(765 ILCS 605/1) (from Ch. 30, par. 301)
Sec. 1.
Short
title.
This Act shall be known and may be cited as the "Condominium Property Act."
(Source: Laws 1963, p. 1120.)
(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.
(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 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 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 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.
(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.
(y) "Electronic transmission" means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved, and reviewed by a recipient and that may be directly reproduced in paper form by the recipient through an automated process.
(z) "Acceptable technological means" includes, without limitation, electronic transmission over the Internet or other network, whether by direct connection, intranet, telecopier, electronic mail, and any generally available technology that, by rule of the association, is deemed to provide reasonable security, reliability, identification, and verifiability.
(Source: P.A. 98-1042, eff. 1-1-15; 99-612, eff. 1-1-17.)
(765 ILCS 605/2.1) (from Ch. 30, par. 302.1)
Sec. 2.1.
Applicability.
Unless otherwise expressly provided in another
Section, the provisions of this Act are applicable to all condominiums in this
State. Any provisions of a condominium instrument that contains provisions
inconsistent with the provisions of this Act are void as against public policy
and ineffective.
(Source: P.A. 89-41, eff. 6-23-95.)
(765 ILCS 605/3) (from Ch. 30, par. 303)
Sec. 3.
Submission of property.
Whenever the owner or owners in fee simple,
or the sole lessee or all lessees of a lease described in item (x) of Section
2, of a parcel intend to submit such property to the provisions of this Act,
they shall do so by recording a declaration, duly executed and acknowledged,
expressly stating such intent and setting forth the particulars enumerated in
Section 4. If the condominium is a leasehold condominium, then every lessor of
the lease creating a leasehold interest as described in item (x) of Section 2
shall also execute the declaration and such lease shall be recorded prior to
the recording of the declaration.
The execution of a declaration required
under this Section by the lessor under a lease as described in item (x) of
Section 2 does not make the lessor a developer for purposes of this Act.
(Source: P.A. 93-474, eff. 8-8-03.)
(765 ILCS 605/4) (from Ch. 30, par. 304)
Sec. 4.
Declaration - Contents.) The declaration shall set forth the
following particulars:
(a) The legal description of the parcel.
(b) The legal description of each unit, which may consist of the
identifying number or symbol of such unit as shown on the plat.
(c) The name of the condominium, which name shall include the word
"Condominium" or be followed by the words "a Condominium".
(d) The name of the city and county or counties in which the condominium is
located.
(e) The percentage of ownership interest in the common elements
allocated to each unit. Such percentages shall be computed by taking as
a basis the value of each unit in relation to the value of the property
as a whole, and having once been determined and set forth as herein provided,
such percentages shall remain constant unless otherwise provided in this
Act or thereafter changed by agreement of all unit owners.
(f) If applicable, all matters required by this Act in connection
with an add-on condominium.
(g) A description of both the common and limited common elements, if
any, indicating the manner of their assignment to a unit or units.
(h) If applicable, all matters required by this Act in connection
with a conversion condominium.
(h-5) If the condominium is a leasehold condominium, then:
(i) Such other lawful provisions not inconsistent with the
provisions of this Act as the owner or owners may deem desirable in
order to promote and preserve the cooperative aspect of ownership of the
property and to facilitate the proper administration thereof.
(Source: P.A. 89-89, eff. 6-30-95.)
(765 ILCS 605/4.1) (from Ch. 30, par. 304.1)
Sec. 4.1.
Construction, interpretation, and validity of Condominium
Instruments.
(a) Except to the extent otherwise provided by the declaration or other
condominium instruments:
(b) Except to the extent otherwise provided by the declaration or by
other condominium instruments recorded prior to the effective date of this
amendatory Act of 1984, in the event of a conflict between the provisions
of the declaration
and the bylaws or other condominium instruments, the declaration prevails
except to the extent the declaration
is inconsistent with this Act.
(c) A provision in the initial declaration limiting ownership, rental
or occupancy of a condominium unit to a
person 55 years of age or older shall be valid and deemed not to be in
violation of Article 3 of the Illinois Human Rights Act provided that
the person or the immediate
family of a person owning, renting or lawfully occupying such unit prior
to the recording of
the initial declaration shall not be deemed to be in
violation of such age restriction so long as they continue to own or reside
in such unit.
(Source: P.A. 89-41, eff. 6-23-95.)
(765 ILCS 605/5) (from Ch. 30, par. 305)
Sec. 5.
Plat to be recorded.) Simultaneously with the recording of
the declaration there shall be recorded a plat as defined in Section 2,
which plat shall be made by a Registered Illinois Land Surveyor and
shall set forth (1) all angular and linear data along the exterior
boundaries of the parcel; (2) the linear measurements and location, with
reference to said exterior boundaries, of any buildings
improvements and structures located on the parcel; and (3) the
elevations at, above, or below official datum of the finished or
unfinished interior surfaces of the floors and ceilings and the linear
measurements of the finished or unfinished interior surfaces of the
perimeter walls, and lateral extensions thereof or other monumental
perimeter boundaries, where there are no wall surfaces, that part of
every unit which is in any building on the parcel, and the
locations of such wall
surfaces or unit boundaries with respect to the exterior boundaries of
the parcel projected vertically upward; (4) the elevations at, above, or
below official datum and the linear measurements of the perimeter
boundaries, of that part of the property which constitute a unit or a
part thereof outside any building on the parcel and the
location of the boundaries
with respect to the exterior vertical boundaries of the parcel,
projected vertically upward. Every such unit shall be identified on the
plat by a distinguishing number or other symbol; (5) if the Registered
Illinois Land Surveyor does not certify that such plat accurately
depicts the matters set forth in subsection (3) and (4) above, such a
certification for any particular unit or units as built shall be
recorded prior to the first conveyance of such particular unit or units
as part of an amended plat, thereby complying with the requirements of
subsections (3) and (4) of this Section; (6) when adding additional
property to an add-on condominium, the developer, or in the event of any
other alteration in the boundaries or location of a unit, any
building on the parcel
or the parcel authorized in this Act, the president of the board of
managers or other officer authorized and designated by the condominium
instruments shall record an amended plat of survey conforming to the
requirements of this Section, or shall provide a certificate of a plat
previously recorded that is in accordance with the certification
requirements of this subsection. Such amended plat or certificate
shall be certified by a Registered Illinois Land Surveyor as to accuracy
in depicting changes in boundary or location in the portions of the
property set forth in subsections (1), (2), (3) and (4) above, and that
such changes have been completed.
(Source: P.A. 82-246.)
(765 ILCS 605/6) (from Ch. 30, par. 306)
Sec. 6.
Recording - Effect.)
Upon compliance with the provisions of Sections 3, 4, and 5 and upon
recording of the declaration and plat the property shall become subject to
the provisions of this Act, and all units shall thereupon be capable of
ownership in fee simple or any lesser estate, and may thereafter be
conveyed, leased, mortgaged or otherwise dealt with in the same manner as
other real property, but subject, however, to the limitations imposed by
this Act.
Each unit owner shall be entitled to the percentage of ownership in the
common elements appertaining to such unit as computed and set forth in the
declaration pursuant to subsection (e) of Section 4 hereof, and ownership
of such unit and of the owner's corresponding percentage of ownership in
the common elements shall not be separated, except as provided in this Act,
nor, except by the recording of
an amended declaration and amended plat approved in writing by all unit
owners, shall any unit, by deed, plat, judgment of a court or otherwise, be
subdivided or in any other manner separated into tracts or parcels
different from the whole unit as shown on the plat, except as provided in this Act.
The condominium instruments may contain provisions in
accordance with this Act providing for the reallocation and
adjustment of the percentage of ownership in the common elements
appertaining to a unit or units in circumstances relating to
the following transactions: an add-on condominium; condemnation; damage
or destruction of all or a portion of the property; and the subdivision
or combination of units. Interests in the common elements shall be re-allocated,
and the transaction shall be
deemed effective at the time of the recording of an amended plat
depicting same pursuant to Section 5 of this Act. Simultaneously
with the recording of the amended plat, the developer in the
case of an add-on condominium, or the President of the board of
managers or other officer in other instances authorized in this Act shall
execute and record an amendment to the declaration setting forth
all pertinent aspects of the transaction including the reallocation or
adjustment of the common interest. The amendment shall contain legal
descriptions sufficient to indicate the location of any property involved
in the transaction.
(Source: P.A. 84-1308.)
(765 ILCS 605/7) (from Ch. 30, par. 307)
Sec. 7.
Descriptions
in deeds, etc.
Every deed, lease, mortgage or other instrument may legally describe a
unit by its identifying number or symbol as shown on the plat and as set
forth in the declaration, and every such description shall be deemed good
and sufficient for all purposes, and shall be deemed to convey, transfer,
encumber or otherwise affect the owner's corresponding percentage of
ownership in the common elements even though the same is not expressly
mentioned or described therein.
(Source: Laws 1963, p. 1120.)
(765 ILCS 605/8) (from Ch. 30, par. 308)
Sec. 8.
Partition of
common elements prohibited.
As long as the property is subject to the provisions of this Act the
common elements shall, except as provided in Section 14 hereof, remain
undivided, and no unit owner shall bring any action for partition or
division of the common elements. Any covenant or agreement to the contrary
shall be void.
(Source: Laws 1963, p. 1120.)
(765 ILCS 605/9) (from Ch. 30, par. 309)
Sec. 9. Sharing of expenses - Lien for nonpayment.
(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.
(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.
(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 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. 100-292, eff. 1-1-18.)
(765 ILCS 605/9.1) (from Ch. 30, par. 309.1)
Sec. 9.1.
