Bill Text: IL SB0885 | 2017-2018 | 100th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Repeals the Dwelling Structure Contract Act and the Dwelling Unit Installment Contract Act. Creates the Installment Sales Contract Act. Adds provisions governing: definitions; terms and conditions of installment sales contracts; applicability of other Acts; sales of condemned dwelling structures; repairs; account statements; transfer of payments; insurance proceeds; unlawful acts; waivers; and penalties. Makes corresponding changes in the Condominium Property Act. Amends the Code of Civil Procedure. Provides that a real estate installment contract for residential real estate is subject to the foreclosure provisions of the Code if the purchase price is to be paid in installments over a period in excess of one year (instead of 5 years) and the amount unpaid under the terms of the contract at the time of the filing of the foreclosure complaint, including principal and due and unpaid interest, at the rate prior to default, is less than 90% (instead of 80%) of the original purchase price of the real estate as stated in the contract. Effective January 1, 2018.

Spectrum: Partisan Bill (Democrat 22-1)

Status: (Passed) 2017-08-25 - Public Act . . . . . . . . . 100-0416 [SB0885 Detail]

Download: Illinois-2017-SB0885-Engrossed.html

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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 1. Short title. This Act may be cited as the
Installment Sales Contract Act.
Section 5. Definitions. As used in this Act, unless the
context otherwise requires:
"Amortization schedule" means a written schedule which
sets forth the date of each periodic payment, the amount of
each periodic payment that will be applied to the principal
balance and the resulting principal balance, and the amount of
each periodic payment that will be applied to any interest
charged, if applicable, pursuant to the contract.
"Balloon payment" means a payment, other than the initial
down payment, in which more than the ordinary periodic payment
is charged during the contract.
"Business day" means any calendar day except Saturday,
Sunday, or a State or federal holiday.
"Buyer" means the person who is seeking to obtain title to
a property by an installment sales contract or is obligated to
make payments to the seller pursuant to the contract.
"Date of sale" means the date that both the seller and
buyer have signed the written contract.

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"Dwelling structure" means any private home or residence or
any building or structure intended for residential use with not
less than one nor more than 4 residential dwelling units.
"Installment sales contract" or "contract" means any
contract or agreement, including a contract for deed, bond for
deed, or any other sale or legal device whereby a seller agrees
to sell and the buyer agrees to buy a dwelling structure, in
which the consideration for the sale is payable in installments
for a period of at least one year after the date of sale, and
the seller continues to have an interest or security for the
purchase price or otherwise in the property.
"Seller" means the owner of a legal or beneficial interest
in a dwelling structure, or the owner's agent, who utilizes an
installment sales contract to sell the dwelling structure.
Section 10. Terms and conditions of installment sales
contracts.
(a) The seller of residential real estate by installment
sales contract shall provide the buyer with a written contract
that complies with the requirements set forth in this Section.
(b) Until both parties have a copy of the executed contract
signed by the buyer and the seller with the signatures
notarized, either party has the right to rescind the contract,
in addition to all other remedies provided by this Act. Upon
rescission, pursuant to this Section, the seller shall refund
to the buyer all money paid to the seller as of the date of

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rescission.
(c) An installment sales contract for the sale of a
dwelling structure and any residential real estate subject to
the contract shall clearly and conspicuously disclose the
following:
(1) The address, permanent index number, and legal
description of the residential real estate subject to the
contract.
(2) The price of the dwelling structure and any
residential real estate subject to the contract.
(3) The amount, if any, of any down payment applied to
the price of the dwelling structure and any residential
real estate subject to the contract and the resulting
principal on the loan.
(4) The amount of the periodic payment, any grace
periods for late payments, late payment fees, and to whom,
where, and how the buyer should deliver each payment.
(5) The interest rate being charged, if any, expressed
only as an annual percentage rate.
(6) The term of the loan expressed in years and months
and the total number of periodic payments due.
(7) The amount, if any, of any balloon payments and
when each balloon payment is due.
(8) A statement outlining whether the seller or the
buyer is responsible for paying real estate taxes and
insurance and how responsibilities of the buyer and seller

