Bill Text: IL HB3955 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title:

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-03-15 - Rule 19(a) / Re-referred to Rules Committee [HB3955 Detail]

Download: Illinois-2009-HB3955-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB3955 Introduced 2/26/2009, by Rep. Harry Osterman SYNOPSIS AS INTRODUCED:
765 ILCS 605/2 from Ch. 30, par. 302
765 ILCS 605/9 from Ch. 30, par. 309
765 ILCS 605/18 from Ch. 30, par. 318
765 ILCS 605/18.4 from Ch. 30, par. 318.4
765 ILCS 605/18.5 from Ch. 30, par. 318.5
765 ILCS 605/22 from Ch. 30, par. 322
765 ILCS 605/22.1 from Ch. 30, par. 322.1
765 ILCS 605/33 new
Amends the Condominium Property Act. Provides that Board of Managers meeting is a gathering of a quorum of Board Members to conduct business means acting or voting, not simple discussion (instead of to conduct business). Provides that upon filing any action to foreclose a lien on a condominium unit, the mortgagee shall be responsible for all assessments accruing beginning with the month after the month in which the action was filed. Provides that a unit owner who prevails in a Civil action brought to enforce the Act or the condominium instruments may recover damages of at least $1000, which shall be trebled by the court, if there is a showing by clear and convincing evidence that the wrongful actions complained of were willful and wanton and without legal justification, provided that the unit owner obtained a written opinion from an Illinois attorney that the owner had a colorable claim and the owner gave notice of the intent to file the action at least 60 days before filing. Provides a form of financial questions that a unit owner may pose to an association. Provides for a developer to place in escrow an amount equal to 20% of the aggregate initial sale prices of all units to address common element deficiencies. Makes other changes. Effective immediately.
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A BILL FOR
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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Condominium Property Act is amended by
changing Sections 2, 9, 18, 18.4, 18.5, 22, and 22.1 and by
adding Section 33 as follows:
(765 ILCS 605/2) (from Ch. 30, par. 302)
Sec. 2. Definitions. As used in this Act, unless the
context otherwise requires:
(a) "Declaration" means the instrument by which the
property is submitted to the provisions of this Act, as
hereinafter provided, and such declaration as from time to time
amended.
(b) "Parcel" means the lot or lots, tract or tracts of
land, described in the declaration, submitted to the provisions
of this Act.
(c) "Property" means all the land, property and space
comprising the parcel, all improvements and structures
erected, constructed or contained therein or thereon,
including the building and all easements, rights and
appurtenances belonging thereto, and all fixtures and
equipment intended for the mutual use, benefit or enjoyment of
the unit owners, submitted to the provisions of this Act.

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(d) "Unit" means a part of the property designed and
intended for any type of independent use.
(e) "Common Elements" means all portions of the property
except the units, including limited common elements unless
otherwise specified.
(f) "Person" means a natural individual, corporation,
partnership, trustee or other legal entity capable of holding
title to real property.
(g) "Unit Owner" means the person or persons whose estates
or interests, individually or collectively, aggregate fee
simple absolute ownership of a unit, or, in the case of a
leasehold condominium, the lessee or lessees of a unit whose
leasehold ownership of the unit expires simultaneously with the
lease described in item (x) of this Section.
(h) "Majority" or "majority of the unit owners" means the
owners of more than 50% in the aggregate in interest of the
undivided ownership of the common elements. Any specified
percentage of the unit owners means such percentage in the
aggregate in interest of such undivided ownership. "Majority"
or "majority of the members of the board of managers" means
more than 50% of the total number of persons constituting such
board pursuant to the bylaws. Any specified percentage of the
members of the board of managers means that percentage of the
total number of persons constituting such board pursuant to the
bylaws.
(i) "Plat" means a plat or plats of survey of the parcel

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and of all units in the property submitted to the provisions of
this Act, which may consist of a three-dimensional horizontal
and vertical delineation of all such units.
(j) "Record" means to record in the office of the recorder
or, whenever required, to file in the office of the Registrar
of Titles of the county wherein the property is located.
(k) "Conversion Condominium" means a property which
contains structures, excepting those newly constructed and
intended for condominium ownership, which are, or have
previously been, wholly or partially occupied before recording
of condominium instruments by persons other than those who have
contracted for the purchase of condominiums.
(l) "Condominium Instruments" means all documents and
authorized amendments thereto recorded pursuant to the
provisions of the Act, including the declaration, bylaws and
plat.
(m) "Common Expenses" means the proposed or actual expenses
affecting the property, including reserves, if any, lawfully
assessed by the Board of Managers of the Unit Owner's
Association.
(n) "Reserves" means those sums paid by unit owners which
are separately maintained by the board of managers for purposes
specified by the board of managers or the condominium
instruments.
(o) "Unit Owners' Association" or "Association" means the
association of all the unit owners, acting pursuant to bylaws

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through its duly elected board of managers.
(p) "Purchaser" means any person or persons other than the
Developer who purchase a unit in a bona fide transaction for
value.
(q) "Developer" means any person who submits property
legally or equitably owned in fee simple by the developer, or
leased to the developer under a lease described in item (x) of
this Section, to the provisions of this Act, or any person who
offers units legally or equitably owned in fee simple by the
developer, or leased to the developer under a lease described
in item (x) of this Section, for sale in the ordinary course of
such person's business, including any successor or successors
to such developers' entire interest in the property other than
the purchaser of an individual unit.
(r) "Add-on Condominium" means a property to which
additional property may be added in accordance with condominium
instruments and this Act.
(s) "Limited Common Elements" means a portion of the common
elements so designated in the declaration as being reserved for
the use of a certain unit or units to the exclusion of other
units, including but not limited to balconies, terraces, patios
and parking spaces or facilities.
(t) "Building" means all structures, attached or
unattached, containing one or more units.
(u) "Master Association" means an organization described
in Section 18.5 whether or not it is also an association

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described in Section 18.3.
(v) "Developer Control" means such control at a time prior
to the election of the Board of Managers provided for in
Section 18.2(b) of this Act.
(w) "Meeting of Board of Managers or Board of Master
Association" means any gathering of a quorum of the members of
the Board of Managers or Board of the Master Association held
for the purpose of conducting board business, provided that
"conducting board business" means proposing, making or taking
action or voting on matters, but not simply or exclusively
discussing matters.
(x) "Leasehold Condominium" means a property submitted to
the provisions of this Act which is subject to a lease, the
expiration or termination of which would terminate the
condominium and the lessor of which is (i) exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code of 1986,
as amended, (ii) a limited liability company whose sole member
is exempt from taxation under Section 501 (c)(3) of the
Internal Revenue Code of 1986, as amended, or (iii) a Public
Housing Authority created pursuant to the Housing Authorities
Act that is located in a municipality having a population in
excess of 1,000,000 inhabitants.
(Source: P.A. 93-474, eff. 8-8-03.)
(765 ILCS 605/9) (from Ch. 30, par. 309)
Sec. 9. Sharing of expenses - Lien for nonpayment.

