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Real estate glossary and exam guide

Condemnation: from acquisition offer to compensated taking

Condemnation is not a single letter that makes ownership vanish. It is a sequence. An authorized entity identifies a public project, defines the property interest it needs, investigates title and value, attempts acquisition, files when the deal cannot be completed, proves its right to take, litigates compensation, pays the award, and obtains title or possession under the court's order. Learn that sequence and most exam questions stop looking alike.

Last updated: August 1, 2026

What does this exam area cover?

Short answer: Condemnation is the legal proceeding used to exercise eminent domain. In Illinois, an authorized condemning authority must satisfy the governing grant of power and the Eminent Domain Act, establish public use and any required necessity, identify the property and interested parties, obtain a compensation verdict or finding, pay or deposit the required amount, and secure title or possession through the applicable judgment or quick-take order.

Official section
National II.A.2: Eminent-domain acquisition process
Broker weight
Part of 5% of the national broker portion
Expected scored items
The current PSI outline assigns Land Use Controls about 5 of the 100 scored national broker items

This guide follows the PSI Illinois Candidate Information Booklet effective June 24, 2026, the Illinois Constitution, and the Illinois Eminent Domain Act checked through August 1, 2026. Condemnation practice is highly fact specific. Federal funding conditions, project-specific grants, state-agency notices, utility statutes, quick-take provisions, relocation programs, leases, mortgages, title defects, environmental issues, court precedent, and procedural deadlines can change the result. The page teaches exam architecture and cannot replace immediate legal and appraisal advice in a live acquisition.

What is on the official outline?