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change based on the time period the dwelling or any
residential real estate subject to the contract is occupied
by the buyer and what percentage of the principal is paid
down. In all circumstances not defined in the disclosure
required by this subsection, the seller has the
responsibility for paying real estate taxes and insurance.
(9) The amount that will be charged periodically, if
any, for the first year to pay real estate taxes.
(10) The amount that will be charged periodically, if
any, for the first year to pay insurance.
(11) A statement that the amounts listed in items (9)
and (10) of this subsection are subject to change each
year.
(12) The fair cash value as defined in the Property Tax
Code and set forth on the real estate tax bill for the year
immediately prior to the sale, and the assessed value of
the property as set forth on the real estate tax bill for
the year immediately prior to the sale.
(13) The amount of real estate taxes for the year
immediately prior to the sale.
(14) Any unpaid amounts owing on prior real estate
taxes.
(15) The amount of the annual insurance payment for the
year immediately prior to the sale.
(16) The type of insurance coverage, including, but not
limited to, property insurance and title insurance, for the

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buyer and seller that will be required or provided.
(17) The seller's interest in the structure being sold.
(18) Any known liens or mortgages or other title
limitations existing on the property.
(19) An explanation as to when the buyer will obtain
the title.
(20) A statement defining what repairs the buyer is
financially responsible for making to the dwelling
structure and any residential real estate subject to the
contract, if any, and how responsibilities of the buyer and
seller to repair the property change based on the time
period the residential real estate subject to the contract
is occupied by the buyer and what percentage of the
principal is paid down by any repairs made by the buyer. In
all circumstances not defined in the disclosure required by
this subsection, the seller has the financial
responsibility for all repairs required to be made pursuant
to the installment sales contract.
(21) A statement defining what, if any, alterations of
the property must be approved by both the buyer and the
seller prior to the alterations being made, including
requirements to provide evidence of proper permits,
insurance, and lien waiver agreements.
(22) Any additional charges or fees due at the time of
the date of sale or at a later date.
(23) An amortization schedule, as defined in Section 5.

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(24) A certificate of compliance with applicable
dwelling codes, or in the absence of such a certificate:
(i) an express written warranty that no notice from any
municipality or other governmental authority of a dwelling
code violation that existed with respect to the residential
real estate or dwelling structure subject to the contract
before the installment sales contract was executed had been
received by the seller, his or her principal, or his or her
agent within 10 years of the date of execution of the
installment sales contract; or (ii) if any notice of a
violation had been received, a list of all such notices
with a detailed statement of all violations referred to in
the notice.
(25) A statement, in large bold font stating in
substantially similar form: "NOTE TO BUYER: BEFORE SIGNING
THE CONTRACT THE BUYER HAS THE OPTION OF OBTAINING AN
INDEPENDENT THIRD PARTY INSPECTION AND/OR APPRAISAL SO
THAT THE BUYER CAN DETERMINE THE CONDITION AND ESTIMATED
MARKET VALUE OF THE RESIDENTIAL REAL ESTATE AND DECIDE
WHETHER TO SIGN THE CONTRACT."
(26) If the residential real estate or any dwelling
structure thereon that is subject to the contract has been
condemned by the unit of government having jurisdiction,
the contract shall include a statement, in large bold font
stating in substantially similar form: "NOTE TO BUYER: THE
RESIDENTIAL REAL ESTATE BEING SOLD THROUGH THIS CONTRACT