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(a) All common expenses incurred or accrued prior to the
first conveyance of a unit shall be paid by the developer, and
during this period no common expense assessment shall be
payable to the association. It shall be the duty of each unit
owner including the developer to pay his proportionate share of
the common expenses commencing with the first conveyance. The
proportionate share shall be in the same ratio as his
percentage of ownership in the common elements set forth in the
declaration.
(b) The condominium instruments may provide that common
expenses for insurance premiums be assessed on a basis
reflecting increased charges for coverage on certain units.
(c) Budget and reserves.
(1) The board of managers shall prepare and distribute
to all unit owners a detailed proposed annual budget,
setting forth with particularity all anticipated common
expenses by category as well as all anticipated assessments
and other income. The initial budget and common expense
assessment based thereon shall be adopted prior to the
conveyance of any unit. The budget shall also set forth
each unit owner's proposed common expense assessment.
(2) All budgets adopted by a board of managers on or
after July 1, 1990 shall provide for reasonable reserves
for capital expenditures and deferred maintenance for
repair or replacement of the common elements. To determine
the amount of reserves appropriate for an association, the

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board of managers shall take into consideration the
following: (i) the repair and replacement cost, and the
estimated useful life, of the property which the
association is obligated to maintain, including but not
limited to structural and mechanical components, surfaces
of the buildings and common elements, and energy systems
and equipment; (ii) the current and anticipated return on
investment of association funds; (iii) any independent
professional reserve study which the association may
obtain; (iv) the financial impact on unit owners, and the
market value of the condominium units, of any assessment
increase needed to fund reserves; and (v) the ability of
the association to obtain financing or refinancing.
(3) Notwithstanding the provisions of this subsection
(c), an association without a reserve requirement in its
condominium instruments may elect to waive in whole or in
part the reserve requirements of this Section by a vote of
2/3 of the total votes of the association. Any association
having elected under this paragraph (3) to waive the
provisions of subsection (c) may by a vote of 2/3 of the
total votes of the association elect to again be governed
by the requirements of subsection (c).
(4) In the event that an association elects to waive
all or part of the reserve requirements of this Section,
that fact must be disclosed after the meeting at which the
waiver occurs by the association in the financial

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statements of the association and, highlighted in bold
print, in the response to any request of a prospective
purchaser for the information prescribed under Section
22.1; and no member of the board of managers or the
managing agent of the association shall be liable, and no
cause of action may be brought for damages against these
parties, for the lack or inadequacy of reserve funds in the
association budget.
(d) (Blank).
(e) The condominium instruments may provide for the
assessment, in connection with expenditures for the limited
common elements, of only those units to which the limited
common elements are assigned.
(f) Payment of any assessment shall be in amounts and at
times determined by the board of managers.
(g) Lien.
(1) If any unit owner shall fail or refuse to make any
payment of the common expenses or the amount of any unpaid
fine when due, the amount thereof together with any
interest, late charges, reasonable attorney fees incurred
enforcing the covenants of the condominium instruments,
rules and regulations of the board of managers, or any
applicable statute or ordinance, and costs of collections
shall constitute a lien on the interest of the unit owner
in the property prior to all other liens and encumbrances,
recorded or unrecorded, except only (a) taxes, special

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assessments and special taxes theretofore or thereafter
levied by any political subdivision or municipal
corporation of this State and other State or federal taxes
which by law are a lien on the interest of the unit owner
prior to preexisting recorded encumbrances thereon and (b)
encumbrances on the interest of the unit owner recorded
prior to the date of such failure or refusal which by law
would be a lien thereon prior to subsequently recorded
encumbrances. Any action brought to extinguish the lien of
the association shall include the association as a party.
(2) With respect to encumbrances executed prior to
August 30, 1984 or encumbrances executed subsequent to
August 30, 1984 which are neither bonafide first mortgages
nor trust deeds and which encumbrances contain a statement
of a mailing address in the State of Illinois where notice
may be mailed to the encumbrancer thereunder, if and
whenever and as often as the manager or board of managers
shall send, by United States certified or registered mail,
return receipt requested, to any such encumbrancer at the
mailing address set forth in the recorded encumbrance a
statement of the amounts and due dates of the unpaid common
expenses with respect to the encumbered unit, then, unless
otherwise provided in the declaration or bylaws, the prior
recorded encumbrance shall be subject to the lien of all
unpaid common expenses with respect to the unit which
become due and payable within a period of 90 days after the

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date of mailing of each such notice.
(3) The purchaser of a condominium unit at a judicial
foreclosure sale, or a mortgagee who receives title to a
unit by deed in lieu of foreclosure or judgment by common
law strict foreclosure or otherwise takes possession
pursuant to court order under the Illinois Mortgage
Foreclosure Law, shall have the duty to pay the unit's
proportionate share of the common expenses for the unit
assessed from and after the first day of the month after
the date of the judicial foreclosure sale, delivery of the
deed in lieu of foreclosure, entry of a judgment in common
law strict foreclosure, or taking of possession pursuant to
such court order. Such payment confirms the extinguishment
of any lien created pursuant to paragraph (1) or (2) of
this subsection (g) by virtue of the failure or refusal of
a prior unit owner to make payment of common expenses,
where the judicial foreclosure sale has been confirmed by
order of the court, a deed in lieu thereof has been
accepted by the lender, or a consent judgment has been
entered by the court.
(4) After filing an action to foreclose its lien on a
condominium unit, the mortgagee shall be responsible for
all assessments accruing from and after the first day of
the month after the filing of the action up to the date of
the judicial foreclosure sale, and unless the purchaser at
the judicial foreclosure sale is a person other than the

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mortgagee, the mortgagee's responsibility for assessments
shall continue until title to the unit is transferred. The
purchaser of a condominium unit at a judicial foreclosure
sale, other than a mortgagee, who takes possession of a
condominium unit pursuant to a court order or a purchaser
who acquires title from a mortgagee shall have the duty to
pay the proportionate share, if any, of the common expenses
for the unit which would have become due in the absence of
any assessment acceleration during the 6 months
immediately preceding institution of an action to enforce
the collection of assessments, and which remain unpaid by
the owner during whose possession the assessments accrued.
If the outstanding assessments are paid at any time during
any action to enforce the collection of assessments, the
purchaser shall have no obligation to pay any assessments
which accrued before he or she acquired title.
(5) The notice of sale of a condominium unit under
subsection (c) of Section 15-1507 of the Code of Civil
Procedure shall state that the purchaser of the unit other
than a mortgagee shall pay the assessments and the legal
fees required by subdivisions (g)(1) and (g)(4) of Section
9 of this Act. The statement of assessment account issued
by the association to a unit owner under subsection (i) of
Section 18 of this Act, and the disclosure statement issued
to a prospective purchaser under Section 22.1 of this Act,
shall state the amount of the assessments and the legal

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fees, if any, required by subdivisions (g)(1) and (g)(4) of
Section 9 of this Act.
(h) A lien for common expenses shall be in favor of the
members of the board of managers and their successors in office
and shall be for the benefit of all other unit owners. Notice
of the lien may be recorded by the board of managers, or if the
developer is the manager or has a majority of seats on the
board of managers and the manager or board of managers fails to
do so, any unit owner may record notice of the lien. Upon the
recording of such notice the lien may be foreclosed by an
action brought in the name of the board of managers in the same
manner as a mortgage of real property.
(i) Unless otherwise provided in the declaration, the
members of the board of managers and their successors in
office, acting on behalf of the other unit owners, shall have
the power to bid on the interest so foreclosed at the
foreclosure sale, and to acquire and hold, lease, mortgage and
convey it.
(j) Any encumbrancer may from time to time request in
writing a written statement from the manager or board of
managers setting forth the unpaid common expenses with respect
to the unit covered by his encumbrance. Unless the request is
complied with within 20 days, all unpaid common expenses which
become due prior to the date of the making of such request
shall be subordinate to the lien of the encumbrance. Any
encumbrancer holding a lien on a unit may pay any unpaid common

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expenses payable with respect to the unit, and upon payment the
encumbrancer shall have a lien on the unit for the amounts paid
at the same rank as the lien of his encumbrance.
(k) Nothing in Public Act 83-1271 is intended to change the
lien priorities of any encumbrance created prior to August 30,
1984.
(Source: P.A. 94-1049, eff. 1-1-07.)
(765 ILCS 605/18) (from Ch. 30, par. 318)
Sec. 18. Contents of bylaws. The bylaws shall provide for
at least the following:
(a) (1) The election from among the unit owners of a board
of managers, the number of persons constituting such board,
and that the terms of at least one-third of the members of
the board, shall expire annually and that all members of
the board shall be elected at large. If there are multiple
owners of a single unit, only one of the multiple owners
shall be eligible to serve as a member of the board at any
one time.
(2) the powers and duties of the board;
(3) the compensation, if any, of the members of the
board;
(4) the method of removal from office of members of the
board;
(5) that the board may engage the services of a manager
or managing agent;