(a) Other liens; attachment and satisfaction.
Subsequent to the recording of the declaration, no liens of any nature shall
be created or arise against any portion of the property except against an
individual unit or units. No labor performed or materials furnished with
the consent or at the request of a particular unit owner shall be the basis
for the filing of a mechanics' lien claim against any other unit. If the
performance of the labor or furnishing of the materials is expressly authorized
by the
board of managers, each unit owner shall be deemed to have expressly authorized
it and consented thereto, and shall be liable for the payment of his unit's
proportionate share of any due and payable indebtedness as set forth in this
Section.
Each mortgage and other lien, including mechanics liens, securing a debt
incurred in the development of the land submitted to the provisions of this
Act for the sale of units shall be subject to the provisions of this Act,
subsequent to the conveyance of a unit to the purchaser.
In the event any lien exists against 2 or more units and the indebtedness
secured by such lien is due and payable, the unit owner of any such unit
so affected may remove such unit and the undivided interest in the common
elements appertaining thereto from such lien by payment of the proportional
amount of such indebtedness attributable to such unit. In the event such
lien exists against the units or against the property, the amount of such
proportional payment shall be computed on the basis of the percentages set
forth in the declaration. Upon payment as herein provided, it is the duty
of the encumbrancer to execute and deliver to the unit owner a release of
such unit and the undivided interest in the common elements appertaining
thereto from such lien, except that such proportional payment and release
shall not prevent the encumbrancer from proceeding to enforce his rights
against any unit or interest with respect to which such lien has not been
so paid or released.
The owner of a unit shall not be liable for any claims, damages, or
judgments, including but not limited to State or local government fees or
fines, entered as a result of any action or inaction of the board of managers
of the association other than for mechanics' liens as set forth in this
Section.
Unit owners other than the developer, members of the board of managers other
than the developer or developer representatives, and the association of unit
owners shall not be liable for any claims,
damages, or judgments, including but not limited to State or local government
fees or fines, entered as result of any action or inaction of the developer
other than for mechanics' liens as set forth in this Section.
Each unit owner's liability for any judgment entered against the
board of managers or the association, if any, shall be limited to his
proportionate share of the indebtedness as set forth in this Section, whether
collection is sought through assessment or otherwise. A unit owner shall be
liable for any claim, damage or judgment entered as a result of the use or
operation
of his unit, or caused by his own conduct. Before conveying a unit, a developer
shall record and furnish purchaser releases of all liens affecting
that unit
and its common element interest which the purchaser does not expressly agree
to take subject to or assume, and the developer shall provide a
surety bond
or substitute collateral for or insurance against liens for which a
release is not provided. After conveyance
of such unit, no mechanics lien shall be created against such unit or its
common element interest by reason of any subsequent contract by the developer
to improve or make additions to the property.
Each mortgagee or other lienholder of the unit of a common interest
community or of a unit subject to the Condominium Property Act shall
provide an address to the unit owners' association at the time the lien or
mortgage is recorded at which address such unit owners' association shall send
notice
to such mortgagee or lienholder of any eminent domain
proceeding to which the association thereafter becomes a party. If the
mortgagee or lienholder has not provided an address for notice purposes to
the association, then such notice shall be sent to all
mortgagees or lienholders which are named insureds on the master policy of
insurance which exists or may exist on the common interest community or
unit subject to the Condominium Property Act.
(b) Board of Managers' standing and capacity.
The board of managers shall have standing and capacity to act in a
representative
capacity in relation to matters involving the common elements or more than
one unit, on behalf of the unit owners, as their interests may appear.
(Source: P.A. 91-616, eff. 8-19-99.)
(765 ILCS 605/9.2) (from Ch. 30, par. 309.2)
Sec. 9.2. Other remedies.
(a) In the event of any default by any unit owner,
his tenant, invitee or guest in the performance of his obligations under this
Act or under the declaration, bylaws, or the rules and regulations of the board
of managers, the board of managers or its agents shall have such rights and
remedies as provided in the Act or condominium instruments including the right
to maintain an eviction action against such defaulting unit owner or his
tenant for the benefit of all the other unit owners in the manner prescribed by
Article IX of the Code of Civil Procedure.
(b) Any attorneys' fees incurred by the Association arising out of a
default by any unit owner, his tenant, invitee or guest in the performance of
any of the provisions of the condominium instruments, rules and regulations or
any applicable statute or ordinance shall be added to, and deemed a part of,
his respective share of the common expense.
(c) 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 Association.
(Source: P.A. 100-173, eff. 1-1-18.)
(765 ILCS 605/9.3) (from Ch. 30, par. 309.3)
Sec. 9.3.
Eminent domain proceedings; standing.
The unit owners'
association shall be named as defendant on behalf of all unit owners in any
eminent domain proceeding to take or damage property which is a common
element and which includes no portions of any units or limited common
elements. The association shall act therein on behalf of all unit owners.
Nothing contained herein shall bar a unit owner or mortgagee or lienholder
from intervening in the eminent domain proceeding on his own behalf.
(Source: P.A. 86-826.)
(765 ILCS 605/9.4) (from Ch. 30, par. 309.4)
Sec. 9.4.
Eminent domain proceedings; notice.
After receipt of
summons in an action to take or damage a common element, the unit owners'
association shall provide to the plaintiff a list of the unit owners,
mortgagees and lienholders, and the plaintiff shall provide notice by
certified mail to the unit owners, mortgagees and lienholders.
The notice shall include the following:
(1) case name and number and jurisdiction in which the case is filed;
(2) date of filing;
(3) brief description of the nature of the case;
(4) description of the property being damaged or taken;
(5) statement that the unit owner may petition the court to intervene; and
(6) statement that the mortgagee or lienholder may petition the court to intervene.
An immaterial error in providing notice shall not invalidate the legal
effect of the proceeding.
(Source: P.A. 86-826.)
(765 ILCS 605/9.5)
Sec. 9.5. Successor developers. Any assignment of a developer's interest in the property is not effective until the successor: (i) obtains the assignment in writing; and (ii) records the assignment.
(Source: P.A. 99-569, eff. 1-1-17.)
(765 ILCS 605/10) (from Ch. 30, par. 310)
Sec. 10.
Separate taxation.
(a) 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 against and levied upon real property
shall be assessed against and levied upon each unit and the owner's
corresponding percentage of ownership in the common elements as a tract, and
not upon the property as a whole. For purposes of property taxes, real
property owned and used for residential purposes by a condominium association,
including a master association, but subject to the exclusive right by easement,
covenant, deed or other interest of the owners of one or more condominium
properties and used exclusively by the unit owners for recreational or other
residential purposes shall be assessed at $1.00 per year. The balance of the
value of the property shall be assessed to the condominium unit owners.
In counties containing 1,000,000 or more inhabitants, any person desiring
to establish or to reestablish an assessment of $1.00 under this Section shall
make application therefor and be subject to the provisions of Section 10-35
of the Property Tax Code.
(b) Each condominium unit shall be only subject to the tax rate for those
taxing districts in which such unit is actually, physically located. The
county clerk shall not apply a rate which is an average of two or more
different districts to any condominium unit.
(c) Upon authorization by a two-thirds vote of the members of the
board of managers or by the affirmative vote of not less than a
majority of the unit owners at a meeting duly called for such purpose, or
upon such greater vote as may be required by the declaration or bylaws, the
board of managers acting on behalf of all unit owners shall have the power
to seek relief from or in connection with the assessment or levy of any
such taxes, special assessments or charges, and to charge and collect all
expenses incurred in connection therewith as common expenses.
(Source: P.A. 88-670, eff. 12-2-94.)
(765 ILCS 605/11) (from Ch. 30, par. 311)
Sec. 11.
Tax deeds.
In the event any person shall acquire or be entitled to the issuance of
a tax deed conveying the interest of any unit owner, the interest so
acquired shall be subject to all the provisions of this Act and to the
terms, provisions, covenants, conditions and limitations contained in the
declaration, the plat, the bylaws or any deed affecting such interest then
in force.
(Source: Laws 1963, p. 1120.)
(765 ILCS 605/12) (from Ch. 30, par. 312)
Sec. 12. Insurance.
(a) Required coverage. No policy of insurance shall be issued or
delivered to a condominium association, and no policy of insurance issued to a
condominium association shall be renewed, unless the insurance coverage under
the policy includes the following:
(b) Contiguous units; improvements and betterments. The insurance
maintained under subdivision (a)(1) must include the units, the limited
common elements except as otherwise determined by the board of managers,
and the common elements. The insurance need not cover improvements and
betterments to the units installed by unit owners, but if improvements
and betterments are covered, any increased cost may be assessed by the
association against the units affected.
Common elements include fixtures located within the unfinished
interior surfaces of the perimeter walls, floors, and ceilings of the
individual units initially installed by the developer. Common elements
exclude floor, wall, and ceiling coverings. "Improvements and
betterments" means all decorating, fixtures, and furnishings installed
or added to and located within the boundaries of the unit, including
electrical fixtures, appliances, air conditioning and heating
equipment, water heaters, built-in cabinets installed by unit owners, or any other additions, alterations, or upgrades installed or purchased by any unit owner.
(c) Deductibles. The board of directors of the association may,
in the case of a claim for damage to a unit or the common elements, (i)
pay the deductible amount as a common expense, (ii) after notice and an
opportunity for a hearing, assess the deductible amount against the
owners who caused the damage or from whose units the damage or cause of
loss originated, or (iii) require the unit owners of the units affected
to pay the deductible amount.