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HAS BEEN CONDEMNED BY THE UNIT OF GOVERNMENT HAVING
JURISDICTION."
(27) A statement that the seller provided the buyer the
installment sales contract disclosure prepared by the
Office of the Attorney General as required under Illinois
State law. The statement shall include the date on which
the buyer was provided with the disclosure, which must be
at least 3 full business days before the contract was
executed.
(28) A statement that: (i) if the buyer defaults in
payment, any action brought against the buyer under the
contract shall be initiated only after the expiration of 30
days from the date of the default; and (ii) a buyer in
default may, prior to the expiration of the 30-day period,
make all payments, fees and charges currently due under the
contract to cure the default.
(d) The requirements of this Section cannot be waived by
the buyer or seller.
Section 15. Applicability of other Acts. An installment
sales contract under this Act is subject to the Lead Poisoning
Prevention Act, the Residential Real Property Disclosure Act,
the Illinois Radon Awareness Act, and the High Risk Home Loan
Act. The remedies available to the buyer pursuant to this Act
are cumulative and do not preclude any remedies otherwise
available to a buyer at law or in equity.

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Section 20. Recording of contract required.
(a) Within 5 business days of the date of sale of any
residential real estate or dwelling structure subject to an
installment sales contract, and prior to any subsequent sale or
other transfer of any interest in the residential real estate,
dwelling structure, or contract by the seller, the seller shall
record the contract or a memorandum of the contract with the
county recorder of deeds. A memorandum of the contract shall be
titled "Memorandum of an Installment Sales Contract" either in
capital letters or underscored above the body of the
memorandum. At a minimum, the memorandum of the contract shall
include: the address, permanent index number, and legal
description of the residential real estate subject to the
contract; the names of the buyer and seller; and the date the
contract was executed. The memorandum of the contract shall be
signed by the buyer and the seller with the signatures
notarized.
(b) If the seller fails to record the contract or the
memorandum of the contract as required by subsection (a) of
this Section, the buyer has the right to rescind the contract
until such time as the seller records the contract. If the
seller fails to record the contract or the memorandum of the
contract and title to the property becomes clouded for any
reason, including, but not limited to, that another person buys
the property, a judgment lien is placed on the property, or a

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consensual mortgage or some other third party interest
affecting the title arises, the buyer has the option to
rescind, not just before the seller records, but at any time
within 90 days of discovering the title problem.
(c) Upon rescission under this Section, the seller shall
refund to the buyer all money paid to the seller as of the date
of rescission. This Section does not limit any other remedies
provided to the buyer by this Act or State law.
Section 25. Repairs.
(a) In all cases not included in the statement required by
item (20) of subsection (c) of Section 10, the seller has the
responsibility to make and pay for repairs.
(b) If the seller deems certain repairs necessary to
protect the seller's interest in the property, the seller may,
at the seller's own cost, proceed to make the repairs in
compliance with this Section. Before the performance of
nonemergency repairs on a dwelling unit inhabited by a buyer,
the seller shall provide the buyer with at least 72 hours'
written notice of the seller's intent to make the proposed
repairs. Nothing in this Section limits the seller's right to
negotiate or secure recovery of the seller's actual cost to
make repairs caused due to negligence or malicious damage on
the part of the buyer.
(c) Except for limitations included in the statement
required by item (20) of subsection (c) of Section 10, nothing

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in this Section limits the buyer's right to obtain the services
of a building contractor to make repairs that are chargeable to
the buyer under this Act.
(d) No seller may require, by contract or otherwise, that
only the seller or an agent of the seller may make repairs. The
buyer has the right to contract with other building contractors
to make repairs for which the buyer is financially responsible.
Section 30. Account statements.
(a) The seller shall provide the buyer with an account
statement, including amounts applied to principal, interest,
tax, insurance, fees, and other charges, upon the buyer's
request.
(b) A seller is not required to provide a buyer with
account statements without charge more than once in any
12-month period.
(c) If the buyer's request for an account statement is made
in response to a change in the terms of an installment sales
contract, then the seller must provide the account statement
without charge.
(d) For other buyer requests for account statements, the
seller may not charge the buyer more than the reasonable costs
of copying and producing the account statement.
Section 35. Insurance proceeds. A buyer or seller who
receives payment of insurance proceeds as a result of damage to