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(6) that each unit owner shall receive, at least 30
days prior to the adoption thereof by the board of
managers, a copy of the proposed annual budget together
with an indication of which portions are intended for
reserves, capital expenditures or repairs or payment of
real estate taxes;
(7) that the board of managers shall annually make
available within 120 days of close of the fiscal year
supply to all unit owners an itemized accounting (for
associations with 30 or more units, the accounting shall
include a balance sheet and income statement) of the common
expenses for the preceding year actually incurred or paid,
together with an indication of which portions were for
reserves, capital expenditures or repairs or payment of
real estate taxes and with a tabulation of the amounts
collected pursuant to the budget or assessment, and showing
the net excess or deficit of income over expenditures plus
reserves;
(8) (i) that each unit owner shall receive notice, in
the same manner as is provided in this Act for membership
meetings, of any meeting of the board of managers
concerning the adoption of the proposed annual budget and
regular assessments pursuant thereto or to adopt a separate
(special) assessment, (ii) that except as provided in
subsection (iv) below, if an adopted budget or any separate
assessment adopted by the board would result in the sum of

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all regular and separate assessments payable in the current
fiscal year exceeding 115% of the sum of all regular and
separate assessments payable during the preceding fiscal
year, the board of managers, upon written petition by unit
owners with 20 percent of the votes of the association
delivered to the board within 14 days of the board action,
shall call a meeting of the unit owners within 30 days of
the date of delivery of the petition to consider the budget
or separate assessment; unless a majority of the total
votes of the unit owners are cast at the meeting to reject
the budget or separate assessment, it is ratified, (iii)
that any common expense not set forth in the budget or any
increase in assessments over the amount adopted in the
budget shall be separately assessed against all unit
owners, (iv) that separate assessments for expenditures
relating to emergencies or mandated by law may be adopted
by the board of managers without being subject to unit
owner approval or the provisions of item (ii) above or item
(v) below. As used herein, "emergency" means an immediate
danger to the structural integrity of the common elements
or to the life, health, safety or property of the unit
owners, (v) that assessments for additions and alterations
to the common elements or to association-owned property not
included in the adopted annual budget, shall be separately
assessed and are subject to approval of two-thirds of the
total votes of all unit owners, (vi) that the board of

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managers may adopt separate assessments payable over more
than one fiscal year. With respect to multi-year
assessments not governed by items (iv) and (v), the entire
amount of the multi-year assessment shall be deemed
considered and authorized in the first fiscal year in which
the assessment is approved;
(9) that meetings of the board of managers shall be
open to any unit owner, except for the portion of any
meeting held (i) to discuss litigation when an action
against or on behalf of the particular association has been
filed and is pending in a court or administrative tribunal,
or when the board of managers finds that such an action is
probable or imminent, (ii) to consider information
regarding appointment, employment or dismissal of an
employee, or (iii) to discuss violations of rules and
regulations of the association or a unit owner's unpaid
share of common expenses; that any vote on these matters
shall be taken at a meeting or portion thereof open to any
unit owner; that any unit owner may record the proceedings
at meetings or portions thereof required to be open by this
Act by tape, film or other means; that the board may
prescribe reasonable rules and regulations to govern the
right to make such recordings, that notice of such meetings
shall be mailed or delivered at least 48 hours prior
thereto, unless a written waiver of such notice is signed
by the person or persons entitled to such notice pursuant

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to the declaration, bylaws, other condominium instrument,
or provision of law other than this subsection before the
meeting is convened, and that copies of notices of meetings
of the board of managers shall be posted in entranceways,
elevators, or other conspicuous places in the condominium
at least 48 hours prior to the meeting of the board of
managers except where there is no common entranceway for 7
or more units, the board of managers may designate one or
more locations in the proximity of these units where the
notices of meetings shall be posted;
(10) that the board shall meet at least 4 times
annually;
(11) that no member of the board or officer shall be
elected for a term of more than 2 years, but that officers
and board members may succeed themselves;
(12) the designation of an officer to mail and receive
all notices and execute amendments to condominium
instruments as provided for in this Act and in the
condominium instruments;
(13) the method of filling vacancies on the board which
shall include authority for the remaining members of the
board to fill the vacancy by two-thirds vote until the next
annual meeting of unit owners or for a period terminating
no later than 30 days following the filing of a petition
signed by unit owners holding 20% of the votes of the
association requesting a meeting of the unit owners to fill

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the vacancy for the balance of the term, and that a meeting
of the unit owners shall be called for purposes of filling
a vacancy on the board no later than 30 days following the
filing of a petition signed by unit owners holding 20% of
the votes of the association requesting such a meeting, and
the method of filling vacancies among the officers that
shall include the authority for the members of the board to
fill the vacancy for the unexpired portion of the term;
(14) what percentage of the board of managers, if other
than a majority, shall constitute a quorum;
(15) provisions concerning notice of board meetings to
members of the board;
(16) the board of managers may not enter into a
contract with a current board member or with a corporation
or partnership in which a board member or a member of the
board member's immediate family has 25% or more interest,
unless notice of intent to enter the contract is given to
unit owners within 20 days after a decision is made to
enter into the contract and the unit owners are afforded an
opportunity by filing a petition, signed by 20% of the unit
owners, for an election to approve or disapprove the
contract; such petition shall be filed within 20 days after
such notice and such election shall be held within 30 days
after filing the petition; for purposes of this subsection,
a board member's immediate family means the board member's
spouse, parents, and children;

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(17) that the board of managers may disseminate to unit
owners biographical and background information about
candidates for election to the board if (i) reasonable
efforts to identify all candidates are made and all
candidates are given an opportunity to include
biographical and background information in the information
to be disseminated; and (ii) the board does not express a
preference in favor of any candidate;
(18) any proxy distributed for board elections by the
board of managers gives unit owners the opportunity to
designate any person as the proxy holder, and gives the
unit owner the opportunity to express a preference for any
of the known candidates for the board or to write in a
name;
(19) that special meetings of the board of managers can
be called by the president or 25% of the members of the
board; and
(20) that the board of managers may establish and
maintain a system of master metering of public utility
services and collect payments in connection therewith,
subject to the requirements of the Tenant Utility Payment
Disclosure Act.
(b) (1) What percentage of the unit owners, if other than
20%, shall constitute a quorum provided that, for
condominiums with 20 or more units, the percentage of unit
owners constituting a quorum shall be 20% unless the unit

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owners holding a majority of the percentage interest in the
association provide for a higher percentage;
(2) that the association shall have one class of
membership;
(3) that the members shall hold an annual meeting, one
of the purposes of which shall be to elect members of the
board of managers;
(4) the method of calling meetings of the unit owners;
(5) that special meetings of the members can be called
by the president, board of managers, or by 20% of unit
owners;
(6) that written notice of any membership meeting shall
be mailed or delivered giving members no less than 10 and
no more than 30 days notice of the time, place and purpose
of such meeting;
(7) that voting shall be on a percentage basis, and
that the percentage vote to which each unit is entitled is
the percentage interest of the undivided ownership of the
common elements appurtenant thereto, provided that the
bylaws may provide for approval by unit owners in
connection with matters where the requisite approval on a
percentage basis is not specified in this Act, on the basis
of one vote per unit;
(8) that, where there is more than one owner of a unit,
if only one of the multiple owners is present at a meeting
of the association, he is entitled to cast all the votes

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allocated to that unit, if more than one of the multiple
owners are present, the votes allocated to that unit may be
cast only in accordance with the agreement of a majority in
interest of the multiple owners, unless the declaration
expressly provides otherwise, that there is majority
agreement if any one of the multiple owners cast the votes
allocated to that unit without protest being made promptly
to the person presiding over the meeting by any of the
other owners of the unit;
(9)(A) that unless the Articles of Incorporation or the
bylaws otherwise provide, and except as provided in
subparagraph (B) of this paragraph (9) in connection with
board elections, a unit owner may vote by proxy executed in
writing by the unit owner or by his duly authorized
attorney in fact; that the proxy must bear the date of
execution and, unless the condominium instruments or the
written proxy itself provide otherwise, is invalid after 11
months from the date of its execution;
(B) that if a rule adopted at least 120 days before a
board election or the declaration or bylaws provide for
balloting as set forth in this subsection, unit owners may
not vote by proxy in board elections, but may vote only (i)
by submitting an association-issued ballot in person at the
election meeting or (ii) by submitting an
association-issued ballot to the association or its
designated agent by mail or other means of delivery