(d) Other coverages. The declaration may require the association
to carry any other insurance, including workers compensation,
employment practices, environmental hazards, and equipment breakdown,
the board of directors considers appropriate to protect the
association, the unit owners, or officers, directors, or agents of the
association.
(e) Insured parties; waiver of subrogation. Insurance policies
carried pursuant to subsections (a) and (b) must include each of the
following provisions:
(f) Primary insurance. If at the time of a loss under the policy
there is other insurance in the name of a unit owner covering the same
property covered by the policy, the association's policy is primary
insurance.
(g) Adjustment of losses; distribution of proceeds. Any loss
covered by the property policy under subdivision (a)(1) must be
adjusted by and with the association. The insurance proceeds for that
loss must be payable to the association, or to an insurance trustee
designated by the association for that purpose. The insurance trustee
or the association must hold any insurance proceeds in trust for unit
owners and secured parties as their interests may appear. The proceeds
must be disbursed first for the repair or restoration of the damaged
common elements, the bare walls, ceilings, and floors of the units, and
then to any improvements and betterments the association may insure.
Unit owners are not entitled to receive any portion of the proceeds
unless there is a surplus of proceeds after the common elements and
units have been completely repaired or restored or the association has
been terminated as trustee.
(h) Mandatory unit owner coverage. The board of directors may,
under the declaration and bylaws or by rule, require condominium unit
owners to obtain insurance covering their personal liability and
compensatory (but not consequential) damages to another unit caused by
the negligence of the owner or his or her guests, residents, or invitees,
or regardless of any negligence originating from the unit. The personal
liability of a unit owner or association member must include the
deductible of the owner whose unit was damaged, any damage not covered
by insurance required by this subsection, as well as the decorating,
painting, wall and floor coverings, trim, appliances, equipment, and
other furnishings.
(i) Certificates of insurance. Contractors and vendors (except public
utilities) doing business
with a condominium association under contracts exceeding $10,000 per
year must provide certificates of insurance naming the association, its
board of directors, and its managing agent as additional insured parties.
(j) Non-residential condominiums. The provisions of this Section
may be varied or waived in the case of a condominium community in which
all units are restricted to nonresidential use.
(k) Settlement of claims. Any insurer defending a liability claim
against a condominium association must notify the association of the
terms of the settlement no less than 10 days before settling the claim.
The association may not veto the settlement unless otherwise provided
by contract or statute.
(l) The changes to this Section made by this amendatory Act of the 98th General Assembly apply only to insurance policies issued or renewed on or after June 1, 2015.
(Source: P.A. 98-762, eff. 6-1-15.)
(765 ILCS 605/12.1) (from Ch. 30, par. 312.1)
Sec. 12.1.
Insurance risk pooling trusts.
(a) This Section shall be known and may be cited as the
Condominium and Common Interest Community Risk Pooling Trust Act.
(b) The boards of managers or boards of directors,
as the case may be, of two or more condominium associations or common
interest community associations, are authorized to establish, with the unit
owners and the condominium or common interest community associations as the
beneficiaries thereof, a trust fund for the purpose of providing
protection of the participating condominium and common interest
community associations against the risk of financial loss due to damage to,
destruction of or loss of property, or the imposition of legal liability as
required or authorized under this Act or the declaration of the condominium
or common interest community association.
(c) The trust fund shall be established and amended only
by a written instrument which shall be filed with and approved
by the Director of Insurance prior to its becoming effective.
(d) No association shall be a beneficiary of
the trust fund unless it shall be incorporated under the laws of
this State.
(e) The trust fund is authorized to indemnify the condominium and
common interest community association beneficiaries thereof against the
risk of loss due to damage, destruction or loss to property or imposition
of legal liability as required or authorized under this Act or the
declaration of the condominium or common interest community association.
(f) Risks assumed by the trust fund may be pooled and shared
with other trust funds established under this Section.
(g) (Blank).
(h) (Blank).
(i) No trustee of the trust fund shall be paid a salary or receive
other compensation, except that the written trust instrument may
provide for reimbursement for actual expenses incurred on behalf of the
trust fund.
(j) (Blank).
(k) (Blank).
(l) (Blank).
(m) Each trust fund shall file annually
with the
Director of Insurance a full independently audited financial statement.
(n) (Blank).
(o) (Blank).
(p) (Blank).
(q) (Blank).
(r) (Blank).
(s) The Director of Insurance shall have with
respect to trust funds established under this Section the
powers of examination conferred upon him relative to
insurance companies by Section 132 of the
Illinois Insurance
Code.
(t) (Blank).
(u) (Blank).
(v) Trust funds established under and which fully comply with this Section
shall not be considered member insurance companies or to be in the business of
insurance nor shall the provision of Article XXXIV of the Illinois Insurance
Code apply to any such trust fund established under this Section.
(w) (Blank).
(x) The Director of Insurance shall adopt reasonable rules pertaining to
the standards of coverage and administration of trust funds authorized under
this Section.
(Source: P.A. 92-518, eff. 6-1-02.)
(765 ILCS 605/13) (from Ch. 30, par. 313)
Sec. 13.
Application
of insurance proceeds to reconstruction.
In case of fire or any other disaster the insurance proceeds, if
sufficient to reconstruct the building, shall be applied to such
reconstruction. Reconstruction of the building as used in this and
succeeding Section 14 of this Act, means restoring the building to
substantially the same condition in which it existed prior to the fire or
other disaster, with each unit and the common elements having the same
vertical and horizontal boundaries as before.
(Source: Laws 1963, p. 1120.)
(765 ILCS 605/14) (from Ch. 30, par. 314)
Sec. 14.
Disposition
of property where insurance proceeds are insufficient for reconstruction.)
(1) In case of fire or other disaster, if the insurance proceeds are
insufficient to reconstruct the building and the unit owners and all other
parties in interest do not voluntarily make provision for reconstruction of
the building within 180 days from the date of damage or destruction, the
board of managers may record a notice setting forth such facts and upon the
recording of such notice:
(a) The property shall be deemed to be owned in common by the unit
owners;
(b) The undivided interest in the property owned in common which shall
appertain to each unit owner shall be the percentage of undivided interest
previously owned by such owner in the common elements;
(c) Any liens affecting any of the units shall be deemed to be
transferred in accordance with the existing priorities to the undivided
interest of the unit owner in the property as provided herein; and
(d) The property shall be subject to an action for partition at the suit
of any unit owner, in which event the net proceeds of sale, together with
the net proceeds of the insurance on the property, if any, shall be
considered as one fund and shall be divided among all the unit owners in a
percentage equal to the percentage of undivided interest owned by each
owner in the property, after first paying out of the respective shares of
the unit owners, to the extent sufficient for the purpose, all liens on the
undivided interest in the property owned by each unit owner.
(2) In the case of fire or other disaster in which fewer than
1/2 of the units are rendered uninhabitable: the condominium
instruments may provide for the reconstruction of the building or
other portion of the property, if the insurance proceeds are insufficient
to reconstruct, upon the affirmative vote of not fewer than
3/4 of the owners voting at a meeting called for that purpose. The
meeting shall be held within 30 days following the final adjustment
of insurance claims, if any. Otherwise,
such meeting shall be held within 90 days of the occurrence. At
such meeting the board of managers, or its representative, shall present
to the members present an estimate of the cost of
repair or reconstruction, and the estimated amount of necessary assessments
against each unit owner.
(3) In the case of fire or other disaster, the condominium instruments
may provide for the withdrawal of any portion of the property if the
insurance proceeds are insufficient to reconstruct the portion of the
property affected.
Upon the withdrawal of any unit or portion thereof, the percentage of
interest in the common elements appurtenant to such unit or portion
thereof shall be reallocated among the remaining units on the basis of
the percentage of interest of each remaining unit. If only a portion of
a unit is withdrawn, the percentage of interest appurtenant to that unit
shall be reduced accordingly, upon the basis of diminution in market value
of the unit, as determined by the board of managers. The payment of just
compensation, or the allocation of any insurance, or other proceeds to any
withdrawing or remaining unit
owner shall be on an equitable basis, which need not be a unit's percentage
interest. Any insurance or other proceeds available in connection with
the withdrawal of any portion of the common elements, not necessarily
including the limited common elements, shall be allocated on the basis
of each unit owner's percentage interest therein. The declaration may
provide that proceeds available from the withdrawal of any limited common
element will be distributed in accordance with the interests of those
entitled to their use. The condominium instruments shall provide for
the cessation of responsibility for the payment
of assessments for any unit or portion thereof withdrawn from the condominium.
(Source: P.A. 80-1117.)
(765 ILCS 605/14.1) (from Ch. 30, par. 314.1)
Sec. 14.1.
Disposition or removal of any portion of the
property.
(a) The condominium instruments may provide for
the withdrawal of any portion of the property in connection
with eminent domain proceedings in compliance with the
provisions of this Act. Upon the withdrawal of any unit
or portion thereof, the percentage of interest in the
common elements appurtenant to such unit or portion thereof
shall be reallocated among the remaining units on the basis
of the percentage of interest of each remaining unit. If
only a portion of a unit is withdrawn, the percentage of
interest appurtenant to that unit shall be reduced accordingly,
upon the basis of diminution in market value of the unit, as
determined by the board of managers. The allocation of any
condemnation award or other proceeds to any withdrawing or
remaining unit owner shall be on an equitable basis, which
need not be a unit's percentage interest. Any condemnation
award or other proceeds available in connection with the
withdrawal of any portion of the common elements, not necessarily
including the limited common elements, shall be allocated on the
basis of each unit owner's percentage interest therein. The
declaration may provide that proceeds available from the withdrawal
of any limited common element will be distributed in accordance
with the interests of those entitled to their use. The
condominium instruments shall provide for the cessation of
responsibility for the payment of assessments for any unit
or portion thereof withdrawn from the condominium.
