When an owner sells a condominium unit in Illinois, Section 22.1 of the Condominium Property Act requires the seller to make certain association documents and information available to the buyer. The association provides most of it to the selling owner on request.
What is typically included
- The declaration, bylaws, and rules and regulations.
- The association's most recent financial statement and current budget.
- A statement of reserves and of any capital expenditures the board anticipates.
- Any unpaid assessments or charges against the unit, and any approved special assessments.
- Information about pending lawsuits and judgments involving the association.
- The association's insurance coverage.
What to read closely
Reserves. Low reserves in an older building can signal future special assessments. Special assessments. Contracts should say who pays assessments already approved. Litigation. Lawsuits against the association can affect lending. Leasing rules. Buyers planning to rent the unit need to confirm leasing is permitted and on what terms. Right of first refusal or approval. Some associations have one, and it can affect timing.
Timing
Under the standard contract, condominium documents are part of the attorney review and contingency schedule. Sellers should request them as soon as a listing is planned.
By Attorney Shara Kamal. General information for Chicago-area readers; not legal advice for a specific situation.