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specified in the declaration, bylaws, or rule; that the
ballots shall be mailed or otherwise distributed to unit
owners not less than 10 and not more than 30 days before
the election meeting, and the board shall give unit owners
not less than 21 days' prior written notice of the deadline
for inclusion of a candidate's name on the ballots; that
the deadline shall be no more than 7 days before the
ballots are mailed or otherwise distributed to unit owners;
that every such ballot must include the names of all
candidates who have given the board or its authorized agent
timely written notice of their candidacy and must give the
person casting the ballot the opportunity to cast votes for
candidates whose names do not appear on the ballot; that a
ballot received by the association or its designated agent
after the close of voting shall not be counted; that a unit
owner who submits a ballot by mail or other means of
delivery specified in the declaration, bylaws, or rule may
request and cast a ballot in person at the election
meeting, and thereby void any ballot previously submitted
by that unit owner;
(C) that if a written petition by unit owners with at
least 20% of the votes of the association is delivered to
the board within 14 days after the board's approval of a
rule adopted pursuant to subparagraph (B) of this paragraph
(9), the board shall call a meeting of the unit owners
within 30 days after the date of delivery of the petition;

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that unless a majority of the total votes of the unit
owners are cast at the meeting to reject the rule, the rule
is ratified;
(10) that the association may, upon adoption of the
appropriate rules by the board of managers, conduct
elections by secret ballot whereby the voting ballot is
marked only with the percentage interest for the unit and
the vote itself, provided that the board further adopt
rules to verify the status of the unit owner issuing a
proxy or casting a ballot; and further, that a candidate
for election to the board of managers or such candidate's
representative shall have the right to be present at the
counting of ballots at such election;
(11) that in the event of a resale of a condominium
unit the purchaser of a unit from a seller other than the
developer pursuant to an installment contract for purchase
shall during such times as he or she resides in the unit be
counted toward a quorum for purposes of election of members
of the board of managers at any meeting of the unit owners
called for purposes of electing members of the board, shall
have the right to vote for the election of members of the
board of managers and to be elected to and serve on the
board of managers unless the seller expressly retains in
writing any or all of such rights. In no event may the
seller and purchaser both be counted toward a quorum, be
permitted to vote for a particular office or be elected and

HB3955 - 24 - LRB096 06280 AJO 16363 b
serve on the board. Satisfactory evidence of the
installment contact shall be made available to the
association or its agents. For purposes of this subsection,
"installment contact" shall have the same meaning as set
forth in Section 1 (e) of "An Act relating to installment
contracts to sell dwelling structures", approved August
11, 1967, as amended;
(12) the method by which matters subject to the
approval of unit owners set forth in this Act, or in the
condominium instruments, will be submitted to the unit
owners at special membership meetings called for such
purposes; and
(13) that matters subject to the affirmative vote of
not less than 2/3 of the votes of unit owners at a meeting
duly called for that purpose, shall include, but not be
limited to:
(i) merger or consolidation of the association;
(ii) sale, lease, exchange, or other disposition
(excluding the mortgage or pledge) of all, or
substantially all of the property and assets of the
association; and
(iii) the purchase or sale of land or of units on
behalf of all unit owners.
(c) Election of a president from among the board of
managers, who shall preside over the meetings of the board of
managers and of the unit owners.

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(d) Election of a secretary from among the board of
managers, who shall keep the minutes of all meetings of the
board of managers and of the unit owners and who shall, in
general, perform all the duties incident to the office of
secretary.
(e) Election of a treasurer from among the board of
managers, who shall keep the financial records and books of
account.
(f) Maintenance, repair and replacement of the common
elements and payments therefor, including the method of
approving payment vouchers.
(g) An association with 30 or more units shall obtain and
maintain fidelity insurance covering persons who control or
disburse funds of the association for the maximum amount of
coverage available to protect funds in the custody or control
of the association plus the association reserve fund. All
management companies which are responsible for the funds held
or administered by the association shall maintain and furnish
to the association a fidelity bond for the maximum amount of
coverage available to protect funds in the custody of the
management company at any time. The association shall bear the
cost of the fidelity insurance and fidelity bond, unless
otherwise provided by contract between the association and a
management company. The association shall be the direct obligee
of any such fidelity bond. A management company holding reserve
funds of an association shall at all times maintain a separate

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account for each association, provided, however, that for
investment purposes, the Board of Managers of an association
may authorize a management company to maintain the
association's reserve funds in a single interest bearing
account with similar funds of other associations. The
management company shall at all times maintain records
identifying all moneys of each association in such investment
account. The management company may hold all operating funds of
associations which it manages in a single operating account but
shall at all times maintain records identifying all moneys of
each association in such operating account. Such operating and
reserve funds held by the management company for the
association shall not be subject to attachment by any creditor
of the management company.
For the purpose of this subsection a management company
shall be defined as a person, partnership, corporation, or
other legal entity entitled to transact business on behalf of
others, acting on behalf of or as an agent for a unit owner,
unit owners or association of unit owners for the purpose of
carrying out the duties, responsibilities, and other
obligations necessary for the day to day operation and
management of any property subject to this Act. For purposes of
this subsection, the term "fiduciary insurance coverage" shall
be defined as both a fidelity bond and directors and officers
liability coverage, the fidelity bond in the full amount of
association funds and association reserves that will be in the

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custody of the association, and the directors and officers
liability coverage at a level as shall be determined to be
reasonable by the board of managers, if not otherwise
established by the declaration or by laws.
Until one year after the effective date of this amendatory
Act of 1985, if a condominium association has reserves plus
assessments in excess of $250,000 and cannot reasonably obtain
100% fidelity bond coverage for such amount, then it must
obtain a fidelity bond coverage of $250,000.
(h) Method of estimating the amount of the annual budget,
and the manner of assessing and collecting from the unit owners
their respective shares of such estimated expenses, and of any
other expenses lawfully agreed upon.
(i) That upon 10 days notice to the manager or board of
managers and payment of a reasonable fee, any unit owner shall
be furnished a statement of his account setting forth the
amount of any unpaid assessments or other charges due and owing
from such owner.
(j) Designation and removal of personnel necessary for the
maintenance, repair and replacement of the common elements.
(k) Such restrictions on and requirements respecting the
use and maintenance of the units and the use of the common
elements, not set forth in the declaration, as are designed to
prevent unreasonable interference with the use of their
respective units and of the common elements by the several unit
owners.

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(l) Method of adopting and of amending administrative rules
and regulations governing the operation and use of the common
elements.
(m) The percentage of votes required to modify or amend the
bylaws, but each one of the particulars set forth in this
section shall always be embodied in the bylaws.
(n) (i) The provisions of this Act, the declaration,
bylaws, other condominium instruments, and rules and
regulations that relate to the use of the individual unit or
the common elements shall be applicable to any person leasing a
unit and shall be deemed to be incorporated in any lease
executed or renewed on or after the effective date of this
amendatory Act of 1984. (ii) With regard to any lease entered
into subsequent to the effective date of this amendatory Act of
1989, the unit owner leasing the unit shall deliver a copy of
the signed lease to the board or if the lease is oral, a
memorandum of the lease, not later than the date of occupancy
or 10 days after the lease is signed, whichever occurs first.
In addition to any other remedies, by filing an action jointly
against the tenant and the unit owner, an association may seek
to enjoin a tenant from occupying a unit or seek to evict a
tenant under the provisions of Article IX of the Code of Civil
Procedure for failure of the lessor-owner to comply with the
leasing requirements prescribed by this Section or by the
declaration, bylaws, and rules and regulations. The board of
managers may proceed directly against a tenant, at law or in

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equity, or under the provisions of Article IX of the Code of
Civil Procedure, for any other breach by tenant of any
covenants, rules, regulations or bylaws.
(o) The association shall have no authority to forbear the
payment of assessments by any unit owner.
(p) That when 30% or fewer of the units, by number, possess
over 50% in the aggregate of the votes in the association, any
percentage vote of members specified herein or in the
condominium instruments shall require the specified percentage
by number of units rather than by percentage of interest in the
common elements allocated to units that would otherwise be
applicable. For purposes of this subsection (p), when making a
determination of whether 30% or fewer of the units, by number,
possess over 50% in the aggregate of the votes in the
association, a unit shall not include a garage unit or a
storage unit.
(q) That a unit owner may not assign, delegate, transfer,
surrender, or avoid the duties, responsibilities, and
liabilities of a unit owner under this Act, the condominium
instruments, or the rules and regulations of the Association;
and that such an attempted assignment, delegation, transfer,
surrender, or avoidance shall be deemed void.
The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion of
a condominium instrument which contains provisions contrary to
these provisions shall be void as against public policy and

