Home

Real Estate

CONDOMINIUM PURCHASES/SALES:

CONTINUED FROM THE HOME PAGE

Under 765 ILCS 605/22.1(a), a "prospective purchaser" is entitled to review, upon demand, the following information:

(1) A copy of the Declaration, by-laws, other condominium instruments and any rules and regulations. 

(2) A statement of any liens, including a statement of the account of the unit setting forth the amounts of unpaid assessments and other charges due and owing as authorized and limited by the provisions of Section 9 of this Act or the condominium instruments.

(3) A statement of any capital expenditures anticipated by the unit owner's association within the current or succeeding two fiscal years.

(4) A statement of the status and amount of any reserve for replacement fund and any portion of such fund earmarked for any specified project by the Board of Managers.

(5) A copy of the statement of financial condition of the unit owner's association for the last fiscal year for which such statement is available.

(6) A statement of the status of any pending suits or judgments in which the unit owner's association is a party.

(7) A statement setting forth what insurance coverage is provided for all unit owners by the unit owner's association.

(8) A statement that any improvements or alterations made to the unit, or the limited common elements assigned thereto, by the prior unit owner are in good faith believed to be in compliance with the condominium instruments.

(9) The identity and mailing address of the principal officer of the unit owner's association or of the other officer or agent as is specifically designated to receive notices.

   As a purchaser contracting to purchase a condominium unit from a unit owner other than the developer, you should always ask the seller to provide you and your attorney with the information specified above, so that your attorney may assist you in making the most informed decision possible about your purchase. Communicate with your attorney early and be sure your attorney confirms in writing that approval of the contract is contingent upon your review and acceptance of such information.

   If you are a seller, plan ahead to obtain the items which may be potentially requested of you. Since the law requires a condominium association to furnish such information within thirty (30) days of a written request from the unit owner, it is imperative that, at the time you decide to sell your condominium, you submit your request in writing to the designated agent of the condominium association. This way, you are prepared to produce any portion of this information upon demand, or at least within a short period of time thereafter, and you will avoid delays that may lose a deal or stall a closing.

   Condominium associations and members may be directly affected by this law. Take it very seriously. In situations where a condominium association provides a prospective buyer with inaccurate financial data, such as the current balance of special assessments due, the purchaser has the right to rely upon that information. The Board or perhaps members may be exposed to liability resulting from the misrepresentation.

   So, whether you are a buyer, a seller or the condominium association, this information and adherence to the Illinois law is very important to the decisions you make and how you conduct yourselves.

   If you would like more information about real estate sales and purchases or this Illinois law, contact Scott Sherman at scott@mshermanlawoffice.com