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a dwelling structure shall apply the proceeds to the repair of
the damage. However, the buyer and seller may make a fair and
reasonable distribution of the insurance proceeds between each
of them by a signed written agreement. The written agreement
shall not be made until at least 7 days after any award of
insurance on a claim has been settled and written notice of the
settlement and award has been made by the insurer to both the
buyer and seller.
Section 40. Right to cure default. If the buyer defaults in
payment, any action brought against the buyer under the
contract shall be initiated only after the expiration of 30
days from the date of the default. A buyer in default may,
prior to the expiration of the 30-day period, make all
payments, fees, and charges currently due under the contract to
cure the default.
Section 45. Unlawful acts. It is a violation of this Act
for either party to make an oral or written misrepresentation
to the other party concerning a contract or regarding the
rights or duties of either party under this Act or to induce
either party to sign incomplete forms, contracts, notices, or
written statements relating to the sale of a dwelling
structure.
Section 50. No waiver. The buyer or the seller may not

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waive any provisions of this Act by written contract or
otherwise. Any contractual provisions or other agreements
contrary to this Act are void and unenforceable.
Section 55. Circumstances voiding mandatory arbitration
provisions. A mandatory arbitration provision of an
installment sales contract that is oppressive, unfair,
unconscionable, or substantially in derogation of the rights of
either party is void.
Section 60. Prepayment penalties prohibited. The seller
may not charge or collect a prepayment penalty or any similar
fee or finance charge if the buyer elects to pay the
outstanding principal balance of the purchase price under the
contract before the scheduled payment date under the contract.
Section 65. Prohibited contract terms. Any contract term
that would put the buyer in default of the contract for failure
to make improvements and repairs to residential real estate for
conditions that existed prior to the date of sale is prohibited
and unenforceable.
Section 70. Cooling-off period.
(a) The buyer or the seller shall not be bound for 3 full
business days after an unexecuted installment sales contract
has been accepted by the buyer and the seller in the contract's

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full and final form.
(b) No later than the time the unexecuted installment sales
contract has been accepted by the buyer and the seller in the
contract's full and final form, the seller shall provide to the
buyer the document described in Section 75 of this Act.
(c) An executed installment sales contract shall include a
statement acknowledging that the seller provided the buyer with
the installment sales contract disclosure prepared by the
Office of the Attorney General, as required under Section 75 of
this Act.
(d) An executed installment sales contract shall include
the date the seller provided the buyer with the installment
sales contract disclosure prepared by the Office of the
Attorney General.
(e) The requirements of this Section cannot be waived by
the buyer or the seller.
Section 75. Installment sales contract disclosures.
(a) The Office of the Attorney General shall develop the
content and format of an educational document providing
independent consumer information regarding installment sales
contracts and the availability of independent housing
counseling services, including services provided by nonprofit
agencies certified by the federal government to provide housing
counseling. The document shall be updated and revised as often
as deemed necessary by the Office of the Attorney General.

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(b) The document described in subsection (a) of this
Section shall include the following statement: "IMPORTANT
NOTICE REGARDING THE COOLING-OFF PERIOD: Illinois State law
requires a 3-day cooling-off period for installment sales
contracts, during which time a potential buyer cannot be
required to close or proceed with the contract. The purpose of
this requirement is to provide a potential buyer with 3
business days to consider his or her decision whether to sign
an installment sales contract. Potential buyers may want to
seek additional information from a HUD-approved housing
counselor during this 3-day period. The 3-day cooling-off
period cannot be waived."
Section 80. Credits towards deficiency in the case of
default. If the buyer defaults, the seller shall credit toward
the buyer deficiency any amount the buyer spent to repair
defects in the property that existed before the sale.
Section 85. Enforcement.
(a) Any violation of this Act shall constitute an unlawful
practice under the Consumer Fraud and Deceptive Business
Practices Act.
(b) Any violation of this Act by a licensee under the
Residential Mortgage License Act of 1987 shall also be
considered a violation of the Residential Mortgage License Act
of 1987.