Topic
Power before process
What to know
Eminent domain, express grant, condemning authority, statute, permitted project, public use, necessity, limits, strict construction, jurisdiction, and burden
Best exam move
Before discussing price, confirm that this plaintiff has authority to condemn this interest for this purpose.
Topic
Project and property definition
What to know
Public improvement, route, site, plans, parcel, legal description, permanent acquisition, temporary easement, access, construction limits, improvements, fixtures, and remainder
Best exam move
Mark exactly what government seeks. A fee taking, permanent easement, and temporary work area have different effects.
Topic
Title investigation
What to know
Record owner, tenant, mortgagee, judgment creditor, tax lien, easement holder, contract purchaser, association, unknown owner, nonresident, legal description, survey, and service
Best exam move
A condemnation must account for parties who hold interests, not merely the name on a yard sign or tax bill.
Topic
Appraisal and valuation scope
What to know
Property inspection, interest acquired, valuation date, highest and best use, comparable sales, cost, income, partial taking, remainder, damages, benefits, fixtures, environmental condition, and report
Best exam move
Make the appraisal match the legal interest and project plan. A whole-parcel appraisal alone may miss a partial-taking issue.
Topic
Acquisition offer
What to know
Written offer, appraisal basis, negotiation, fee, easement, damages, closing, deed, release, title documents, owner questions, counteroffer, settlement, and no agreement
Best exam move
An offer starts negotiation; it does not itself transfer title or establish final just compensation.
Topic
State-agency information duties
What to know
735 ILCS 30/10-5-15, designated contact, first contact, writing, property description, agency identity, general purpose, facility type, general rights, and no specific legal advice
Best exam move
Apply this section specifically to the State and its agencies rather than assuming every provision governs every condemnor identically.
Topic
Inability to complete agreement
What to know
Compensation disagreement, incapacity, unknown owner, nonresident owner, clear-title problem, missing conveyance documents, legal requirements, warrant processing, and court filing
Best exam move
A case may reach court because price is disputed or because a voluntary conveyance cannot legally or practically be completed.
Topic
Condemnation complaint
What to know
Circuit court, county, plaintiff, defendants, enabling authority, public purpose, property description, interests, inability to agree, prayer for relief, filing date, summons, and publication
Best exam move
The complaint begins the judicial process and often establishes the general valuation date under section 10-5-60.
Topic
Service and appearance
What to know
Summons, publication, known owner, unknown owner, nonresident, return date, counsel, answer, jury demand, objection, default, notice, and deadline
Best exam move
Do not treat service papers as routine mail. They trigger procedural rights and response deadlines.
Topic
Right-to-take issues
What to know
Authority, public use, necessity, ownership and control, statutory proof, good-faith acquisition dispute, property description, purpose, traverse, evidentiary hearing, and judicial ruling
Best exam move
Separate whether the plaintiff may take from how much compensation must be paid.
Topic
Discovery and experts
What to know
Appraiser, engineer, planner, architect, environmental expert, title evidence, project plans, comparable sales, leases, operating statements, zoning, depositions, reports, disclosures, and motions
Best exam move
Compensation is evidence driven. A broker's hunch or automated value is not a substitute for qualified testimony.
Topic
Fair cash market value
What to know
Willing purchaser, willing owner, neither compelled, voluntary sale, cash equivalence, valuation date, market conditions, highest and best use, special-use property, and admissibility
Best exam move
Use the statutory willing-buyer and willing-owner measure unless a supported special-use rule applies.
Topic
Project influence
What to know
Appreciation, depreciation, public improvement, proximate cause, project announcement, blight, construction fear, route, separate later project, valuation date, and exclusion
Best exam move
Section 10-5-60 generally excludes value changes caused by the very improvement for which the property is condemned.
Topic
Partial-taking valuation
What to know
Part acquired, value taken, remainder, before condition, after condition, access, parking, setback, shape, drainage, utility, cost to cure, severance damage, and benefit
Best exam move
Analyze both the acquired interest and legally compensable consequences for what remains.
Topic
Jury demand and trial
What to know
Constitution, section 10-5-5, condemnor demand with complaint, defendant demand by return date, waiver, bench trial, valuation evidence, instructions, premises view, written report, and verdict
Best exam move
Illinois provides jury determination as provided by law, but a party must comply with the statutory demand timing.
Topic
Premises view and written report
What to know
Request of either party, jury visit, land taken or damaged, examination, evidence, written report, amendment under court direction, compensation by claimant, and recorded verdict
Best exam move
A jury view supplements the evidence under section 10-5-45; it is not a casual broker inspection.
Topic
Ordinary judgment and payment
What to know
Verdict, court finding, full compensation, reasonable payment time, entry, use, evidence of payment, county treasurer, entitlement, allocation, appeal, dismissal, and fees
Best exam move
In an ordinary case, connect lawful entry to the judgment and payment of full compensation under section 10-5-70.
Topic
Quick-take track
What to know
Article 20, express power, preliminary petition, immediate need, preliminary compensation, deposit, order, title or possession, withdrawal, final trial, deficiency, excess, interest, and appeal
Best exam move
Place preliminary compensation before early possession and final compensation afterward. Do not merge the two amounts.
Topic
Relocation costs
What to know
Displaced person, reasonable relocation costs, federal funds, Uniform Relocation Assistance Act, reimbursement, moving, eligibility, separate claim, documentation, and no automatic market-value addition
Best exam move
Keep relocation reimbursement separate from fair cash market value and award allocation.
Topic
Transaction and broker response
What to know
Known notice, offer, filed complaint, title exception, proposed route, closing delay, lender, disclosure, material fact, document delivery, legal referral, appraisal limits, and recordkeeping
Best exam move
State verified facts and get specialized help. Never promise that a project will vanish or predict a particular award.

Which distinctions produce the most mistakes?