In the event that the unit owners' association is named as defendant in
an eminent domain proceeding on behalf of all unit owners, then the payment
of the proceeds of the eminent domain proceeding attributable to the taking
or damaging of the common element shall be according to this Section unless
the condominium instrument or declaration of a common interest community
expressly provides for different procedures. This Section shall also apply
to eminent domain proceedings in which the unit owners' association of a
common interest community is named as a defendant on behalf of all unit
owners.
(b) Notwithstanding anything to the contrary contained in this Section,
in a leasehold condominium, any allocation of any condemnation award or other
proceeds available in connection with the withdrawal of any portion of the
property shall include an equitable allocation to the lessor. The allocation
shall take into account any provisions of the lease described in item (x) of
Section 2 of this Act concerning such allocations.
(Source: P.A. 89-89, eff. 6-30-95.)
(765 ILCS 605/14.2) (from Ch. 30, par. 314.2)
Sec. 14.2.
Street and utilities dedication.
Unless the condominium instrument expressly provides for a greater
percentage or different procedures a
two-thirds majority of the unit owners at a meeting of unit owners duly called
for such purpose may elect to dedicate a portion of the common elements
to a public body for use as, or in connection with, a street or utility.
Where such a dedication is made, nothing in this Act or any other law
shall be construed to require that the real property taxes of every unit
of the condominium must be paid prior to recordation of the dedication.
(Source: P.A. 83-833.)
(765 ILCS 605/14.3) (from Ch. 30, par. 314.3)
Sec. 14.3. Granting of easement for laying of cable television or high speed Internet cable. Unless the condominium instrument expressly provides for a greater
percentage or different procedures a majority of more than 50% of the
unit owners at a meeting of
unit owners duly called for such purpose may authorize the granting of
an easement for the laying of cable television or high speed Internet cable. The grant of such
easement shall be according to the terms and conditions of the local ordinance
providing for cable television or high speed Internet in the municipality.
(Source: P.A. 97-751, eff. 1-1-13.)
(765 ILCS 605/14.4) (from Ch. 30, par. 314.4)
Sec. 14.4.
Granting of easement to a governmental body for protection
against water damage or erosion. Unless the condominium instrument expressly
provides for a greater percentage or different procedures, a majority of
more than 50% of the unit owners at a meeting of unit owners duly called
for such purpose may authorize the granting of an easement to a governmental
body for construction, maintenance or repair of a project for protection
against water damage or erosion.
(Source: P.A. 84-1423.)
(765 ILCS 605/14.5)
Sec. 14.5. Distressed condominium property.
(a) As used in this Section:
(b) A proceeding under this Section shall be commenced by a municipality filing a verified petition or verified complaint in the circuit court in the county in which the property is located. The petition or complaint shall allege conditions specified in paragraph (1) of subsection (a) of this Section and shall request the relief available under this Section. All owners shall be named as defendants in the petition or complaint and summons shall be issued and service shall be had as in other civil cases. All known other parties in interest shall be provided written notice and a copy of the petition or complaint either by United States certified mail, return receipt requested, within 30 days of the issuance of the summons or by personal service of the complaint. The hearing upon the suit shall be expedited by the court and shall be given precedence over other actions.
(c) If a court finds that the property is a distressed condominium property:
A copy of the court's declaration under paragraph (2) of this subsection (c) shall be recorded by the municipality in the office of the recorder of deeds in the county where the property is located against both the individual units and owners and the general property. The court's declaration shall be forwarded to the county assessor's office in the county where the property is located.
(d) If a court finds that property is subject to paragraph (2) of subsection (c) of this Section, the court may upon a motion filed, notice given to all owners and other parties in interest as provided in subsection (b) and those parties having an opportunity to be heard, authorize the receiver to enter into a sales contract and transfer the title of the property on behalf of the owners of the property. In the event of such a sale, the net proceeds of the sale, after payment of all the receiver's costs, time, expenses, and fees as approved by the court, shall be deposited into an escrow account. Proceeds in the escrow account shall be segregated into the respective shares of each unit owner as determined under subparagraph (C) of paragraph (2) of subsection (c) of this Section and shall be distributed from each respective share as follows: (1) to pay taxes attributable to the unit owner; then (2) to pay other liens attributable to the unit owner; and then (3) to pay each unit owner any remaining sums from his or her respective share.
(e) A receiver appointed under this Section shall have possession of the property and shall have full power and authority to operate, manage, and conserve the property. A receiver appointed pursuant to this Section must manage the property as would a prudent person. A receiver may, without an order of the court, delegate managerial functions to a person in the business of managing real estate of the kind involved who is financially responsible and prudently selected.
Without limiting the foregoing, a receiver during such time shall have the power and authority to:
(f) If the court orders the appointment of a receiver, the receiver may use the rents and issues of the property toward maintenance, repair, and rehabilitation of the property prior to and despite any assignment of rents; and the court may further authorize the receiver to recover the cost of any feasibility study, sale, management, maintenance, repair, and rehabilitation by the issuance and sale of notes or receiver's certificates bearing such interest as the court may fix, and the notes or certificates, after their initial issuance and transfer by the receiver, shall be freely transferable and when sold or transferred by the receiver in return for a valuable consideration in money, material, labor, or services shall be a first lien upon the real estate and the rents and issues thereof and shall be superior to all prior assignments of rents and all prior existing liens and encumbrances, except taxes; provided, that within 90 days of the sale or transfer for value by the receiver of a note or certificate, the holder thereof shall file notice of the lien in the office of the recorder in the county in which the real estate is located. The notice of the lien filed shall set forth (i) a description of the real estate affected sufficient for the identification thereof, (ii) the face amount of the receiver's note or certificate, together with the interest payable thereon, and (iii) the date when the receiver's note or certificate was sold or transferred for value by the receiver. Upon payment to the holder of the receiver's note or certificate of the face amount thereof together with any interest thereon to the date of payment, and upon the filing of record of a sworn statement of such payment, the lien of such certificate shall be released. The lien may be enforced by proceedings to foreclose as in the case of a mortgage or a mechanics lien, and the action to foreclose the lien may be commenced at any time after the date of default. For the purposes of this subsection, the date of default shall be deemed to occur 30 days from the date of issuance of the receiver's certificate if at that time the certificate remains unpaid in whole or in part. The receiver's lien shall be paid upon the sale of the property as set forth in subsection (d) of this Section.
(g) The court may remove a receiver upon a showing of good cause, in which case a new receiver may be appointed in accordance with this Section.
(Source: P.A. 96-174, eff. 1-1-10.)
(765 ILCS 605/15) (from Ch. 30, par. 315)
Sec. 15. Sale of property.
(a) Unless a greater percentage is provided for in the declaration or
bylaws, and notwithstanding the provisions of Sections 13 and 14 hereof,
a majority of the unit owners where the property contains 2 units, or not
less than 66 2/3% where the property contains three units, and not less
than 75% where the property contains 4 or more units may, by affirmative
vote at a meeting of unit owners duly called for such purpose, elect to
sell the property. Such action shall be binding upon all unit owners, and
it shall thereupon become the duty of every unit owner to execute and
deliver such instruments and to perform all acts as in manner and form may
be necessary to effect such sale, provided, however, that any unit owner
who did not vote in favor of such action and who has filed written
objection thereto with the manager or board of managers within 20 days
after the date of the meeting at which such sale was approved shall be
entitled to receive from the proceeds of such sale an amount equivalent to
the greater of: (i) the value of his or her interest, as determined by a fair appraisal, less the
amount of any unpaid assessments or charges due and owing from such unit
owner or (ii) the outstanding balance of any bona fide debt secured by the objecting unit owner's interest which was incurred by such unit owner in connection with the acquisition or refinance of the unit owner's interest, less the amount of any unpaid assessments or charges due and owing from such unit owner. The objecting unit owner is also entitled to receive from the proceeds of a sale under this Section reimbursement for reasonable relocation costs, determined in the same manner as under the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended from time to time, and as implemented by regulations promulgated under that Act.
(b) If there is a disagreement as to the value of the
interest of a unit owner who did not vote in favor of the sale of the
property, that unit owner shall have a right to designate an expert in
appraisal or property valuation to represent him, in which case, the
prospective purchaser of the property shall designate an expert in
appraisal or property valuation to represent him, and both of these experts
shall mutually designate a third expert in appraisal or property valuation.
The 3 experts shall constitute a panel to determine by vote of at least 2
of the members of the panel, the value of that unit owner's interest in
the property. The changes made by this amendatory Act of the 100th General Assembly apply to sales under this Section that are pending or commenced on and after the effective date of this amendatory Act of the 100th General Assembly.
(Source: P.A. 100-292, eff. 1-1-18.)
(765 ILCS 605/16) (from Ch. 30, par. 316)
Sec. 16.
Removal
from provisions of this Act.
All of the unit owners may remove the property from the provisions of
this Act by an instrument to that effect, duly recorded, provided that the
holders of all liens affecting any of the units consent thereto or agree,
in either case by instruments duly recorded, that their liens be
transferred to the undivided interest of the unit owner. Upon such removal
the property shall be deemed to be owned in common by all the owners. The
undivided interest in the property owned in common which shall appertain to
each owner shall be the percentage of undivided interest previously owned
by such owner in the common elements.
(Source: Laws 1963, p. 1120.)
(765 ILCS 605/17) (from Ch. 30, par. 317)
Sec. 17.