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ineffective. Any such instrument which fails to contain the
provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 95-624, eff. 6-1-08.)
(765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
Sec. 18.4. Powers and Duties of Board of Managers. The
board of managers shall exercise for the association all
powers, duties and authority vested in the association by law
or the condominium instruments except for such powers, duties
and authority reserved by law to the members of the
association. The powers and duties of the board of managers
shall include, but shall not be limited to, the following:
(a) To provide for the operation, care, upkeep,
maintenance, replacement and improvement of the common
elements. Nothing in this subsection (a) shall be deemed to
invalidate any provision in a condominium instrument
placing limits on expenditures for the common elements,
provided, that such limits shall not be applicable to
expenditures for repair, replacement, or restoration of
existing portions of the common elements. The term "repair,
replacement or restoration" means expenditures to
deteriorated or damaged portions of the property related to
the existing decorating, facilities, or structural or
mechanical components, interior or exterior surfaces, or
energy systems and equipment with the functional

HB3955 - 31 - LRB096 06280 AJO 16363 b
equivalent of the original portions of such areas.
Replacement of the common elements may result in an
improvement over the original quality of such elements or
facilities; provided that, unless the improvement is
mandated by law or is an emergency as defined in item (iv)
of subparagraph (8) of paragraph (a) of Section 18, if the
improvement results in a proposed expenditure exceeding 5%
of the annual budget, the board of managers, upon written
petition by unit owners with 20% of the votes of the
association delivered to the board within 14 days of the
board action to approve the expenditure, shall call a
meeting of the unit owners within 30 days of the date of
delivery of the petition to consider the expenditure.
Unless a majority of the total votes of the unit owners are
cast at the meeting to reject the expenditure, it is
ratified.
(b) To prepare, adopt and distribute the annual budget
for the property.
(c) To levy and expend assessments.
(d) To collect assessments from unit owners.
(e) To provide for the employment and dismissal of the
personnel necessary or advisable for the maintenance and
operation of the common elements.
(f) To obtain adequate and appropriate kinds of
insurance.
(g) To own, convey, encumber, lease, and otherwise deal

HB3955 - 32 - LRB096 06280 AJO 16363 b
with units conveyed to or purchased by it.
(h) To adopt and amend rules and regulations covering
the details of the operation and use of the property, after
a meeting of the unit owners called for the specific
purpose of discussing the proposed rules and regulations.
Notice of the meeting shall contain the full text of the
proposed rules and regulations, and the meeting shall
conform to the requirements of Section 18(b) of this Act,
except that no quorum is required at the meeting of the
unit owners unless the declaration, bylaws or other
condominium instrument expressly provides to the contrary.
However, no rule or regulation may impair any rights
guaranteed by the First Amendment to the Constitution of
the United States or Section 4 of Article I of the Illinois
Constitution including, but not limited to, the free
exercise of religion, nor may any rules or regulations
conflict with the provisions of this Act or the condominium
instruments. No rule or regulation shall prohibit any
reasonable accommodation for religious practices,
including the attachment of religiously mandated objects
to the front-door area of a condominium unit.
(i) To keep detailed, accurate records of the receipts
and expenditures affecting the use and operation of the
property.
(j) To have access to each unit from time to time as
may be necessary for the maintenance, repair or replacement

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of any common elements or for making emergency repairs
necessary to prevent damage to the common elements or to
other units.
(k) To pay real property taxes, special assessments,
and any other special taxes or charges of the State of
Illinois or of any political subdivision thereof, or other
lawful taxing or assessing body, which are authorized by
law to be assessed and levied upon the real property of the
condominium.
(l) To impose charges for late payment of a unit
owner's proportionate share of the common expenses, or any
other expenses lawfully agreed upon, and after notice and
an opportunity to be heard, to levy reasonable fines for
violation of the declaration, by-laws, and rules and
regulations of the association.
(m) Unless the condominium instruments expressly
provide to the contrary, by a majority vote of the entire
board of managers, to assign the right of the association
to future income from common expenses or other sources, and
to mortgage or pledge substantially all of the remaining
assets of the association.
(n) To record the dedication of a portion of the common
elements to a public body for use as, or in connection
with, a street or utility where authorized by the unit
owners under the provisions of Section 14.2.
(o) To record the granting of an easement for the

HB3955 - 34 - LRB096 06280 AJO 16363 b
laying of cable television cable where authorized by the
unit owners under the provisions of Section 14.3; to
obtain, if available and determined by the board to be in
the best interests of the association, cable television
service for all of the units of the condominium on a bulk
identical service and equal cost per unit basis; and to
assess and recover the expense as a common expense and, if
so determined by the board, to assess each and every unit
on the same equal cost per unit basis.
(p) To seek relief on behalf of all unit owners when
authorized pursuant to subsection (c) of Section 10 from or
in connection with the assessment or levying of real
property taxes, special assessments, and any other special
taxes or changes of the State of Illinois or of any
political subdivision thereof or of any lawful taxing or
assessing body.
(q) To reasonably accommodate the needs of a
handicapped unit owner as required by the federal Civil
Rights Act of 1968, the Human Rights Act and any applicable
local ordinances in the exercise of its powers with respect
to the use of common elements or approval of modifications
in an individual unit.
(r) To accept service of a notice of claim for purposes
of the Mechanics Lien Act on behalf of each respective
member of the Unit Owners' Association with respect to
improvements performed pursuant to any contract entered

HB3955 - 35 - LRB096 06280 AJO 16363 b
into by the Board of Managers or any contract entered into
prior to the recording of the condominium declaration
pursuant to this Act, for a property containing more than 8
units, and to distribute the notice to the unit owners
within 7 days of the acceptance of the service by the Board
of Managers. The service shall be effective as if each
individual unit owner had been served individually with
notice.
(s) In the event that a unit owner prevails in an
action brought to enforce the Act or the condominium
instruments, rules, or regulations against the board of
managers, by clear and convincing evidence, that the
wrongful act or omission by the board or members of the
board which formed the basis of the action was wrongful,
willful and wanton, and without any legal justification
either in law or fact, then the unit owner is entitled to
recover damages against the board or members of the board
thereof personally, and those damages shall not be less
than $1,000 per defendant and those damages shall be
trebled by the court, plus the unit owner's reasonable
attorney's fees and court costs; provided that at least 60
days prior to filing the action, the unit owner gave
written notice to the board or members of the board
specifying the nature and factual basis of the claim; and
provided further that the unit owner shall have obtained a
written opinion from an attorney licensed to practice in

HB3955 - 36 - LRB096 06280 AJO 16363 b
Illinois that the unit owner has a colorable claim based on
the facts alleged in the unit owner's notice to the board
or members of the board.
In the performance of their duties, the officers and
members of the board, whether appointed by the developer or
elected by the unit owners, shall exercise the care required of
a fiduciary of the unit owners.
The collection of assessments from unit owners by an
association, board of managers or their duly authorized agents
shall not be considered acts constituting a collection agency
for purposes of the Collection Agency Act.
The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion of
a condominium instrument which contains provisions contrary to
these provisions shall be void as against public policy and
ineffective. Any such instrument that fails to contain the
provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 94-384, eff. 1-1-06; 94-729, eff. 1-1-07.)
(765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
Sec. 18.5. Master Associations.
(a) If the declaration, other condominium instrument, or
other duly recorded covenants provide that any of the powers of
the unit owners associations are to be exercised by or may be
delegated to a nonprofit corporation or unincorporated

HB3955 - 37 - LRB096 06280 AJO 16363 b
association that exercises those or other powers on behalf of
one or more condominiums, or for the benefit of the unit owners
of one or more condominiums, such corporation or association
shall be a master association.
(b) There shall be included in the declaration, other
condominium instruments, or other duly recorded covenants
establishing the powers and duties of the master association
the provisions set forth in subsections (c) through (h).
In interpreting subsections (c) through (h), the courts
should interpret these provisions so that they are interpreted
consistently with the similar parallel provisions found in
other parts of this Act.
(c) Meetings and finances.
(1) Each unit owner of a condominium subject to the
authority of the board of the master association shall
receive, at least 30 days prior to the adoption thereof by
the board of the master association, a copy of the proposed
annual budget.
(2) The board of the master association shall annually
supply to all unit owners of condominiums subject to the
authority of the board of the master association an
itemized accounting of the common expenses for the
preceding year actually incurred or paid, together with a
tabulation of the amounts collected pursuant to the budget
or assessment, and showing the net excess or deficit of
income over expenditures plus reserves.

