There are risks to buying a condominium in an existing condominium association, as the financial condition of the association will determine whether future maintenance and replacement needs of the condominium property will require large future special assessments. Because of this, the Illinois legislature created section 22.1 of the Condominium Property Act.
Under section 22.1, a condominium unit purchaser may request and the seller must obtain from the condominium board copies of the declaration and by laws and any rules and regulations and information about any pending lawsuits or judgments, as well as the following:
1. A statement of any liens, including a statement of the account of the unit being purchased setting forth the amounts of unpaid assessments and other charges.
2. A statement of any capital expenditures anticipated by the association within the current or succeeding two fiscal years.
3. 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.
4. A copy of the statement of financial condition of the association for the last fiscal year for which such statement is available.
5. A statement setting forth what insurance coverage is provided for all unit owners by the association.
Feel free to contact an Illinois attorney experienced in handling all aspects of real estate closings for both buyers and sellers at Logan Law, LLC if you have questions about condominium law or the sale of your Chicago area real estate or any other area of the laws governing the purchase or sale of real estate.
The Illinois Condominium Property Act and the Chicago Condominiums Ordinance require condominium associations to comply with requests of unit owners to review Association records within thirty (30) days of written request for the records. Both laws provide that a wrongful failure or refusal to produce the records will entitle the unit owner to reimbursement of the unit owner’s attorney fees if the unit owner is forced to retain an attorney to obtain access to the records.
The Chicago Ordinance permits the unit owner to inspect the Association’s books and records of account for the previous ten (10) years, including but not limited to itemized and detailed records of all receipts and expenditures. The Ordinance does not require the unit owner to state any purpose in order to obtain access to the records.
In the case of the Illinois Condominium Property Act, records are divided into two categories. The first category, which includes the association’s declaration and by laws, articles of incorporation, meeting minutes and insurance policies, is freely available for inspection by unit owners and does not require that the inquisitive owner state any reason for the request. The right of a unit owner to inspect other documents of the association requires that the unit owner provide the association “a proper purpose” for the inspection. In the case of those other records, the unit owner must submit a written request for the records “stating with particularity the records sought to be examined and a proper purpose for the request”.
Logan Law, LLC condominium attorneys have represented Illinois condominium associations for forty five years and have a depth of experience and knowledge of Illinois condominium law. Feel free to contact a Logan Law, LLC attorney whenever you need an attorney experienced in condominium or community association law.