Amendments to the declaration or bylaws.
(a) The administration of every property shall be governed by bylaws, which
may either be embodied in the declaration or in a separate instrument, a
true copy of which shall be appended to and recorded with the declaration.
No modification or amendment of the declaration or bylaws shall be valid
unless the same is set forth in an amendment thereof and such amendment is
duly recorded. An amendment of the declaration or bylaws shall be deemed
effective upon recordation unless the amendment sets forth a different effective date.
(b) Unless otherwise provided by this Act, amendments to condominium instruments
authorized to be recorded shall be executed and recorded by the president
of the association or such other officer authorized by the board of managers.
(Source: P.A. 83-833.)
(765 ILCS 605/18) (from Ch. 30, par. 318)
Sec. 18. Contents of bylaws. The bylaws shall provide for at least
the following:
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. 102-162, eff. 1-1-22.)
(765 ILCS 605/18.1) (from Ch. 30, par. 318.1)
Sec. 18.1.
(a) The owner or owners of the property, or the board of
managers, may cause to be incorporated a not-for-profit
corporation under the General Not For Profit Corporation Act of the
State of Illinois for the purpose of facilitating the administration
and operation of the property.
(b) The Secretary of State shall include on the application of the
Articles of Incorporation under the General Not For Profit Corporation
Act and the annual report form and such other forms as he deems
necessary a question asking whether the corporation is a condominium
association under the provisions of this Act.
(c) The Secretary of State shall maintain a computer record
of all not for profit corporations which are condominium
associations in this State and their current officers and members of the
Board of Managers or Board of Directors, as shown on the latest annual
report or the articles of incorporation, whichever is more current.
(d) The board of directors of such corporation shall constitute the board of
managers provided for in this Act, and all of the rights, titles, powers,
privileges and obligations vested in or imposed upon the board of managers
in this Act and in the declaration may be held or performed by such
corporation or by the duly elected members of the board of directors
thereof and their successors in office.
(e) Nothing in this Section shall be construed to affect the ownership
of the property.
(Source: P.A. 88-417.)
(765 ILCS 605/18.2) (from Ch. 30, par. 318.2)
Sec. 18.2.
Administration of property prior to election of initial board of
managers.
(a) Until election of the initial board of managers that is comprised of a
majority of unit owners other than the developer (first unit owner board of
managers), the same rights, titles, powers, privileges, trusts, duties and
obligations vested in or imposed upon the board of managers by this Act and in
the declaration and bylaws shall be held and performed by the developer.
(b) (i) The election of the first unit owner board of managers 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 such meeting to elect the first unit owner board of managers and shall 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 such meeting. Any unit owner shall be provided with the same information within 10 days of receipt of the request, with respect to each subsequent meeting to elect members of the Board of Managers.
(c) If the first unit board of managers
is not elected at the time so established, 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 entitled to vote at such election.
(d) Within 60 days following the election of the first unit owner
board of managers, the developer shall deliver to the board of managers:
(e) Upon election of the first unit owner board of managers, any contract,
lease, or other agreement made prior to the date of election of the first unit
owner board by or on behalf of unit owners, individually or collectively, the
unit owners' association, the board of managers, or the developer or its
affiliates which extends for a period of more than 2 years from the date of the
election, shall be subject to cancellation by a majority of the votes of the
unit owners other than the developer cast at a special meeting of members
called for that purpose during the 180 day period beginning on the date of the
election of the first unit owner board. At least 60 days prior to the
expiration of the 180 day cancellation period, the board of
managers shall send notice to every unit owner, notifying them of
this provision, what contracts, leases and other agreements are affected,
and the procedure for calling a meeting of the unit owners for the purpose
of voting on termination of such contracts, leases or other agreements.
During the 180 day cancellation period the other party to the
contract, lease, or other agreement shall also have the right of cancellation.
The cancellation shall be effective 30 days after mailing notice by certified
mail, return receipt requested, to the last known address of the other parties
to the contract, lease, or other agreement.
(f) The statute of limitations for any actions in law or equity which
the condominium association may bring shall not begin to run until the unit
owners have elected a majority of the members of the board of managers.
(g) If the developer fails to fully comply with subsection (d) 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 subsection (d). 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.
(Source: P.A. 91-616, eff. 8-19-99.)
(765 ILCS 605/18.3) (from Ch. 30, par. 318.3)
Sec. 18.3.
Unit Owners' Association.
The unit owners' association is
responsible for the overall administration of the property through its duly
elected board of managers. Each unit owner shall be a member of the
association. The association, whether or not it is incorporated, shall have
those powers and responsibilities specified in the General Not For Profit
Corporation Act of 1986 that are not inconsistent with this Act or the
condominium instruments, including but not limited to the power to acquire and
hold title to land. Such land is not part of the common elements unless and
until it has been added by an amendment of the condominium instruments,
properly executed and placed of record as required by this Act. The
association shall have and exercise all powers necessary or convenient to
effect any or all of the purposes for which the association is organized, and
to do every other act not inconsistent with law which may be appropriate to
promote and attain the purposes set forth in this Act or in the condominium
instruments.
(Source: P.A. 87-1236.)
(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:
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. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17; 100-292, eff. 1-1-18.)
(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).
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.
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.
(d) Records.
(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.
(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:
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 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.
(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. 100-416, eff. 1-1-18.)
(765 ILCS 605/18.6)
Sec. 18.6.
Display of American flag or military flag.
(a) Notwithstanding any provision in the declaration, bylaws, rules,
regulations, or
agreements or other instruments of a condominium association or a master
association or
a common interest community association or a board's construction of any of
those
instruments,
a board may not prohibit the display of the American flag or a military flag,
or both, on or within the
limited common areas and facilities of a unit owner or on the immediately
adjacent
exterior of the building in which the unit of a unit owner is located. A board
may adopt
reasonable rules and regulations, consistent with Sections 4 through 10 of
Chapter 1 of
Title 4 of the United States Code, regarding the placement and manner of
display of the
American flag and a board may adopt reasonable rules and regulations
regarding the placement and manner of display of a military flag. A board may
not prohibit the installation of a flagpole for the display of
the American flag or a military flag, or both, on or within the limited common
areas and facilities of a
unit owner or
on the immediately adjacent exterior of the building in which the unit of a
unit owner is
located, but a board may adopt reasonable rules and regulations regarding the
location
and size of flagpoles.
(b) As used in this Section:
"American flag" means the flag of the United States (as defined in Section 1
of
Chapter 1 of Title 4 of the United States Code and the Executive Orders entered
in
connection with that Section) made of fabric, cloth, or paper displayed from a
staff or
flagpole or in a window, but "American flag" does not include a depiction or
emblem of
the American flag made of lights, paint, roofing, siding, paving materials,
flora, or
balloons, or any other similar building, landscaping, or decorative component.
"Board" includes a board of managers or a board of a master association or a
common interest community association.
"Military flag" means a flag of any branch of the United States armed
forces
or
the Illinois National Guard made of fabric, cloth, or paper displayed from a
staff or
flagpole or in a window, but "military flag" does not include a depiction or
emblem of a
military flag made of lights, paint, roofing, siding, paving materials, flora,
or balloons, or
any other similar building, landscaping, or decorative component.
(Source: P.A. 93-481, eff. 1-1-04.)
(765 ILCS 605/18.7)
Sec. 18.7. Standards for community association managers.
(a) "Community association" means an association in which membership is a condition of ownership or shareholder interest of a unit in a condominium, cooperative, townhouse, villa, or other residential unit that is part of a residential development plan as a master association or common interest community and that is authorized to impose an assessment and other costs that may become a lien on the unit or lot.
(b) "Community association manager" means an individual who administers for compensation the coordination of financial, administrative, maintenance, or other duties called for in the management contract, including individuals who are direct employees of a community association. A manager does not include support staff, such as bookkeepers, administrative assistants, secretaries, property inspectors, or customer service representatives.
(c) Requirements. To perform services as a community association manager, an individual must meet these requirements:
(d) Access to community association funds. For community associations of 6 or more units, apartments, townhomes, villas or other residential units, a community association manager or the firm with whom the manager is employed shall not solely and exclusively have access to and disburse funds of a community association unless:
(e) A community association manager who provides community association management services for more than one community association shall maintain separate, segregated accounts for each community association. The funds shall not, in any event, be commingled with funds of the community association manager, the firm of the community association manager, or any other community association. The maintenance of these accounts shall be custodial, and the accounts shall be in the name of the respective community association.
(f) Exempt persons. Except as otherwise provided, this Section does not apply to any person acting as a receiver, trustee in bankruptcy, administrator, executor, or guardian acting under a court order or under the authority of a will or of a trust instrument.
(g) Right of Action.
(Source: P.A. 95-318, eff. 1-1-08.)
(765 ILCS 605/18.8)
Sec. 18.8. Use of technology.
(a) Any notice required to be sent or received or signature, vote, consent, or approval required to be obtained under any condominium instrument or any provision of this Act may be accomplished using acceptable technological means. This Section shall govern the use of technology in implementing the provisions of any condominium instrument or any provision of this Act concerning notices, signatures, votes, consents, or approvals.
(b) The association, unit owners, and other persons entitled to occupy a unit may perform any obligation or exercise any right under any condominium instrument or any provision of this Act by use of acceptable technological means.
(c) A signature transmitted by acceptable technological means satisfies any requirement for a signature under any condominium instrument or any provision of this Act.
(d) Voting on, consent to, and approval of any matter under any condominium instrument or any provision of this Act may be accomplished by any acceptable technological means, provided that a record is created as evidence thereof and maintained as long as the record would be required to be maintained in nonelectronic form.