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Section 90. Applicability of Act. This Act applies to
installment sales contracts executed on or after the effective
date of this Act.
Section 905. The Code of Civil Procedure is amended by
changing Section 15-1106 as follows:
(735 ILCS 5/15-1106) (from Ch. 110, par. 15-1106)
Sec. 15-1106. Applicability of Article.
(a) Exclusive Procedure. From and after July 1, 1987 (the
effective date of Public Act 84-1462) this amendatory Act of
1986, the following shall be foreclosed in a foreclosure
pursuant to this Article:
(1) any mortgage created prior to, on or after July 1,
1987 (the effective date of Public Act 84-1462) this
amendatory Act of 1986;
(2) any real estate installment contract for
residential real estate entered into on or after July 1,
1987 (the effective date of Public Act 84-1462) this
amendatory Act of 1986 and under which the sum of all
payments made by the buyer is greater than or equal to 10%
of the original purchase price (i) the purchase price is to
be paid in installments over a period in excess of five
years and (ii) the amount unpaid under the terms of the
contract at the time of the filing of the foreclosure

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complaint, including principal and due and unpaid
interest, at the rate prior to default, is less than 80% of
the original purchase price of the real estate as stated in
the contract;
(3) any collateral assignment of beneficial interest
made on or after July 1, 1987 (the effective date of Public
Act 84-1462) this amendatory Act of 1986 (i) which is made
with respect to a land trust which was created
contemporaneously with the collateral assignment of
beneficial interest, (ii) which is made pursuant to a
requirement of the holder of the obligation to secure the
payment of money or performance of other obligations and
(iii) as to which the security agreement or other writing
creating the collateral assignment permits the real estate
which is the subject of the land trust to be sold to
satisfy the obligations.
(b) Uniform Commercial Code. A secured party, as defined in
Article 9 of the Uniform Commercial Code, may at its election
enforce its security interest in a foreclosure under this
Article if its security interest was created on or after July
1, 1987 (the effective date of Public Act 84-1462) this
amendatory Act of 1986 and is created by (i) a collateral
assignment of beneficial interest in a land trust or (ii) an
assignment for security of a buyer's interest in a real estate
installment contract. Such election shall be made by filing a
complaint stating that it is brought under this Article, in

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which event the provisions of this Article shall be exclusive
in such foreclosure.
(c) Real Estate Installment Contracts. A contract seller
may at its election enforce in a foreclosure under this Article
any real estate installment contract entered into on or after
July 1, 1987 (the effective date of Public Act 84-1462) this
Amendatory Act of 1986 and not required to be foreclosed under
this Article. Such election shall be made by filing a complaint
stating that it is brought under this Article, in which event
the provisions of this Article shall be exclusive in such
foreclosure. A contract seller must enforce its contract under
this Article if the real estate installment contract is one
described in paragraph (2) of subsection (a) of this Section
15-1106.
(d) Effect of Election. An election made pursuant to
subsection (b) or (c) of this Section 15-1106 shall be binding
only in the foreclosure and shall be void if the foreclosure is
terminated prior to entry of judgment.
(e) Supplementary General Principles of Law. General
principles of law and equity, such as those relating to
capacity to contract, principal and agent, marshalling of
assets, priority, subrogation, estoppel, fraud,
misrepresentations, duress, collusion, mistake, bankruptcy or
other validating or invalidating cause, supplement this
Article unless displaced by a particular provision of it.
Section 9-110 of this the Code of Civil Procedure shall not be

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applicable to any real estate installment contract which is
foreclosed under this Article.
(f) Pending Actions. A complaint to foreclose a mortgage
filed before July 1, 1987, and all proceedings and third party
actions in connection therewith, shall be adjudicated pursuant
to the Illinois statutes and applicable law in effect
immediately prior to July 1, 1987. Such statutes shall remain
in effect with respect to such complaint, proceedings and third
party actions notwithstanding the amendment or repeal of such
statutes on or after July 1, 1987.
(g) The changes made to this Section by this amendatory Act
of the 100th General Assembly apply to real estate installment
contracts for residential real estate executed on or after the
effective date of this amendatory Act of the 100th General
Assembly.
(Source: P.A. 85-907.)
Section 910. The Condominium Property Act is amended by
changing Sections 18 and 18.5 as follows:
(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

