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SB 2141

General Fund; FY2026 appropriation to City of Gluckstadt for widening Gluckstadt Road.

2025 Regular Session

SB 2141 would require Illinois law to govern mortgages, notes, and real estate contracts and void any out-of-state choice-of-law provisions in consumer real estate transactions.

Died In Committee
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WeVote Research Nonpartisan
Bill Summary · SB 2141

Summary — SB 2141 (Introduced 2025; sponsor: Sen. Chapin Rose)

Status note: The materials supplied contain inconsistent legislative history. The bill metadata supplied with your request lists the status as “Died In Committee” (referred and reported in early 2025). However, the internal legislative-actions block includes entries that appear to describe further passage and enactment (likely from a different or merged record). Because of this conflict, the procedural history below flags both items and recommends verifying final status with the official legislative clerk or online bill tracker.

Main purpose

SB 2141 would prohibit the use of choice-of-law clauses in mortgages, promissory notes, and other contracts that directly affect interests in Illinois real estate that attempt to apply the law of a state or country other than Illinois. The bill seeks to ensure Illinois law governs such instruments and makes inserting such clauses in consumer real-estate transactions an unlawful practice.

Key provisions

  • Amends the Residential Real Property Disclosure Act (adds new Section 46, 765 ILCS 77/46):
    • Requires any condition, stipulation, promissory note, mortgage, or contract directly affecting an interest in Illinois real estate to state that Illinois law applies.
    • Declares void any condition, stipulation, or provision purporting to apply the law of another state or country.
  • Amends the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/2A):
    • Adds that it is an unlawful practice for any person to insert a provision in any mortgage, promissory note, or other contract directly affecting a consumer’s ownership of Illinois real estate that states the law of another state or country shall apply.
    • Provides that such provisions in consumer transactions are void.

Who would be affected

  • Lenders, mortgage servicers, title companies, closing agents, and attorneys drafting mortgages, promissory notes, deeds of trust, and related instruments affecting Illinois real estate.
  • Consumers (homebuyers, homeowners refinancing) whose mortgage-related documents currently include out‑of‑state choice‑of‑law provisions.
  • Out‑of‑state creditors and financial institutions that include standardized choice‑of‑law language in loans secured by Illinois property.
  • Potentially courts and litigants: contract enforceability and forum/choice‑of‑law disputes may shift to Illinois law in covered transactions.

Enforcement and legal consequences

  • The Consumer Fraud Act amendment creates a basis for enforcement as an unlawful practice in consumer real-estate transactions; remedies under that Act (civil penalties, consumer remedies) could apply.
  • Any offending choice‑of‑law clause is declared void; affected contracts may be reinterpreted under Illinois law or subject to dispute over enforceability.
  • Commercial (non‑consumer) transactions may be treated differently depending on the scope of the Residential Real Property Disclosure Act language vs. the consumer‑specific language in the Consumer Fraud Act.

Procedural / timeline (conflicting records)

  • Introduced: February 7, 2025 (sponsor: Chapin Rose) — received by Secretary of the Senate March 10, 2025 in one record.
  • Metadata provided with the request lists: Referred to committee; “Died In Committee” (2/26/2025).
  • The document also contains a separate set of legislative-action entries that indicate committee reports, passage, and signing with an effective date of 9/1/2025 — these appear inconsistent with the “died” status and may reflect a different bill or a merged record.
  • Recommendation: verify final status and official enrolled text with the Illinois General Assembly website or legislative clerk.

Practical considerations

  • If enacted, lenders and document drafters would need to revise standard forms to remove choice‑of‑law clauses favoring other jurisdictions and to expressly state Illinois law governs.
  • Could provoke litigation over retrospectivity and whether existing contracts are affected; parties may seek declaratory relief.
  • Raises questions about conflict-of-law principles and interstate commercial practices; possible pushback from multi-state lenders and secondary-market purchasers.

If you want, I can:
- Check the official Illinois General Assembly bill status and provide the definitive legislative history and final text; or
- Draft sample model language for mortgages and promissory notes to comply with the bill’s requirements.

Compiled from official sources — confirm details with the bill’s official record.

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