Terms
Eminent domain vs. condemnation
Difference
Eminent domain is the authorized power. Condemnation is the legal process used to carry out the acquisition or damage.
Question cue
Power versus procedure.
Terms
Acquisition condemnation vs. code condemnation
Difference
Acquisition condemnation obtains a property interest for public use. Code condemnation declares a structure unsafe or unfit and regulates its occupancy or removal.
Question cue
Taking title or rights versus policing condition.
Terms
Offer vs. complaint
Difference
An offer proposes voluntary acquisition. A complaint invokes circuit-court jurisdiction to pursue a compelled acquisition and compensation decision.
Question cue
Negotiation document versus lawsuit pleading.
Terms
Right to take vs. amount of compensation
Difference
Right-to-take issues concern authority, public use, necessity, and statutory limits. Compensation issues concern the value of property taken or damaged.
Question cue
May government acquire versus what must it pay.
Terms
Complaint date vs. possession date
Difference
The complaint date starts the court case and generally anchors valuation. Possession may occur later under an ordinary judgment or earlier through authorized quick-take procedure.
Question cue
Case and value marker versus physical control.
Terms
Preliminary compensation vs. final compensation
Difference
Quick-take preliminary compensation supports early title or possession. Final compensation follows the completed valuation process and can require additional payment or refund treatment.
Question cue
Early deposit versus completed award.
Terms
Total award vs. claimant allocation
Difference
The total award values compensable property. Allocation determines the shares of owners, tenants, mortgagees, lienholders, and other entitled parties.
Question cue
Property value versus division of proceeds.
Terms
Fair market value vs. project influence
Difference
Fair market value reflects a voluntary market measure. Section 10-5-60 generally removes appreciation or depreciation proximately caused by the project itself.
Question cue
Unaffected market evidence versus project-created change.
Terms
Fee acquisition vs. easement acquisition
Difference
Fee acquisition transfers broad ownership. An easement transfers a defined use right while another owner retains the underlying estate subject to the burden.
Question cue
Ownership versus limited right.
Terms
Permanent easement vs. temporary easement
Difference
A permanent easement continues according to its terms. A temporary easement ends after the stated period or event and should include its use and restoration conditions.
Question cue
Continuing burden versus construction-period right.
Terms
Just compensation vs. relocation reimbursement
Difference
Just compensation pays for property taken or damaged. Relocation reimbursement covers qualifying displacement costs through separate statutory rules.
Question cue
Property value versus moving expense.
Terms
Settlement vs. verdict
Difference
A settlement resolves acquisition or compensation by agreement. A verdict or court finding decides compensation after contested evidence.
Question cue
Agreed result versus adjudicated result.

The C-A-S-E-F-I-L-E map for condemnation

  1. Condemnor: identify the plaintiff, its express power, the public project, and every condition placed on that authority.
  2. Acquisition: draw the fee, strip, easement, temporary area, access change, improvements, and remainder on one parcel sketch.
  3. Search title: list owners, tenants, mortgages, liens, easements, contracts, associations, unknown claimants, and service addresses.
  4. Evidence of value: set the valuation date and organize highest and best use, comparable sales, income, cost, damages, benefits, project influence, and expert support.
  5. Filing: track offer, inability to complete agreement, complaint, service, jury demand, right-to-take objections, discovery, and trial dates.
  6. Immediate possession: determine whether Article 20 quick-take authority exists, then separate preliminary deposit from final award.
  7. Legal judgment: connect verdict or court finding, full payment, title or possession, allocation among claimants, release of interests, relocation, and appeal.
  8. Explain carefully: brokers communicate verified facts and documents, disclose as required, preserve deadlines, and refer legal and valuation questions.
Stage
1. Authority
Core question
Can this entity take for this purpose?
Evidence to find
Enabling statute and project authorization
Stage
2. Scope
Core question
What property interest is needed?
Evidence to find
Survey, plans, legal description, easement terms
Stage
3. Offer
Core question
Can acquisition be completed voluntarily?
Evidence to find
Appraisal, written offer, title documents, negotiations
Stage
4. Complaint
Core question
What does the condemnor ask the court to acquire?
Evidence to find
Filed pleading, summons, parties, valuation date
Stage
5. Litigation
Core question
May it take, and what is the value?
Evidence to find
Motions, discovery, expert reports, jury demand
Stage
6. Possession
Core question
Ordinary judgment or quick-take?
Evidence to find
Court order, deposit, payment, title evidence
Stage
7. Closeout
Core question
Who receives funds and what remains?
Evidence to find
Allocation order, relocation records, final title, appeal

How do the rules work in scenarios?

The letter is an offer, not a transfer

Scenario: A state agency sends an owner a written offer for a 20-foot highway strip and includes an appraisal summary. The owner does not sign anything.

  1. The offer begins or continues an attempted voluntary acquisition.
  2. No deed or easement has been delivered, and no court order is described.
  3. The agency may negotiate further or, if authorized and unable to complete agreement, file a condemnation complaint.

Answer: The owner still holds the property; the offer alone has not transferred the strip.

Price agreement but defective title

Scenario: An owner accepts the offered amount, but an unresolved estate and missing conveyance documents prevent delivery of clear title.

  1. The parties may agree economically while being unable to complete a valid conveyance.
  2. Section 10-5-10 recognizes circumstances involving clear title and required documents.
  3. A court proceeding can address acquisition and the rights of interested parties rather than pretending the title problem does not exist.