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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;
(6) that each unit owner shall receive, at least 25
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 supply to
all unit owners an itemized accounting 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

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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
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

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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
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)(A) that every meeting of the board of managers
shall be open to any unit owner, except that the board may
close any portion of a noticed meeting or meet separately
from a noticed meeting to: (i) 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) discuss the
appointment, employment, engagement, or dismissal of an
employee, independent contractor, agent, or other provider
of goods and services, (iii) interview a potential

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employee, independent contractor, agent, or other provider
of goods and services, (iv) discuss violations of rules and
regulations of the association, (v) discuss a unit owner's
unpaid share of common expenses, or (vi) consult with the
association's legal counsel; that any vote on these matters
shall take place at a meeting of the board of managers or
portion thereof open to any unit owner;
(B) that board members may participate in and act at
any meeting of the board of managers in person, by
telephonic means, or by use of any acceptable technological
means whereby all persons participating in the meeting can
communicate with each other; that participation
constitutes attendance and presence in person at the
meeting;
(C) that any unit owner may record the proceedings at
meetings of the board of managers or portions thereof
required to be open by this Act by tape, film or other
means, and that the board may prescribe reasonable rules
and regulations to govern the right to make such
recordings;
(D) that notice of every meeting of the board of
managers shall be given to every board member at least 48
hours prior thereto, unless the board member waives notice
of the meeting pursuant to subsection (a) of Section 18.8;
and
(E) that notice of every meeting of the board of

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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; that notice of every meeting of
the board of managers shall also be given at least 48 hours
prior to the meeting, or such longer notice as this Act may
separately require, to: (i) each unit owner who has
provided the association with written authorization to
conduct business by acceptable technological means, and
(ii) to the extent that the condominium instruments of an
association require, to each other unit owner, as required
by subsection (f) of Section 18.8, by mail or delivery, and
that no other notice of a meeting of the board of managers
need be given to any unit owner;
(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;

SB0885 Engrossed - 24 - LRB100 05980 HEP 16008 b
(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
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

SB0885 Engrossed - 25 - LRB100 05980 HEP 16008 b
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;
(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;
(20) that the board of managers may establish and
maintain a system of master metering of public utility

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services and collect payments in connection therewith,
subject to the requirements of the Tenant Utility Payment
Disclosure Act; and
(21) that the board may ratify and confirm actions of
the members of the board taken in response to an emergency,
as that term is defined in subdivision (a)(8)(iv) of this
Section; that the board shall give notice to the unit
owners of: (i) the occurrence of the emergency event within
7 business days after the emergency event, and (ii) the
general description of the actions taken to address the
event within 7 days after the emergency event.
The intent of the provisions of Public Act 99-472
adding this paragraph (21) is to empower and support boards
to act in emergencies.
(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
owners holding a majority of the percentage interest in the
association provide for a higher percentage, provided that
in voting on amendments to the association's bylaws, a unit
owner who is in arrears on the unit owner's regular or
separate assessments for 60 days or more, shall not be
counted for purposes of determining if a quorum is present,
but that unit owner retains the right to vote on amendments
to the association's bylaws;

SB0885 Engrossed - 27 - LRB100 05980 HEP 16008 b
(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 except that notice may be sent, to the
extent the condominium instruments or rules adopted
thereunder expressly so provide, by electronic
transmission consented to by the unit owner to whom the
notice is given, provided the director and officer or his
agent certifies in writing to the delivery by electronic
transmission;
(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