(e) Subject to other provisions of law, no action required or permitted by any condominium instrument or any provision of this Act need be acknowledged before a notary public if the identity and signature of the signatory can otherwise be authenticated to the satisfaction of the board of directors or board of managers.
(f) If any person does not provide written authorization to conduct business using acceptable technological means, the association shall, at its expense, conduct business with the person without the use of acceptable technological means.
(g) This Section does not apply to any notices required: (i) under Article IX of the Code of Civil Procedure; or (ii) in connection with foreclosure proceedings in enforcement of any lien rights under this Act.
(Source: P.A. 98-1042, eff. 1-1-15; 99-78, eff. 7-20-15; 99-612, eff. 1-1-17.)
(765 ILCS 605/18.9)
Sec. 18.9. Common elements; rights of board.
(a) Any provision in a condominium instrument is void as against public policy and ineffective if it limits or restricts the rights of the board of managers by:
(b) A provision in a declaration which would otherwise be void and ineffective under this Section may be enforced if it is approved by a vote of not less than 75% of the unit owners at any time after the election of the first unit owner board of managers.
(Source: P.A. 98-1068, eff. 1-1-15; 99-78, eff. 7-20-15.)
(765 ILCS 605/18.10)
Sec. 18.10. Generally accepted accounting principles. An association subject to this Act that consists of 100 or more units shall use generally accepted accounting principles in fulfilling any accounting obligations under this Act.
(Source: P.A. 100-292, eff. 1-1-18.)
(765 ILCS 605/19) (from Ch. 30, par. 319)
Sec. 19. Records of the association; availability for examination.
(a) The board of managers of every association shall keep and maintain the
following records, or true and complete copies of these records, at the
association's principal office:
(b) Any member of an association shall have the right to inspect, examine,
and make copies of the records described in subdivisions (1), (2), (3), (4),
(5), (6), (9), and (10) of subsection (a) of this Section, in person or by agent, at any
reasonable time or times, at the association's principal office. In order
to exercise this right, a member must submit a written request to the
association's board of managers or its authorized agent, stating with
particularity the records sought to be examined. Failure of an association's
board of managers to make available all records so requested within 10 business days of
receipt of the member's written request shall be deemed a denial.
Any member who prevails in an enforcement action to compel examination of
records described in subdivisions (1), (2), (3), (4), (5), (6), (9), and (10) of subsection (a)
of this Section shall be entitled to recover reasonable attorney's fees and
costs from the association.
(c) (Blank).
(d) (Blank).
(d-5) As used in this Section, "commercial purpose" means the use of any part of a record or records described in subdivisions (7) and (8) of subsection (a) of this Section, or information derived from such records, in any form for sale, resale, or solicitation or advertisement for sales or services.
(e) Except as otherwise provided in subsection (g) of this
Section, any member of an association shall have the right to inspect, examine,
and make copies of the records described in subdivisions (7) and (8) of subsection (a) of this Section, in person or by agent, at any reasonable
time or times but only for a purpose that relates to the association, at the association's principal
office. In order to exercise this right, a member must submit a written
request, to the association's board of managers or its authorized agent,
stating with particularity the records sought to be examined. As a condition for exercising this right, the board of managers or authorized agent of the association may require the member to certify in writing that the information contained in the records obtained by the member will not be used by the member for any commercial purpose or for any purpose that does not relate to the association. The board of managers of the association may impose a fine in accordance with item (l) of Section 18.4 upon any person who makes a false certification. Subject to the provisions of subsection (g) of this Section, failure of an association's board of managers to make
available all records so requested within 10 business days of receipt of the
member's written request shall be deemed a denial; provided, however, that the
board of managers of an association that has adopted a secret ballot election
process as provided in Section 18 of this Act shall not be deemed to have
denied a member's request for records described in subdivision (8) of
subsection (a) of this Section if voting ballots, without identifying unit
numbers, are made available to the requesting member within 10 business days of receipt
of the member's written request.
Any member who prevails in an enforcement action to compel
examination of records described in subdivision (7) or (8) of
subsection (a) of this Section shall be entitled to recover reasonable
attorney's fees and costs from the association only if the court finds that
the board of directors acted in bad faith in denying the member's request.
(f) The actual cost to the association of retrieving and making requested
records available for inspection and examination under this Section may be
charged by the association to the requesting member. If a member requests
copies of records requested under this Section, the actual costs to the
association of reproducing the records may also be charged by the association
to the requesting member.
(g) Notwithstanding the provisions of subsection (e) of this Section, unless
otherwise directed by court order, an association need not make the following
records available for inspection, examination, or copying by its members:
(h) The provisions of this Section are applicable to all condominium
instruments recorded under this Act. Any portion of a condominium instrument
that contains provisions contrary to these provisions shall be void as against
public policy and ineffective. Any condominium instrument that fails to
contain the provisions required by this Section shall be deemed to incorporate
the provisions by operation of law.
(Source: P.A. 102-921, eff. 5-27-22.)
(765 ILCS 605/20) (from Ch. 30, par. 320)
Sec. 20.
Exemption
from rules of property.
It is expressly provided that the rule of property known as the rule
against perpetuities and the rule of property known as the rule restricting
unreasonable restraints on alienation shall not be applied to defeat any of
the provisions of this Act.
(Source: Laws 1963, p. 1120.)
(765 ILCS 605/21) (from Ch. 30, par. 321)
Sec. 21.
Severability.
If any provision of this Act or any section, sentence, clause, phrase or
word, or the application thereof in any circumstance, is held invalid, the
validity of the remainder of the Act and of the application of any such
provision, section, sentence, clause, phrase or word in any other
circumstances shall not be affected thereby.
(Source: Laws 1963, p. 1120.)
(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:
(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 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:
(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;
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
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 obtain from the Board
of Managers and shall make available for inspection to the prospective
purchaser, upon demand, the following:
(b) 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 and within 10 business 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 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 attorney's fees and such other damages,
if any, incurred by the association as a result of such failure or refusal.
A reasonable fee, not to exceed $375, covering the 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. Beginning one year after the effective date of this amendatory Act of the 102nd General Assembly, the $375 fee shall be increased or decreased, as applicable, by a percentage equal to the percentage change in the consumer price index-u during the preceding 12-month calendar year. "Consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. An association may charge an additional $100 for rush service completed within 72 hours.
(Source: P.A. 102-976, eff. 1-1-23.)
(765 ILCS 605/22.2)
Sec. 22.2. Resale approval. In the event of a sale of a condominium unit by a unit owner, no condominium association shall exercise any right of refusal, option to purchase, or right to disapprove the sale, on the basis that the purchaser's financing is guaranteed by the Federal Housing Administration.
(Source: P.A. 98-463, eff. 8-16-13.)
(765 ILCS 605/23) (from Ch. 30, par. 323)
Sec. 23.
Encroachments).
If any portion of the common elements
encroaches upon any unit, or if any unit encroaches upon any portion
of the common elements or any other unit as a result of the construction,
repair, reconstruction, settlement or shifting of any building, a valid
mutual easement shall exist in favor of the owners of the common elements
and the respective unit owners involved to the extent of the encroachment.
A valid easement shall not exist in favor of any owner who creates
an encroachment by his intentional, wilful or negligent conduct or
that of his agent.
(Source: P.A. 80-1115.)
(765 ILCS 605/24) (from Ch. 30, par. 324)
Sec. 24.
Deposits by Purchaser.
Any deposit, payment or advance in
the payment of the purchase price for the initial sale of a unit, received
by the developer or his agent other than a payment made for extra work ordered
in writing by the purchaser of a unit, shall be held in an escrow account until
title is conveyed to the purchaser. The escrow funds shall be segregated in a
separate account designated for this purpose. The developer shall deposit all
the payments in an interest bearing account at a federally insured bank or
savings and loan institution, which account shall be maintained within
applicable federal insurance limits, and all the interest is to be credited to
the purchaser on the purchase price of the unit. Such interest shall accrue
from the time of the deposit, payment or advance in the payment of the purchase
price of the unit. There shall be no interest however, if the transfer of title
takes place 45 days from the time the contract to purchase is entered. In the
event of a refund or default, the interest earned on such deposit, payment or
advance shall follow the disposition of the deposit, payment or advance. Escrow
funds shall not be subject to attachment by any creditor of a purchaser or of
the developer or by the holder of a lien against any portion of the property.
The provisions of this Section shall not apply to any payment
received on account for the purchase of a completed condominium unit
under articles of agreement for deed, installment agreement for deed, or
lease with option to purchase, if the agreement provides for conveyance
of title more than one year after the date of execution of the agreement.
(Source: P.A. 88-417.)
(765 ILCS 605/25) (from Ch. 30, par. 325)
Sec. 25. Add-on Condominiums. The developer may reserve the right
to add additional property to that which has been submitted to the
provisions of this Act, and in the event of any addition, to reallocate
percentage interests in the common elements in accordance with the
provisions of this Act and the condominium instruments by: recording an
amended plat in accordance with the provisions of Section 5 of this Act,
together with an amendment to the declaration in accordance with Section
6 of this Act. Notwithstanding any other provisions of this Act
requiring approval of unit owners, no approval shall be required if the
developer complies with the requirements of this Section.