HB3955 - 38 - LRB096 06280 AJO 16363 b
(3) Each unit owner of a condominium subject to the
authority of the board of the master association shall
receive written notice mailed or delivered no less than 10
and no more than 30 days prior to any meeting of the board
of the master association concerning the adoption of the
proposed annual budget or any increase in the budget, or
establishment of an assessment.
(4) Meetings of the board of the master association
shall be open to any unit owner in a condominium subject to
the authority of the board of the master association,
except for the portion of any meeting held:
(A) to discuss litigation when an action against or
on behalf of the particular master association has been
filed and is pending in a court or administrative
tribunal, or when the board of the master association
finds that such an action is probable or imminent,
(B) to consider information regarding appointment,
employment or dismissal of an employee, or
(C) to discuss violations of rules and regulations
of the master association or unpaid common expenses
owed to the master association.
Any vote on these matters shall be taken at a meeting or
portion thereof open to any unit owner of a condominium subject
to the authority of the master association.
Any unit owner may record the proceedings at meetings
required to be open by this Act by tape, film or other means;

HB3955 - 39 - LRB096 06280 AJO 16363 b
the board may prescribe reasonable rules and regulations to
govern the right to make such recordings. Notice of meetings
shall be mailed or delivered at least 48 hours prior thereto,
unless a written waiver of such notice is signed by the persons
entitled to notice before the meeting is convened. Copies of
notices of meetings of the board of the master association
shall be posted in entranceways, elevators, or other
conspicuous places in the condominium at least 48 hours prior
to the meeting of the board of the master association. Where
there is no common entranceway for 7 or more units, the board
of the master association may designate one or more locations
in the proximity of these units where the notices of meetings
shall be posted.
(5) If the declaration provides for election by unit
owners of members of the board of directors in the event of
a resale of a unit in the master association, the purchaser
of a unit from a seller other than the developer pursuant
to an installment contract for purchase shall, during such
times as he or she resides in the unit, be counted toward a
quorum for purposes of election of members of the board of
directors at any meeting of the unit owners called for
purposes of electing members of the board, and shall have
the right to vote for the election of members of the board
of directors and to be elected to and serve on the board of
directors unless the seller expressly retains in writing
any or all of those rights. In no event may the seller and

HB3955 - 40 - LRB096 06280 AJO 16363 b
purchaser both be counted toward a quorum, be permitted to
vote for a particular office, or be elected and serve on
the board. Satisfactory evidence of the installment
contract shall be made available to the association or its
agents. For purposes of this subsection, "installment
contract" shall have the same meaning as set forth in
subsection (e) of Section 1 of the Dwelling Unit
Installment Contract Act.
(6) The board of the master association shall have the
authority to establish and maintain a system of master
metering of public utility services and to collect payments
in connection therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
(7) The board of the master association or a common
interest community association shall have the power, after
notice and an opportunity to be heard, to levy and collect
reasonable fines from members for violations of the
declaration, bylaws, and rules and regulations of the
master association or the common interest community
association. Nothing contained in this subdivision (7)
shall give rise to a statutory lien for unpaid fines.
(8) Other than attorney's fees, no fees pertaining to
the collection of a unit owner's financial obligation to
the Association, including fees charged by a manager or
managing agent, shall be added to and deemed a part of an
owner's respective share of the common expenses unless: (i)

HB3955 - 41 - LRB096 06280 AJO 16363 b
the managing agent fees relate to the costs to collect
common expenses for the Association; (ii) the fees are set
forth in a contract between the managing agent and the
Association; and (iii) the authority to add the management
fees to an owner's respective share of the common expenses
is specifically stated in the declaration or bylaws of the
Association.
(d) Records.
(1) The board of the master association shall maintain
the following records of the association and make them
available for examination and copying at convenient hours
of weekdays by any unit owners in a condominium subject to
the authority of the board or their mortgagees and their
duly authorized agents or attorneys:
(i) Copies of the recorded declaration, other
condominium instruments, other duly recorded covenants
and bylaws and any amendments, articles of
incorporation of the master association, annual
reports and any rules and regulations adopted by the
master association or its board shall be available.
Prior to the organization of the master association,
the developer shall maintain and make available the
records set forth in this subdivision (d)(1) for
examination and copying.
(ii) Detailed and accurate records in
chronological order of the receipts and expenditures

HB3955 - 42 - LRB096 06280 AJO 16363 b
affecting the common areas, specifying and itemizing
the maintenance and repair expenses of the common areas
and any other expenses incurred, and copies of all
contracts, leases, or other agreements entered into by
the master association, shall be maintained.
(iii) The minutes of all meetings of the master
association and the board of the master association
shall be maintained for not less than 7 years.
(iv) Ballots and proxies related thereto, if any,
for any election held for the board of the master
association and for any other matters voted on by the
unit owners shall be maintained for not less than one
year.
(v) Such other records of the master association as
are available for inspection by members of a
not-for-profit corporation pursuant to Section 107.75
of the General Not For Profit Corporation Act of 1986
shall be maintained.
(vi) With respect to units owned by a land trust,
if a trustee designates in writing a person to cast
votes on behalf of the unit owner, the designation
shall remain in effect until a subsequent document is
filed with the association.
(2) Where a request for records under this subsection
is made in writing to the board of managers or its agent,
failure to provide the requested record or to respond

HB3955 - 43 - LRB096 06280 AJO 16363 b
within 30 days shall be deemed a denial by the board of
directors.
(3) A reasonable fee may be charged by the master
association or its board for the cost of copying.
(4) If the board of directors fails to provide records
properly requested under subdivision (d)(1) within the
time period provided in subdivision (d)(2), the unit owner
may seek appropriate relief, including an award of
attorney's fees and costs.
(e) The board of directors shall have standing and capacity
to act in a representative capacity in relation to matters
involving the common areas of the master association or more
than one unit, on behalf of the unit owners as their interests
may appear.
(f) Administration of property prior to election of the
initial board of directors.
(1) Until the election, by the unit owners or the
boards of managers of the underlying condominium
associations, of the initial board of directors of a master
association whose declaration is recorded on or after
August 10, 1990, the same rights, titles, powers,
privileges, trusts, duties and obligations that are vested
in or imposed upon the board of directors by this Act or in
the declaration or other duly recorded covenant shall be
held and performed by the developer.
(2) The election of the initial board of directors of a

HB3955 - 44 - LRB096 06280 AJO 16363 b
master association whose declaration is recorded on or
after August 10, 1990, by the unit owners or the boards of
managers of the underlying condominium associations, shall
be held not later than 60 days after the conveyance by the
developer of 75% of the units, or 3 years after the
recording of the declaration, whichever is earlier. The
developer shall give at least 21 days notice of the meeting
to elect the initial board of directors and shall upon
request provide to any unit owner, within 3 working days of
the request, the names, addresses, and weighted vote of
each unit owner entitled to vote at the meeting. Any unit
owner shall upon receipt of the request be provided with
the same information, within 10 days of the request, with
respect to each subsequent meeting to elect members of the
board of directors.
(3) If the initial board of directors of a master
association whose declaration is recorded on or after
August 10, 1990 is not elected by the unit owners or the
members of the underlying condominium association board of
managers at the time established in subdivision (f)(2), the
developer shall continue in office for a period of 30 days,
whereupon written notice of his resignation shall be sent
to all of the unit owners or members of the underlying
condominium board of managers entitled to vote at an
election for members of the board of directors.
(4) Within 60 days following the election of a majority