Answer: Agreement on price does not guarantee that a voluntary closing can be completed.

Complaint date and project influence

Scenario: A new station announcement raises speculative asking prices along the proposed site. The authority later files to condemn a parcel for that same station.

  1. Section 10-5-60 generally anchors value to the complaint date, subject to its limited later-date provisions.
  2. It also excludes appreciation or depreciation proximately caused by the improvement itself.
  3. The appraiser must support an unaffected market value rather than simply adopt project-inflated asking prices.

Answer: Apply the statutory valuation date and project-influence rule.

A partial taking changes parking

Scenario: A road widening removes 18 parking spaces from a retail parcel and shifts the driveway. The store and most land remain.

  1. This is a partial taking, not a total acquisition.
  2. The appraiser must analyze the land taken and the market effect of access, circulation, parking supply, zoning compliance, and possible cure.
  3. Not every business complaint is compensable, but ignoring the remainder would also be incomplete.

Answer: Value the acquired strip and any legally compensable effect on the remainder.

The owner misses the jury-demand deadline

Scenario: The condemning authority did not demand a jury with its complaint. The owner wants a jury but waits beyond the return-date rule stated in section 10-5-5.

  1. The Illinois Constitution provides jury determination as provided by law.
  2. Section 10-5-5 prescribes when each side must demand the jury.
  3. A late request can risk waiver, so a broker should never advise an owner to wait.

Answer: The owner may lose the jury route by missing the statutory demand timing.

Quick-take deposit is not the final number

Scenario: A court authorizes quick-take and sets preliminary compensation at $420,000. After full valuation evidence, final compensation is $465,000.

  1. The $420,000 figure supports the accelerated taking under the preliminary process.
  2. The final award is $45,000 higher.
  3. The final order addresses the additional amount and any interest or other statutory treatment.

Answer: The condemning authority still owes the final-award difference under the applicable order and law.

One award, several claimants

Scenario: A condemned building is owned by a landlord, occupied under a long lease, and encumbered by a mortgage and a recorded judgment.

  1. The condemnation file must identify all relevant interests.
  2. The property valuation and claimant allocation are separate stages.
  3. Lease language, mortgage terms, lien priority, and court findings affect distribution of deposited compensation.

Answer: Do not pay the full award to the fee owner without resolving the other valid claims.

What are the common exam traps?

Trap
Calling condemnation the government power
Correction
Eminent domain is the power. Condemnation is the process used to exercise it.
Trap
Treating an acquisition case as an unsafe-building order
Correction
Ask whether the government seeks title or an interest, or instead regulates occupancy and physical condition.
Trap
Starting with valuation before checking authority
Correction
First confirm the express power, authorized purpose, public use, and necessary property.
Trap
Assuming an offer transfers ownership
Correction
Title changes through a completed voluntary conveyance or a valid court order and required payment or deposit.
Trap
Assuming only a price dispute can lead to filing
Correction
Section 10-5-10 also addresses incapacity, unknown or nonresident owners, clear-title issues, and missing required documents.
Trap
Serving only the fee owner
Correction
Title work may reveal tenants, lenders, lienholders, contract parties, easement holders, and unknown claimants.
Trap
Treating right to take and compensation as one issue
Correction
Authority and public use answer whether government may acquire; valuation answers how much it must pay.
Trap
Using today's value without checking the statutory date
Correction
Section 10-5-60 generally uses the complaint date and provides limited court flexibility after a delayed trial.
Trap
Including value changes caused by the project
Correction
Apply the project-influence exclusion in section 10-5-60 and its stated separate-project exception.
Trap
Valuing only land area in a partial taking
Correction
Analyze easement terms, access, parking, setbacks, improvements, use, cure, and the remainder.
Trap
Assuming a jury appears automatically
Correction
Section 10-5-5 contains demand deadlines. No timely demand can lead to a court trial without a jury.
Trap
Giving every plaintiff quick-take power
Correction
Quick-take requires a separate express grant and compliance with Article 20.
Trap
Calling preliminary compensation final
Correction
Quick-take preliminary compensation supports early acquisition; the final trial can produce a different amount.
Trap
Adding relocation costs to market value
Correction
Relocation reimbursement is a separate statutory subject, not an automatic appraisal adjustment.
Trap
Calling these official PSI questions
Correction
These are original items aligned to the current public outline and Illinois primary law.

