers: New tax credits, financing options, and affordability programs can influence your budget and purchasing power.
- Sellers: Changes to capital gains taxes and property tax assessments can impact your net proceeds.
- Investors: Rental regulations and zoning updates may affect your ROI and long-term strategies.
Navigating these complexities requires expert guidance. At 23 Legal, we focus on the specifics of real estate law to provide you with the best guidance for your transactions.
Start the New Year on Solid Ground with 23 Legal
These days, it’s not just about knowing these legislations, but more about gaining trust, being transparent, and more importantly, creating opportunities. To homeowners, tenants, landlords, and real estate professionals, these changes mean a better experience, stronger protection, and fewer hitches in the process. Indeed, it is possible to state that only fair and transparent practices are beneficial for all the parties.
Attorney Ben Weaver is proud to be your trusted guide through the real estate legalities and important updates. As 2025 approaches, we want to assist you in starting the new year strong, secure, and equipped for success!
Wishing you and your family a joyous Holiday Season and a prosperous New Year! Partner with Ben Weaver for successful real estate transactions in 2025.
Accomplish your real estate goals with 23 Legal: (847) 447-6004
Why Choose 23 Legal
23 Legal offers Real Estate and Estate Planning legal services to individuals, families, community associations and small business owners throughout Chicagoland. We know how intimidating “the law” can be. In fact, when most people think of law offices, they think of stuffy leather chairs, huge wooden desks and pompous lawyers who charge outrageous fees. That’s not us! We believe in 1-to-1; the same lawyer should work with you all the way through. Whether you have an estate planning issue, family trust concern, or you have a legal problem in regard to a new home, business, real estate or remodel, you need a lawyer who cares. That’s where Ben comes in! We are great listeners; more than that, we are lawyers who believe that our clients always come first.