HB3955 - 45 - LRB096 06280 AJO 16363 b
of the board of directors, other than the developer, by
unit owners, the developer shall deliver to the board of
directors:
(i) All original documents as recorded or filed
pertaining to the property, its administration, and
the association, such as the declaration, articles of
incorporation, other instruments, annual reports,
minutes, rules and regulations, and contracts, leases,
or other agreements entered into by the association. If
any original documents are unavailable, a copy may be
provided if certified by affidavit of the developer, or
an officer or agent of the developer, as being a
complete copy of the actual document recorded or filed.
(ii) A detailed accounting by the developer,
setting forth the source and nature of receipts and
expenditures in connection with the management,
maintenance and operation of the property, copies of
all insurance policies, and a list of any loans or
advances to the association which are outstanding.
(iii) Association funds, which shall have been at
all times segregated from any other moneys of the
developer.
(iv) A schedule of all real or personal property,
equipment and fixtures belonging to the association,
including documents transferring the property,
warranties, if any, for all real and personal property

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and equipment, deeds, title insurance policies, and
all tax bills.
(v) A list of all litigation, administrative
action and arbitrations involving the association, any
notices of governmental bodies involving actions taken
or which may be taken concerning the association,
engineering and architectural drawings and
specifications as approved by any governmental
authority, all other documents filed with any other
governmental authority, all governmental certificates,
correspondence involving enforcement of any
association requirements, copies of any documents
relating to disputes involving unit owners, and
originals of all documents relating to everything
listed in this subparagraph.
(vi) If the developer fails to fully comply with
this paragraph (4) within the 60 days provided and
fails to fully comply within 10 days of written demand
mailed by registered or certified mail to his or her
last known address, the board may bring an action to
compel compliance with this paragraph (4). If the court
finds that any of the required deliveries were not made
within the required period, the board shall be entitled
to recover its reasonable attorneys' fees and costs
incurred from and after the date of expiration of the
10 day demand.

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(5) With respect to any master association whose
declaration is recorded on or after August 10, 1990, any
contract, lease, or other agreement made prior to the
election of a majority of the board of directors other than
the developer by or on behalf of unit owners or underlying
condominium associations, the association or the board of
directors, which extends for a period of more than 2 years
from the recording of the declaration, shall be subject to
cancellation by more than 1/2 of the votes of the unit
owners, other than the developer, cast at a special meeting
of members called for that purpose during a period of 90
days prior to the expiration of the 2 year period if the
board of managers is elected by the unit owners, otherwise
by more than 1/2 of the underlying condominium board of
managers. At least 60 days prior to the expiration of the 2
year period, the board of directors, or, if the board is
still under developer control, then the board of managers
or the developer shall send notice to every unit owner or
underlying condominium board of managers, notifying them
of this provision, of what contracts, leases and other
agreements are affected, and of the procedure for calling a
meeting of the unit owners or for action by the underlying
condominium board of managers for the purpose of acting to
terminate such contracts, leases or other agreements.
During the 90 day period the other party to the contract,
lease, or other agreement shall also have the right of

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cancellation.
(6) The statute of limitations for any actions in law
or equity which the master association may bring shall not
begin to run until the unit owners or underlying
condominium board of managers have elected a majority of
the members of the board of directors.
(g) In the event of any resale of a unit in a master
association by a unit owner other than the developer, the owner
shall obtain from the board of directors and shall make
available for inspection to the prospective purchaser, upon
demand, the following:
(1) A copy of the declaration, other 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.
(3) A statement of any capital expenditures
anticipated by the association within the current or
succeeding 2 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 directors.
(5) A copy of the statement of financial condition of
the association for the last fiscal year for which such a
statement is available.
(6) A statement of the status of any pending suits or

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judgments in which the association is a party.
(7) A statement setting forth what insurance coverage
is provided for all unit owners by the association.
(8) A statement that any improvements or alterations
made to the unit, or any part of the common areas assigned
thereto, by the prior unit owner are in good faith believed
to be in compliance with the declaration of the master
association.
The principal officer of the unit owner's association or
such other officer as is specifically designated shall furnish
the above information when requested to do so in writing,
within 30 days of receiving the request.
A reasonable fee covering the direct out-of-pocket cost of
copying and providing such information may be charged by the
association or its board of directors to the unit seller for
providing the information.
(h) Errors and omissions.
(1) If there is an omission or error in the declaration
or other instrument of the master association, the master
association may correct the error or omission by an
amendment to the declaration or other instrument, as may be
required to conform it to this Act, to any other applicable
statute, or to the declaration. The amendment shall be
adopted by vote of two-thirds of the members of the board
of directors or by a majority vote of the unit owners at a
meeting called for that purpose, unless the Act or the

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declaration of the master association specifically
provides for greater percentages or different procedures.
(2) If, through a scrivener's error, a unit has not
been designated as owning an appropriate undivided share of
the common areas or does not bear an appropriate share of
the common expenses, or if all of the common expenses or
all of the common elements in the condominium have not been
distributed in the declaration, so that the sum total of
the shares of common areas which have been distributed or
the sum total of the shares of the common expenses fail to
equal 100%, or if it appears that more than 100% of the
common elements or common expenses have been distributed,
the error may be corrected by operation of law by filing an
amendment to the declaration, approved by vote of
two-thirds of the members of the board of directors or a
majority vote of the unit owners at a meeting called for
that purpose, which proportionately adjusts all percentage
interests so that the total is equal to 100%, unless the
declaration specifically provides for a different
procedure or different percentage vote by the owners of the
units and the owners of mortgages thereon affected by
modification being made in the undivided interest in the
common areas, the number of votes in the unit owners
association or the liability for common expenses
appertaining to the unit.
(3) If an omission or error or a scrivener's error in

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the declaration or other instrument is corrected by vote of
two-thirds of the members of the board of directors
pursuant to the authority established in subdivisions
(h)(1) or (h)(2) of this Section, the board, upon written
petition by unit owners with 20% of the votes of the
association or resolutions adopted by the board of managers
or board of directors of the condominium and common
interest community associations which select 20% of the
members of the board of directors of the master
association, whichever is applicable, received within 30
days of the board action, shall call a meeting of the unit
owners or the boards of the condominium and common interest
community associations which select members of the board of
directors of the master association within 30 days of the
filing of the petition or receipt of the condominium and
common interest community association resolution to
consider the board action. Unless a majority of the votes
of the unit owners of the association are cast at the
meeting to reject the action, or board of managers or board
of directors of condominium and common interest community
associations which select over 50% of the members of the
board of the master association adopt resolutions prior to
the meeting rejecting the action of the board of directors
of the master association, it is ratified whether or not a
quorum is present.
(4) The procedures for amendments set forth in this

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subsection (h) cannot be used if such an amendment would
materially or adversely affect property rights of the unit
owners unless the affected unit owners consent in writing.
This Section does not restrict the powers of the
association to otherwise amend the declaration, bylaws, or
other condominium instruments, but authorizes a simple
process of amendment requiring a lesser vote for the
purpose of correcting defects, errors, or omissions when
the property rights of the unit owners are not materially
or adversely affected.
(5) If there is an omission or error in the declaration
or other instruments that may not be corrected by an
amendment procedure set forth in subdivision (h)(1) or
(h)(2) of this Section, then the circuit court in the
county in which the master association is located shall
have jurisdiction to hear a petition of one or more of the
unit owners thereon or of the association, to correct the
error or omission, and the action may be a class action.
The court may require that one or more methods of
correcting the error or omission be submitted to the unit
owners to determine the most acceptable correction. All
unit owners in the association must be joined as parties to
the action. Service of process on owners may be by
publication, but the plaintiff shall furnish all unit
owners not personally served with process with copies of
the petition and final judgment of the court by certified

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mail, return receipt requested, at their last known
address.
(6) Nothing contained in this Section shall be
construed to invalidate any provision of a declaration
authorizing the developer to amend an instrument prior to
the latest date on which the initial membership meeting of
the unit owners must be held, whether or not it has
actually been held, to bring the instrument into compliance
with the legal requirements of the Federal National
Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Federal Housing Administration, the
United States Veterans Administration or their respective
successors and assigns.
(h-5) After filing an action to foreclosure its lien on a
unit in a common interest community, the mortgagee shall be
responsible for all assessments with regard to that unit
accruing from and after the first day of the month after the
filing of the action up to the date of the judicial foreclosure
sale and, unless the purchaser at the judicial foreclosure sale
is a person other than the mortgagee, the mortgagee's
responsibility for assessments shall continue until title to
the unit is transferred.
(i) The provisions of subsections (c) through (h) are
applicable to all declarations, other condominium instruments,
and other duly recorded covenants establishing the powers and
duties of the master association recorded under this Act. Any