Can you answer these original practice questions?

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

1. Which statement correctly distinguishes the two terms?

  1. Eminent domain is the power; condemnation is the process
  2. Condemnation is the tax; eminent domain is the assessment
  3. They refer only to unsafe buildings
  4. Both require owner consent in every case
Show answer and explanation

Answer: Eminent domain is the power; condemnation is the process

This is the core exam distinction between legal authority and judicial procedure.

2. An authorized Illinois condemnor cannot agree with the owner on compensation. What can it generally do next after satisfying applicable prerequisites?

  1. File a condemnation complaint in the proper circuit court
  2. Change title records without a deed or court order
  3. Order the broker to set the award
  4. Convert the parcel to personal property
Show answer and explanation

Answer: File a condemnation complaint in the proper circuit court

Section 10-5-10 authorizes a complaint in the county where the property or part of it is situated under the described circumstances.

3. What does a written acquisition offer do by itself?

  1. Proposes a voluntary transaction but does not transfer title
  2. Automatically records a deed
  3. Eliminates every mortgage
  4. Sets final compensation beyond challenge
Show answer and explanation

Answer: Proposes a voluntary transaction but does not transfer title

A completed conveyance or valid condemnation order with required payment changes the property interest.

4. What date generally anchors fair cash market value under 735 ILCS 30/10-5-60?

  1. The date the condemnation complaint is filed
  2. The date the owner bought the property in every case
  3. The date of the last tax bill
  4. The broker's listing date
Show answer and explanation

Answer: The date the condemnation complaint is filed

The section includes limited later-date discretion when trial starts more than two years later.

5. Which value change is generally excluded under section 10-5-60?

  1. Appreciation or depreciation proximately caused by the improvement itself
  2. Every market change anywhere in Illinois
  3. Every renovation made before project planning
  4. All legally permitted development potential
Show answer and explanation

Answer: Appreciation or depreciation proximately caused by the improvement itself

The project should not create the very value increase or decrease used to calculate its acquisition cost, subject to the statutory separate-project exception.

6. What must a defendant generally do to obtain a jury under section 10-5-5?

  1. Make a demand by the statutory return-date deadline
  2. Wait until after judgment
  3. Ask the listing broker
  4. Pay the property taxes twice
Show answer and explanation

Answer: Make a demand by the statutory return-date deadline

The constitutional jury protection operates as provided by law, including the demand procedure.

7. What is the best first valuation question in a partial taking?

  1. What interest is acquired and how is the remainder affected?
  2. What is the owner's sentimental attachment?
  3. What commission would a broker charge?
  4. What is the HOA election date?
Show answer and explanation

Answer: What interest is acquired and how is the remainder affected?

The exact acquisition and its legally compensable effects define the appraisal problem.

8. What does quick-take preliminary compensation accomplish?

  1. It supports authorized early title or possession while final compensation remains to be determined
  2. It permanently bars a later valuation trial
  3. It gives every municipality unlimited power
  4. It replaces the public-use requirement
Show answer and explanation

Answer: It supports authorized early title or possession while final compensation remains to be determined

The accelerated procedure uses a preliminary amount, followed by the final-award process.

9. A condemnation award covers a leased, mortgaged property. What must occur after total compensation is fixed?

  1. Entitlement must be allocated among valid interest holders
  2. The tenant automatically receives everything
  3. The lender automatically receives nothing
  4. The broker divides funds without an order
Show answer and explanation

Answer: Entitlement must be allocated among valid interest holders

The court determines rights to deposited compensation under the governing interests and law.

10. How should a broker respond to a newly served condemnation complaint?

  1. Deliver and document the verified information and urge prompt qualified legal advice
  2. Promise the owner a specific award
  3. Tell the owner that response deadlines do not matter
  4. Hide the filing from a current buyer
Show answer and explanation

Answer: Deliver and document the verified information and urge prompt qualified legal advice

A broker should protect communication and disclosure duties without practicing law or predicting litigation.

How should you study this area?

