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.