SB0885 Engrossed - 28 - LRB100 05980 HEP 16008 b
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
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) except as provided in subparagraph (B) of this
paragraph (9) in connection with board elections, that 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; to the extent the condominium instruments
or rules adopted thereunder expressly so provide, a vote or
proxy may be submitted by electronic transmission,
provided that any such electronic transmission shall
either set forth or be submitted with information from
which it can be determined that the electronic transmission

SB0885 Engrossed - 29 - LRB100 05980 HEP 16008 b
was authorized by the unit owner or the unit owner's proxy;
(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
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

SB0885 Engrossed - 30 - LRB100 05980 HEP 16008 b
request and cast a ballot in person at the election
meeting, and thereby void any ballot previously submitted
by that unit owner;
(B-5) 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 subparagraph, 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 any acceptable
technological means as defined in Section 2 of this Act;
instructions regarding the use of electronic means for
voting shall be distributed to all 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; the deadline shall be
no more than 7 days before the instructions for voting
using electronic or acceptable technological means is
distributed to unit owners; every instruction notice 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 voting through
electronic or acceptable technological means the
opportunity to cast votes for candidates whose names do not
appear on the ballot; a unit owner who submits a vote using
electronic or acceptable technological means may request

SB0885 Engrossed - 31 - LRB100 05980 HEP 16008 b
and cast a ballot in person at the election meeting,
thereby voiding any vote 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) or subparagraph
(B-5) 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; 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;
(D) that votes cast by ballot under subparagraph (B) or
electronic or acceptable technological means under
subparagraph (B-5) of this paragraph (9) are valid for the
purpose of establishing a quorum;
(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;

SB0885 Engrossed - 32 - LRB100 05980 HEP 16008 b
(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 sales 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 serve on the board. Satisfactory
evidence of the installment sales contract shall be made
available to the association or its agents. For purposes of
this subsection, "installment sales contract" shall have
the same meaning as set forth in Section 5 of the
Installment Sales Contract Act Section 1(e) of the Dwelling
Unit Installment Contract Act;
(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

SB0885 Engrossed - 33 - LRB100 05980 HEP 16008 b
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.
(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

SB0885 Engrossed - 34 - LRB100 05980 HEP 16008 b
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 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

SB0885 Engrossed - 35 - LRB100 05980 HEP 16008 b
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 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 September 21, 1985 (the effective
date of Public Act 84-722), 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.

SB0885 Engrossed - 36 - LRB100 05980 HEP 16008 b
(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.
(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

SB0885 Engrossed - 37 - LRB100 05980 HEP 16008 b
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 August 30, 1984
(the effective date of Public Act 83-1271).
(ii) With regard to any lease entered into subsequent
to July 1, 1990 (the effective date of Public Act 86-991),
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 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,

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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 and garage units
or storage units, or both, shall have, in total, no more
votes than their aggregate percentage of ownership in the
common elements; this shall mean that if garage units or
storage units, or both, are to be given a vote, or portion
of a vote, that the association must add the total number
of votes cast of garage units, storage units, or both, and
divide the total by the number of garage units, storage
units, or both, and multiply by the aggregate percentage of
ownership of garage units and storage units to determine
the vote, or portion of a vote, that garage units or
storage units, or both, have. 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

SB0885 Engrossed - 39 - LRB100 05980 HEP 16008 b
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
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. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16;
99-567, eff. 1-1-17; 99-642, eff. 7-28-16.)
(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
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).

SB0885 Engrossed - 40 - LRB100 05980 HEP 16008 b
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.
(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

SB0885 Engrossed - 41 - LRB100 05980 HEP 16008 b
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; 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

SB0885 Engrossed - 42 - LRB100 05980 HEP 16008 b
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 sales 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 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 sales contract shall be made available to the
association or its agents. For purposes of this subsection,
"installment sales contract" shall have the same meaning as
set forth in Section 5 of the Installment Sales Contract

SB0885 Engrossed - 43 - LRB100 05980 HEP 16008 b
Act 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)
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

SB0885 Engrossed - 44 - LRB100 05980 HEP 16008 b
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
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

SB0885 Engrossed - 45 - LRB100 05980 HEP 16008 b
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
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

SB0885 Engrossed - 46 - LRB100 05980 HEP 16008 b
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
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

SB0885 Engrossed - 47 - LRB100 05980 HEP 16008 b
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
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

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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
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,

SB0885 Engrossed - 49 - LRB100 05980 HEP 16008 b
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.
(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

SB0885 Engrossed - 50 - LRB100 05980 HEP 16008 b
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
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.