Session
Session 1
Focus
Learn the seven-stage timeline
Proof you are ready
Put authority, scope, appraisal, offer, complaint, litigation, payment, and possession in order for ten mixed fact patterns.
Session
Session 2
Focus
Build a title-party map
Proof you are ready
For eight parcels, identify owners, tenants, mortgages, liens, easements, contract purchasers, unknown parties, service needs, and possible award claims.
Session
Session 3
Focus
Separate right to take from compensation
Proof you are ready
Sort 20 disputes into authority, public use, necessity, procedure, valuation, project influence, remainder damage, or allocation.
Session
Session 4
Focus
Work the valuation date and partial taking
Proof you are ready
Analyze 12 scenarios for complaint date, delay rule, project influence, interest acquired, highest and best use, remainder damage, benefit, and cure.
Session
Session 5
Focus
Compare ordinary and quick-take tracks
Proof you are ready
Draw both timelines and label authority, preliminary hearing, deposit, early possession, final trial, judgment, additional payment, and refund treatment.
Session
Session 6
Focus
Run the C-A-S-E-F-I-L-E map
Proof you are ready
Score at least 90 percent and locate every miss in condemnor, acquisition, title search, evidence, filing, possession, judgment, or explanation.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

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Questions students ask about What Is Condemnation? Illinois Real Estate Exam Guide

What is condemnation in real estate?

Condemnation is the legal process through which an authorized condemning authority exercises eminent domain to acquire or damage private property for public use. The proceeding addresses authority, public use, necessity, affected interests, just compensation, payment, and the transfer of title or possession.

How is condemnation different from eminent domain?

Eminent domain is the legal power to take or damage private property for public use with just compensation. Condemnation is the procedure used to exercise that power. The exam often tests this as power versus process.

Is condemnation always about an unsafe building?

No. In eminent-domain questions, condemnation means a compelled property-acquisition proceeding. A municipality can also condemn an unsafe building for occupancy or code-enforcement purposes under police power. The word is the same, but the legal action and result are different.

Does a condemning authority have to try to buy the property first?

Condemning authorities commonly appraise, make an offer, and attempt an acquisition by agreement before filing. Section 10-5-10 describes circumstances in which a complaint may be filed, including when compensation cannot be agreed upon and several situations in which agreement or conveyance cannot be completed. Exact prefiling duties depend on the authority, project, and applicable law.

Where is an Illinois condemnation complaint filed?

Section 10-5-10 provides for an authorized party to apply to the circuit court of the county where the property, or any part of it, is located. The complaint and related pleadings identify the authority, public purpose, property, interests, and relief sought.

How is compensation determined in an Illinois condemnation?

Article I, section 15 of the Illinois Constitution protects just compensation and provides for jury determination as provided by law. Under section 10-5-5, a party must make a timely jury demand under the applicable procedure; otherwise the court can try compensation without a jury. Appraisers and other admissible evidence support the valuation.

What valuation date does Illinois use in condemnation?

Section 10-5-60 generally uses the date the condemnation complaint is filed, with limited statutory authority for a court to select a later date when trial begins more than two years afterward. Quick-take and non-quick-take cases have different endpoints for that possible adjustment.

Can Illinois take possession before the final compensation trial?

Only when the condemning authority has express quick-take authority and follows Article 20. Quick-take uses preliminary findings and a deposit to permit earlier title or possession, followed by a final compensation determination. Ordinary eminent-domain authority does not automatically include this accelerated power.

Who receives a condemnation award when there is a mortgage or lease?

The property award and its allocation are separate issues. Owners, tenants, mortgagees, lienholders, contract purchasers, easement holders, and other parties may have claims based on their interests and governing documents. The court resolves entitlement to the deposited compensation under the Act and applicable law.

Where is condemnation tested on the Illinois broker exam?

The PSI Illinois Candidate Information Booklet effective June 24, 2026 tests the government's right to acquire land through eminent domain in National II.A.1, Land Use Controls. Condemnation can also appear in valuation, title, easement, disclosure, and transaction questions.

Are these official PSI questions or legal advice?

No. The questions are original, and the guide is exam preparation based on primary sources reviewed through August 1, 2026. Condemnation deadlines and valuation consequences can be substantial. Anyone facing an actual notice, offer, complaint, or quick-take petition should consult qualified Illinois counsel promptly.

Primary sources

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