If the developer wishes to reserve the right to add additional
property, the declaration shall contain:
(a) an explicit reservation of an option to add additional
property to the condominium;
(b) a statement of the method by which the reallocation of
percentage interests, adjustments to voting rights, and rights, and
changes in liability for common expenses shall be determined if
additional units are added;
(c) a legal description of all land which may be added to the
property, herein referred to as 'additional land' whether the units are
occupied or not;
(d) a time limit of 10 years from the date of the recording of the
declaration, after which the option to add additional property shall no
longer be in effect and a statement of the circumstances, if any, under
which it may terminate. In all cases in which the option to add
additional property is exercised, the contracts for construction and
delivery of such additional property shall contain a date for the
completion and delivery of the additional property to be constructed;
(e) a statement as to whether portions of the additional land may
be added to the property at different times, and as to whether there are
any limitations on the order thereof, or any limitations fixing the
boundaries of these portions, or whether any particular portion of it
must be added;
(f) a statement concerning limitations, if any, on the locations
of improvements which may be made on the additional land added;
(g) a statement of the maximum number of units, if any, which may
be created on the additional land. If portions of the additional land
may be added to the property and the boundaries of those portions are
fixed in accordance with paragraph (e) of this Section, the declaration
shall also state the maximum number of units that may be created on each
such portion to be added to the property. If portions of the additional
land may be added to the property and the boundaries of those portions
are not fixed in accordance with paragraph (e) of this Section, then the
declaration shall also state the largest number of units which may be
created on each acre of any portion added to the property;
(h) a statement of the extent to which structures, improvements,
buildings and units will be compatible with the configuration of the
property in relation to density, use, construction and architectural
style; and
(i) any plat or site plans or other graphic material which the
developer may wish to set forth in order to supplement or explain the
information provided.
Subject to any restrictions and limitations specified by the
condominium instruments, there shall be an appurtenant easement over and
on the common elements for the purpose of making improvements on the
additional land, and for the purpose of doing what is reasonably
necessary and proper in conjunction therewith.
No provision of this Act shall be binding upon or obligate the
developer to exercise his option to make additions or bind the land
described in the condominium instruments. No provision of the
condominium instruments shall be construed to be binding upon or
obligate the developer to exercise his option to make additions, and the
land legally described therein shall not be bound thereby, except in the
case of any covenant, restriction, limitation, or other representation
or commitment in the condominium instruments, or in any other agreement
made with, or by, the developer, requiring the developer to add all or
any portion of the additional land, or imposing any obligation with
regard to anything that is or is not to be done thereon or with regard
thereto, or imposing any obligations with regard to anything that is or
is not to be done on or with regard to the property or any portion
thereof, this Section shall not be construed to nullify, limit, or
otherwise affect any such obligation.
Any amendment to the declaration adding additional land may contain
such complementary additions and modifications of the provisions of the
declaration affecting the additional land which are necessary to reflect
the differences in character, if any, of the additional land and the
improvements thereto. In no event, however, shall any such amendment to
a declaration revoke, modify or add to the covenants established by the
declaration for the property already subject to the declaration.
(Source: P.A. 96-328, eff. 8-11-09.)
(765 ILCS 605/26) (from Ch. 30, par. 326)
Sec. 26.
Transfer of Limited Common Elements.) The use of limited
common elements may be transferred between unit owners at their expense,
provided that the transfer may be made only in accordance with the
condominium instruments and the provision of this Act. Each transfer
shall be made by an amendment to the declaration executed by all unit
owners who are parties to the transfer and consented to by all other
unit owners who have any right to use the limited common elements
affected. The amendment shall contain a certificate showing that a copy
of the amendment has been delivered to the board of managers. The
amendment shall contain a statement from the parties involved in the
transfer which sets forth any changes in the parties' proportionate
shares. If the parties cannot agree upon a reapportionment of their
respective shares, the board of managers shall decide such
reapportionment. No transfer shall become effective until the amendment
has been recorded. Rights and obligations in respect to any limited
common element shall not be affected, nor shall any transfer of it be
effective, unless a transaction is in compliance with the requirements
of this Section.
Each limited common element may be identified on the plat by the
distinguishing number or other symbol of the unit or units to which it
is assigned, and its location in respect to the unit or units may also
be shown or may be otherwise located in the declaration.
(Source: P.A. 80-1364.)
(765 ILCS 605/27) (from Ch. 30, par. 327)
Sec. 27. Amendments.
(a) If there is any unit owner other than the developer, and unless otherwise provided in this Act,
the condominium instruments shall be amended only as follows:
(b)(1) If there is an omission, error, or inconsistency in a condominium instrument, such that a provision of a condominium instrument does not conform to this Act or to another applicable statute, the association may correct the omission, error, or inconsistency to conform the condominium instrument to this Act or to another applicable statute by an amendment adopted by vote of two-thirds of the Board of Managers, without a unit owner vote. A provision in a condominium instrument requiring or allowing unit owners, mortgagees, or other lienholders of record to vote to approve an amendment to a condominium instrument, or for the mortgagees or other lienholders of record to be given notice of an amendment to a condominium instrument, is not applicable to an amendment to the extent that the amendment corrects an omission, error, or inconsistency to conform the condominium instrument to this Act or to another applicable statute.
(2) If through a scrivener's error, a unit has not been
designated as owning an appropriate undivided share of the common elements
or does not bear an appropriate share of the common expenses or that all
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 elements 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 Managers or a majority vote of the unit owners at a meeting called for
this purpose which proportionately adjusts all percentage interests so that
the total is equal to 100% unless the condominium instruments specifically
provide 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 elements, 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,
bylaws or other condominium instrument is corrected by vote of
two-thirds of the members of the
Board of Managers pursuant to the authority established in paragraph (1) or (2) of this subsection (b), the Board upon written petition by
unit owners with 20 percent of the votes of the association filed within
30 days of the Board action shall call a meeting of the unit owners within
30 days of the filing of the petition 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, it is ratified whether or not a quorum is present.
(4) The procedures for amendments set forth in this subsection (b) 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, bylaws, or other
condominium instruments, which may not be corrected by an amendment procedure
set forth in paragraphs (1) and (2) of this subsection (b) in the
declaration then the Circuit Court in the County in which the condominium
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 condominium instrument authorizing the developer to amend
a condominium 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.
(Source: P.A. 99-472, eff. 6-1-16; 100-201, eff. 8-18-17; 100-292, eff. 1-1-18; 100-863, eff. 8-14-18.)
(765 ILCS 605/29) (from Ch. 30, par. 329)
Sec. 29.
Alterations within Units.
A unit owner owning 2 or more units
shall have the right, subject to such reasonable limitations as the condominium
instruments may impose, to remove or otherwise alter any intervening partition,
so long as the action does not weaken, impair or endanger any common element
or unit. The unit owner shall notify the board of managers of the nature
of the removal or alteration at least 10 days prior to commencing work.
(Source: P.A. 80-1118.)
(765 ILCS 605/30) (from Ch. 30, par. 330)
Sec. 30. Conversion condominiums; notice; recording.
(a)(1) No real estate may be submitted to the provisions of the
Act as a conversion condominium unless (i) a notice of intent to submit
the real estate to this Act (notice of intent) has been given to all persons
who were tenants of the building located on the real estate on the date
the notice is given. Such notice shall be given at least 30 days, and
not more than one year prior to the recording of the declaration which submits
the real estate to this Act; and (ii) the developer executes and acknowledges
a certificate which shall be attached to and made a part of the declaration
and which provides that the developer, prior to the execution by him or
his agent of any agreement for the sale of a unit, has given a copy of the
notice of intent to all persons who were tenants of the building located
on the real estate on the date the notice of intent was given.
(b) Any developer of a conversion condominium must, upon issuing the notice
of intent, publish and deliver along with such notice of intent, a schedule
of selling prices for all units subject to the condominium instruments and
offer to sell such unit to the current tenants, except for units to be vacated
for rehabilitation subsequent to such notice of intent. Such offer shall
not expire earlier than 30 days after receipt of the offer by the current
tenant, unless the tenant notifies the developer in writing of his election
not to purchase the condominium unit.
(c) Any tenant who was a tenant as of the date of the notice of intent and
whose tenancy expires (other than for cause) prior to the expiration of
120 days from the date on which a copy of the notice of intent was given
to the tenant shall have the right to extend his tenancy on the same terms
and conditions and for the same rental until the expiration of such 120-day period by the giving of written notice thereof to the developer within
30 days of the date upon which a copy of the notice of intent was given
to the tenant by the developer.
(d) Each lessee in a conversion condominium shall be informed by the developer
at the time the notice of intent is given whether his tenancy will be renewed
or terminated upon its expiration. If the tenancy is to be renewed, the
tenant shall be informed of all charges, rental or otherwise, in connection
with the new tenancy and the length of the term of occupancy proposed in
conjunction therewith.
(e) For a period of 120 days following his receipt of the notice of intent,
any tenant who was a tenant on the date the notice of intent was given shall
be given the right to purchase his unit on substantially the same terms
and conditions as set forth in a duly executed contract to purchase the
unit, which contract shall conspicuously disclose the existence
of, and shall be subject to, the right of first refusal. The tenant may
exercise the right of first refusal by giving notice thereof to the developer
prior to the expiration of 30 days from the giving of notice by the developer
to the tenant of the execution of the contract to purchase the unit.
The tenant may exercise such right of first refusal within 30 days from
the giving of notice by the developer of the execution of a contract to
purchase the unit, notwithstanding the expiration of the 120-day period
following the tenant's receipt of the notice of intent, if such contract
was executed prior to the expiration of the 120-day period. The
recording of the deed conveying the unit to the purchaser which contains
a statement to the effect that the tenant of the unit either waived or failed
to exercise the right of first refusal or option or had no right of first
refusal or option with respect to the unit shall extinguish any legal or
equitable right or interest to the possession or acquisition of the unit which
the tenant may have or claim with respect to the unit arising out of the
right of first refusal or option provided for in this Section. The foregoing
provision shall not affect any claim which the tenant may have against
the landlord for damages arising out of the right of first refusal
provided for in this Section.