SB0885 Engrossed - 51 - LRB100 05980 HEP 16008 b
(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
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

SB0885 Engrossed - 52 - LRB100 05980 HEP 16008 b
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.
(g-1) The purchaser of a unit of a common interest
community at a judicial foreclosure sale, other than a
mortgagee, who takes possession of a unit of a common interest
community 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 that 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 the court costs incurred by the association in
an action to enforce the collection that remain unpaid by the
owner during whose possession the assessments accrued. If the
outstanding assessments and the court costs incurred by the
association in an action to enforce the collection are paid at
any time during any action to enforce the collection of
assessments, the purchaser shall have no obligation to pay any

SB0885 Engrossed - 53 - LRB100 05980 HEP 16008 b
assessments that accrued before he or she acquired title. The
notice of sale of a unit of a common interest community 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 court costs required
by this subsection (g-1).
(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
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

SB0885 Engrossed - 54 - LRB100 05980 HEP 16008 b
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
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

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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
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.

SB0885 Engrossed - 56 - LRB100 05980 HEP 16008 b
(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
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

SB0885 Engrossed - 57 - LRB100 05980 HEP 16008 b
Corporation, the Federal Housing Administration, the
United States Veterans Administration or their respective
successors and assigns.
(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
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) (Blank).
(Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12;
97-605, eff. 8-26-11; 97-813, eff. 7-13-12.)
(765 ILCS 70/Act rep.)
Section 915. The Dwelling Structure Contract Act is
repealed.
(765 ILCS 75/Act rep.)

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Section 920. The Dwelling Unit Installment Contract Act is
repealed.
Section 925. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2Z as follows:
(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
Sec. 2Z. Violations of other Acts. Any person who knowingly
violates the Automotive Repair Act, the Automotive Collision
Repair Act, the Home Repair and Remodeling Act, the Dance
Studio Act, the Physical Fitness Services Act, the Hearing
Instrument Consumer Protection Act, the Illinois Union Label
Act, the Installment Sales Contract Act, the Job Referral and
Job Listing Services Consumer Protection Act, the Travel
Promotion Consumer Protection Act, the Credit Services
Organizations Act, the Automatic Telephone Dialers Act, the
Pay-Per-Call Services Consumer Protection Act, the Telephone
Solicitations Act, the Illinois Funeral or Burial Funds Act,
the Cemetery Oversight Act, the Cemetery Care Act, the Safe and
Hygienic Bed Act, the Pre-Need Cemetery Sales Act, the High
Risk Home Loan Act, the Payday Loan Reform Act, the Mortgage
Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the
Cigarette Tax Act, subsection (a) or (b) of Section 3-10 of the
Cigarette Use Tax Act, the Electronic Mail Act, the Internet
Caller Identification Act, paragraph (6) of subsection (k) of
Section 6-305 of the Illinois Vehicle Code, Section 11-1431,

SB0885 Engrossed - 59 - LRB100 05980 HEP 16008 b
18d-115, 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the
Illinois Vehicle Code, Article 3 of the Residential Real
Property Disclosure Act, the Automatic Contract Renewal Act,
the Reverse Mortgage Act, Section 25 of the Youth Mental Health
Protection Act, or the Personal Information Protection Act
commits an unlawful practice within the meaning of this Act.
(Source: P.A. 99-331, eff. 1-1-16; 99-411, eff. 1-1-16; 99-642,
eff. 7-28-16.)
Section 999. Effective date. This Act takes effect January
1, 2018.