Now, we need to look at the law.First, pursuant RLTO Section 5-12-140(a), no Chicago rental agreement may provide that the landlord or tenant agrees to waive or forego rights, remedies or obligations provided under this chapter.Second, pursuant to Chicago RLTO Section 5-12-080(d), deductions may be made to a Chicago tenant’s security deposit for only two (2) things: (1) any unpaid rent which has not been validly withheld or deducted pursuant to state or federal law or local ordinance ; (2) a reasonable amount necessary to repair any damages caused to the premises, reasonable wear and tear excluded.Based on a clear reading of RLTO Sections 5-12-080(d)(1) and (2), a Chicago landlord has the right to use a security deposit for unpaid rent and the tenant has that same right.

The owner will have to go to previous owner & listing broker to remedy the situation. 

The IRA does not shield you in any way.The use of the IRA LLC format remedies this issue.  

In the LC the remedy would be an eviction.

You will also need to state the address where payments are to be made, what constitutes default and remedies for collections in default and late fees is any.In setting interest rates check for usury laws and late fee amounts that may be charged, such applied to such limitations.

I think in part to the temporary lease agreement that TAR has, and the fact that if a deed is not going to be delivered within 180 days, and is not a lease option, then the sections regarding a contract for deed apply. 5.063 -5.065 discuss notices required and remedies of default, focusing on the mortgage and default of the mortgage, and that the seller must give specific written notice if the mortgage goes into default, and even states the notice to be in 14 point type. 5.065 also states the seller must give the buyer a 30 day notice to cure if they default on a payment. 5.073 states the seller may not impose a late fee of greater than 8% of the monthly payment, 5.073(a) does not apply.5.073 (3) (4) state the seller can not impose a prepayment penalty or withhold an option fee for a late payment, ie.

Our company is encountering a few great homes in the Orlando, FL area that aren't selling because they have issues with deteriorating lead paint.  We buy fixers but will need help handling this particular problem. Are...

Puts a whole new spin on home inspections and remediation for environmental issues.

Escrow does not release EM funds upon default of the contract, even if such remedy is outlined in the contract.  

While it isnt my place to judge what lesson they should learn or what it should cost them, it is my place to ensure that i take care of me and my own so that I AM in a place to give back and help those who need it.It appears that your friends made some poor decisions and if they were in a place to remedy the situation on their own, they would do so.