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portion of a declaration, other condominium instrument, or
other duly recorded covenant establishing the powers and duties
of a master association which contains provisions contrary to
the provisions of subsection (c) through (h) shall be void as
against public policy and ineffective. Any declaration, other
condominium instrument, or other duly recorded covenant
establishing the powers and duties of the master association
which fails to contain the provisions required by subsections
(c) through (h) shall be deemed to incorporate such provisions
by operation of law.
(j) The provisions of subsections (c) through (h) and (h-5)
are applicable to all common interest community associations
and their unit owners for common interest community
associations which are subject to the provisions of Section
9-102(a)(8) of the Code of Civil Procedure. For purposes of
this subsection, the terms "common interest community" and
"unit owners" shall have the same meaning as set forth in
Section 9-102(c) of the Code of Civil Procedure.
(Source: P.A. 94-384, eff. 1-1-06.)
(765 ILCS 605/22) (from Ch. 30, par. 322)
Sec. 22. Full disclosure before sale. In relation to the
initial sale or offering for sale of any condominium unit, the
seller must make full disclosure of, and provide copies to the
prospective buyer of, the following information relative to the
condominium project:

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(a) the Declaration;
(b) the Bylaws of the association;
(c) a projected operating budget for the condominium unit
to be sold to the prospective buyer, including full details
concerning the estimated monthly payments for the condominium
unit, estimated monthly charges for maintenance or management
of the condominium property, and monthly charges for the use of
recreational facilities; and
(d) a floor plan of the unit apartment to be purchased by
the prospective buyer and the street address of the unit, if
any, and if the unit has no unique street address, the street
address of the project.
(e) in addition, any developer of a conversion condominium
shall include the following information:
(1) A specific statement of the amount of any initial
or special condominium fee due from the purchaser on or
before settlement of the purchase contract and the basis of
such fee;
(2) Information, if available, on the actual
expenditures made on all repairs, maintenance, operation,
or upkeep of the subject building or buildings within the
last 2 years, set forth tabularly with the proposed budget
of the condominium and cumulatively, broken down on a per
unit basis in proportion to the relative voting strengths
allocated to the units by the bylaws. If such building or
buildings have not been occupied for a period of 3 years

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then the information shall be set forth for the last 2 year
period such building or buildings have been occupied;
(3) A description of any provisions made in the budget for
reserves for capital expenditures and an explanation of the
basis for such reserves, or, if no provision is made for
such reserves, a statement to that effect;
For developments of more than 6 units for which the
notice of intent to convert is issued after the effective
date of this amendatory Act of 1979, an engineer's report
furnished by the developer as to the present condition of
all structural components and major utility installations
in the condominium, which statement shall include the
approximate dates of construction, installation, major
repairs and the expected useful life of such items,
together with the estimated cost (in current dollars) of
replacing such items; and
(5) Any release, warranty, certificate of insurance,
or surety required by Section 9.1.
All of the information required by this Section which is
available at the time shall be furnished to the prospective
buyer before execution of the contract for sale. Thereafter, no
changes or amendments may be made in any of the items furnished
to the prospective buyer which would materially affect the
rights of the buyer or the value of the unit without obtaining
the approval of at least 75% of the buyers then owning interest
in the condominium. If all of the information is not available

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at the time of execution of the contract for sale, then the
contract shall be voidable at option of the buyer at any time
up until 5 days after the last item of required information is
furnished to the prospective buyer, or until the closing of the
sale, whichever is earlier. Failure on the part of the seller
to make full disclosure as required by this Section shall
entitle the buyer to rescind the contract for sale at any time
before the closing of the contract and to receive a refund of
all deposit moneys paid with interest thereon at the rate then
in effect for interest on judgments.
A sale is not an initial sale for the purposes of this
Section if there is not a bona fide transfer of the ownership
and possession of the condominium unit for the purpose of
occupancy of such unit as the result of the sale or if the sale
was entered into for the purpose of avoiding the requirements
of this Section. The buyer in the first bona fide sale of any
condominium unit has the rights granted to buyers under this
Section. If the buyer in any sale of a condominium unit asserts
that such sale is the first bona fide sale of that unit, the
seller has the burden of proving that his interest was acquired
through a bona fide sale.
(Source: P.A. 91-616, eff. 8-19-99.)
(765 ILCS 605/22.1) (from Ch. 30, par. 322.1)
Sec. 22.1. (a) In the event of any resale of a condominium
unit by a unit owner other than the developer such owner shall

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obtain from the Board of Managers and shall make available for
inspection to the prospective purchaser, upon demand, the
following:
(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 approved by
the association's Board of Managers 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

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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.
The Board of Managers or its designated property manager
for the association shall only be required to respond to a
written inquiry from a unit owner for the information required
in paragraphs 1 through 9 of subsection (a) of this Section in
a form substantially similar to the standard form below:
"1. Are there any known liens against the Association?
If so, please provide details
2. Are there any reserves which have been previously
approved by the Board of Managers for specific projects
which are over $25,000? If so, please provide details.
3. Are there any capital expenditures approved by the
Board of Managers for the current or next 2 fiscal years
which will require a special assessment on the owners or an
increase in monthly assessments of more than 15% over the
prior year's monthly assessments? If so, please provide the
amount of the approved capital expenditure or the
percentage increase in monthly assessment for this unit
owner.
4. Are there any existing special assessments or loans

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for capital improvement projects pending against the
subject unit? If so, please provide details.
5. Are there any pending lawsuits or unpaid judgments
against the Association? If so, please provide details."
All documents or other information required to be disclosed
by this Section and which are available at the time shall be
provided to the unit owner within 30 days after receipt of the
written request.
Information shall be disclosed to the parties, other than
the unit owner, only upon written authorization of the unit
owner.
(b) The principal officer of the unit owner's association,
through its officers or designated property manager, or such
other officer as is specifically designated shall furnish the
above information when requested to do so in writing and within
30 days of the request.
(c) Within 15 days of the recording of a mortgage or trust
deed against a unit ownership given by the owner of that unit
to secure a debt, the owner shall provide in writing to inform
the Board of Managers of the unit owner's association, of the
identity of the lender together with a mailing address at which
the lender can receive notices from the association. If a unit
owner fails or refuses to inform the Board as required under
subsection (c) then that unit owner shall be liable to the
association for all costs, expenses and reasonable attorneys
fees and such other damages, if any, incurred by the

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association as a result of such failure or refusal.
A reasonable fee covering the costs direct out-of-pocket
cost of providing such information and copying may be charged
by the association or its Board of Managers to the unit seller
for providing such information.
(Source: P.A. 87-692.)
(765 ILCS 605/33 new)
Sec. 33. Developer escrow. To provide assurance to unit
owners that the developer will fulfill its obligations to the
association or the unit owners collectively with respect to
common element deficiencies for which the developer is
responsible, the developer shall establish an escrow in an
amount equal to 20% of the aggregate initial sale prices of all
units in the condominium, which escrow shall be kept separate
and apart from the developer's funds or the funds of any other
person and which funds shall be maintained at a federally
insured depository. The escrow shall be maintained for a period
of not less than 2 years after the election of the first unit
owner board as provided in subsection (b) of Section 18.2
unless sooner disbursed to or at the direction of the first
unit owner board.
The escrow shall not be deemed to impose any limitation on
the developer's obligation under any warranty or other legal
obligation. This escrow requirement cannot be waived by any
individual unit purchaser or unit owner. A developer who

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violates this Section shall be subject to an action by the
association, which shall be entitled to recover treble damages
and attorney's fees from the developer and, if the developer is
a trust, corporation, or limited liability entity, the
beneficiaries of the trust, shareholders of the corporation, or
members of the limited liability entity shall be jointly and
severally liable for the damages and fees due to a violation of
this Section.
Nothing contained herein shall apply to any municipality
which enacts an ordinance establishing a bond from a developer
to adequately protect against damages to public property.
Section 99. Effective date. This Act takes effect upon
becoming law.