INSTALLMENT SALES ACT

Illinois General Assembly - Full Text of HB5250

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5250

Introduced 2/10/2026, by Rep. Amy Elik

SYNOPSIS AS INTRODUCED:

765 ILCS 67/5

Amends the Installment Sales Contract Act. Changes the definition of
"seller" under the Act to mean an individual or legal entity that possesses
a legal or beneficial interest in real estate and that enters into an
installment sales contract more than 3 times during a continuous 12-month
period to sell residential real estate. Provides that the Installment
Sales Contract Act applies only to contracts entered into once an
individual or legal entity has qualified as a seller. Effective
immediately.
LRB104 17763 JRC 31195 b

A BILL FOR

HB5250
LRB104 17763 JRC 31195 b
1

AN ACT concerning civil law.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Installment Sales Contract Act is amended
5
by changing Section 5 as follows:

6

(765 ILCS 67/5)
7

Sec. 5.
Definitions.
As used in this Act, unless the
8
context otherwise requires:
9

"Amortization schedule" means a written schedule which
10
sets forth the date of each periodic payment, the amount of
11
each periodic payment that will be applied to the principal
12
balance and the resulting principal balance, and the amount of
13
each periodic payment that will be applied to any interest
14
charged, if applicable, pursuant to the contract.
15

"Balloon payment" means a payment, other than the initial
16
down payment, in which more than the ordinary periodic payment
17
is charged during the contract.
18

"Business day" means any calendar day except Saturday,
19
Sunday, or a State or federal holiday.
20

"Buyer" means the person who is seeking to obtain title to
21
a property by an installment sales contract or is obligated to
22
make payments to the seller pursuant to the contract.
23

"Date of sale" means the date that both the seller and

HB5250
- 2 -
LRB104 17763 JRC 31195 b
1
buyer have signed the written contract.
2

"Dwelling structure" means any private home or residence
3
or any building or structure intended for residential use with
4
not less than one nor more than 4 residential dwelling units.
5

"Installment sales contract" or "contract" means any
6
contract or agreement, including a contract for deed, bond for
7
deed, or any other sale or legal device whereby a seller agrees
8
to sell and the buyer agrees to buy a residential real estate,
9
in which the consideration for the sale is payable in
10
installments for a period of at least one year after the date
11
of sale, and the seller continues to have an interest or
12
security for the purchase price or otherwise in the property.
13
"Installment sales contract" does not include a financing
14
arrangement that for religious or cultural reasons does not
15
allow the imposition or collection of interest and that is
16
offered by a person, partnership, association, limited
17
liability company, or corporation doing business under and as
18
permitted by any law of this State or the United States
19
relating to banks, savings and loan associations, savings
20
banks, credit unions, or third-party religious or cultural
21
lenders.
22

"Residential real estate" means real estate with a
23
dwelling structure, excluding property that is sold as a part
24
of a tract of land consisting of 4 acres or more zoned for
25
agricultural purposes.
26

"Seller" means an individual or legal entity that

HB5250
- 3 -
LRB104 17763 JRC 31195 b
1
possesses a legal or beneficial interest in real estate and
2
that enters into an installment sales contract more than 3
3
times during a
continuous
12-month period to sell residential
4
real estate. Any individual or legal entity that has a legal or
5
beneficial interest in real estate under the name of more than
6
one legal entity shall be considered the same seller.
This Act
7
shall only apply to contracts entered into once an individual
8
or legal entity has qualified as a "seller".

9

"Third-party religious or cultural lender" means an
10
individual or legal entity licensed under the Residential
11
Mortgage License Act of 1987 that is in compliance with the
12
principles and norms of an established religious or cultural
13
legal system and that is obtaining an interest in a
14
residential dwelling solely as collateral security for a
15
financing arrangement that for religious or cultural reasons
16
does not allow the imposition or collection of interest and
17
had no interest in the residential dwelling prior to the
18
consummation of the financing arrangement, other than an
19
interest in the nature of collateral security that may have
20
been obtained as part of a prior financing arrangement made by
21
the third-party lender.
22
(Source: P.A. 100-416, eff. 1-1-18; 100-626, eff. 7-20-18;
23
101-557, eff. 6-1-20
.)

24

Section 99.
Effective date.
This Act takes effect upon
25
becoming law.

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