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Illinois Closes the Squatter Loophole in 2026

In July of 2025, Governor Pritzker signed Senate Bill 1563 into law, which will take effect January 1, 2026. What is being called the “Squatter Bill” is a significant change to Illinois law because it establishes a clear distinction between lawful tenants and unlawful squatters, which will now allow Illinois law enforcement to enforce criminal trespassing charges against unlawful squatters.

Historically, squatters in Illinois were treated as tenants under Illinois law, forcing property owners into an often-lengthy eviction process against persons with no legal right to occupy the property. Owners could not just call the police if they found a squatter at their property because the matter was considered civil in nature—not criminal. For decades, squatters exploited this legal loophole while property owners paid the price of eviction costs, lost income, and loss of access to their rightful property, as squatters were permitted to remain in the property during the months-long eviction process.

As of January 1, 2026, however, the Squatter Bill amends 735 ILCS 5/9-102 to specify that law enforcement officials are no longer prevented by Illinois eviction laws from arresting or removing squatters under the criminal trespass provisions of the Illinois Criminal Code (720 ILCS 5/21-3). Upon notice to the squatter by the owner and law enforcement’s confirmation of the owner’s legal control of the property and proof of ownership, police will be able to forcibly remove squatters without the need for a civil eviction filing. Criminal trespass is a misdemeanor under Illinois law, and criminal trespassers are additionally liable for money damages, court costs, and attorneys’ fees incurred as a result of their trespass.

Senate Bill 1563 marks a triumph for property owners in Illinois, restoring justice for future owners being victimized by criminal squatters.