(f) During the 30-day period after the giving of notice of an executed contract
in which the tenant may exercise the right of first refusal, the developer
shall grant to such tenant access to any portion of the building to inspect
any of its features or systems and access to any reports, warranties, or
other documents in the possession of the developer which reasonably pertain
to the condition of the building. Such access shall be subject to reasonable
limitations, including as to hours. The refusal of the developer to grant
such access is a business offense punishable by a fine of $500. Each refusal
to an individual lessee who is a potential purchaser is a separate violation.
(g) Any notice provided for in this Section shall be deemed given when a written
notice is delivered in person or mailed, certified or registered mail, return
receipt requested to the party who is being given the notice.
(h) Prior to their initial sale, units offered for sale in a conversion
condominium and occupied by a tenant at the time of the offer shall be shown to
prospective purchasers only a reasonable number of times and at appropriate
hours. Units may only be shown to prospective purchasers during the last 90
days of any expiring tenancy.
(i) Any provision in any lease or other rental agreement, or any termination
of occupancy on account of condominium conversion, not authorized herein,
or contrary to or waiving the foregoing provisions, shall be deemed to be
void as against public policy.
(j) A tenant is entitled to injunctive relief to enforce the provisions of subsections (a) and (c) of this Section.
(k) A non-profit housing organization, suing on behalf of an aggrieved tenant under this Section, may also recover compensation for reasonable attorney's fees and court costs necessary for filing such action.
(l) Nothing in this Section shall affect any provision in any lease or rental
agreement in effect before this Act becomes law.
(m) Nothing in this amendatory Act of 1978 shall be construed to imply
that there was previously a requirement to record the notice provided for
in this Section.
(Source: P.A. 101-81, eff. 7-12-19.)
(765 ILCS 605/30.5)
Sec. 30.5. Conversion of apartments. In the case of the conversion of an apartment building into condominium units, a municipality shall have the right to inspect the apartment building prior to the conversion to condominium units and may require that each new proposed condominium unit comply with the current life safety, building, and zoning codes of the municipality.
(Source: P.A. 94-386, eff. 7-29-05.)
(765 ILCS 605/31) (from Ch. 30, par. 331)
Sec. 31. Subdivision or combination of units.
(a) As used in this Section, "combination of any units" means any 2 or more residential units to be used as a single unit as shown on the plat or amended plat, which may involve, without limitation, additional exclusive use of a portion of the common elements within the building adjacent to the combined unit (for example, without limitation, the use of a portion of an adjacent common hallway).
(b) Unless the condominium
instruments expressly prohibit the subdivision or combination of any units,
and subject to additional limitations provided by the condominium instruments,
the owner or owners may, at their own expense, subdivide or combine and locate
or relocate common elements affected or required thereby, in accordance
with the provisions of the condominium instruments and the requirements
of this Act. The owner or owners shall make written application to the
board of managers, requesting an amendment to the condominium instruments,
setting forth in the application a proposed reallocation to the new units
of the percentage interest in the common elements, and setting forth whether
the limited common elements, if any, previously assigned to the unit to
be subdivided should be assigned to each new unit or to fewer than all of
the new units created and requesting, if desired in the event of a
combination of any units, that the new unit be granted the exclusive right to
use as a limited common element, a portion of the common elements within the
building adjacent to the new unit. If the transaction is approved by a
majority of the board of managers, it shall be effective upon (1) recording of
an amendment to condominium instruments in accordance with the provisions of
Sections 5 and 6 of this Act, and (2) execution by the owners of the units
involved.
(c) In the event of a combination of any units, the amendment under subsection (b) may grant
the owner of the combined unit the exclusive right to use, as a limited common
element, a portion of the common elements within the building adjacent to the
new unit.
The request for the amendment shall be granted and the amendment shall grant
this exclusive right to use as a limited common element if the following
conditions are met:
(d) If the combined unit is divided, part of the original combined unit is
sold,
and the grant of the exclusive right to use as a limited common element is no
longer necessary, practical, or appropriate for the use and enjoyment of the
owner or owners of the original combined unit, the board may terminate the
grant of the exclusive right to use as a limited common element and require
that the owner or owners of the original combined unit restore the common area
to its condition prior to the grant of the exclusive right to use as a limited
common element. If the combined unit is sold without being divided, the grant
of the exclusive right to use as a limited common element shall apply to the
new owner or owners of the combined unit, who shall assume the rights and
responsibilities of the original owner or owners.
(e) Under this Section, the exclusive right to use as a limited common element any portion of the common elements that is not necessary or practical for use by the owners of any other units is not a diminution of the ownership interests of all other unit owners requiring unanimous consent of all unit owners under subsection (e) of Section 4 of this Act or any percentage set forth in the condominium instruments.
(f) Notwithstanding Section 27 of this Act and any other amendment provisions set forth in the condominium instruments, an amendment pursuant to this Section is effective if it meets the requirements set forth in this Section.
(Source: P.A. 100-292, eff. 1-1-18.)
(765 ILCS 605/32)
Sec. 32.
Alternate dispute resolution; mediation; arbitration.
(a) The declaration or bylaws of a condominium association may require
mediation or arbitration of disputes in which the matter in controversy has
either no specific monetary value or a value of $10,000 or less, other than the
levying and collection of assessments, or that arises out of violations of the
declaration, bylaws, or rules and regulations of the condominium association.
A dispute not required to be mediated or arbitrated by an association
pursuant to its powers under this Section, that is submitted to mediation or
arbitration by the agreement of the disputants, is also subject to this
Section.
(b) The Illinois Uniform Arbitration Act shall govern all arbitrations
proceeding under this Section.
(b-5) The Uniform Mediation Act shall govern all mediations proceeding
under this Section.
(c) The association may require the disputants to bear the costs of
mediation or arbitration.
(Source: P.A. 93-399, eff. 1-1-04.)
(765 ILCS 605/33)
Sec. 33. Limitations on the use of smoking cannabis. The condominium instruments of an association may prohibit or limit the smoking of cannabis, as the term "smoking" is defined in the Cannabis Regulation and Tax Act, within a unit owner's unit. The condominium instruments and rules and regulations shall not otherwise restrict the consumption of cannabis by any other method within a unit owner's unit, or the limited common elements, but may restrict any form of consumption on the common elements.
(Source: P.A. 101-27, eff. 6-25-19.)
(765 ILCS 605/35)
(Section scheduled to be repealed on January 1, 2024)
Sec. 35. Compliance with the Condominium and Common Interest Community Ombudsperson Act. Every unit owners' association must comply with the Condominium and Common Interest Community Ombudsperson Act and is subject to all provisions of the Condominium and Common Interest Community Ombudsperson Act. This Section is repealed January 1, 2024.
(Source: P.A. 102-921, eff. 5-27-22.)
Structure Illinois Compiled Statutes
765 ILCS 5/ - Conveyances Act.
765 ILCS 10/ - Seals and Real Estate Contracts Act.
765 ILCS 15/ - Land Patent Act.
765 ILCS 20/ - Covenants of Warranty Act.
765 ILCS 25/ - Acknowledgment Validation Act.
765 ILCS 30/ - Uniform Recognition of Acknowledgments Act.
765 ILCS 33/ - Uniform Real Property Electronic Recording Act.
765 ILCS 40/ - Torrens Repeal Law.
765 ILCS 45/ - Destroyed Public Records Act.
765 ILCS 50/ - Agricultural Foreign Investment Disclosure Act.
765 ILCS 60/ - Property Owned By Noncitizens Act.
765 ILCS 65/ - Uniform Vendor and Purchaser Risk Act.
765 ILCS 67/ - Installment Sales Contract Act.
765 ILCS 70/ - Dwelling Structure Contract Act.
765 ILCS 75/ - Dwelling Unit Installment Contract Act.
765 ILCS 77/ - Residential Real Property Disclosure Act.
765 ILCS 80/ - Real Estate Sale Validation Act.
765 ILCS 95/ - Mine Subsidence Disclosure Act.
765 ILCS 105/ - Building and Loan Mortgage Release Act.
765 ILCS 110/ - Building and Loan Deed Validation Act.
765 ILCS 115/ - Property of Unincorporated Associations Act.
765 ILCS 120/ - Real Property Conservation Rights Act.
765 ILCS 122/ - Uniform Environmental Covenants Act.
765 ILCS 125/ - Entry on Adjoining Land to Accomplish Repairs Act.
765 ILCS 135/ - Water Dam Use Act.
765 ILCS 140/ - Adjacent Landowner Excavation Protection Act.
765 ILCS 145/ - Transmission Line Prescriptive Right Prohibition Act.
765 ILCS 150/ - Industrialized Residential Structure Deed Restriction Act.
765 ILCS 155/ - Transfer Fee Covenant Act.
765 ILCS 160/ - Common Interest Community Association Act.
765 ILCS 165/ - Homeowners' Energy Policy Statement Act.
765 ILCS 170/ - Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
765 ILCS 210/ - Judicial Plat Act.
765 ILCS 215/ - Permanent Survey Act.
765 ILCS 220/ - Land Survey Monuments Act.
765 ILCS 225/ - Illinois Coordinate System Act.
765 ILCS 230/ - Coast and Geodetic Survey Act.
765 ILCS 330/ - Rights of Entry or Re-entry Act.
765 ILCS 335/ - Surrender or Merger of Reversion Act.
765 ILCS 340/ - Contingent Remainder Act.
765 ILCS 345/ - Rule in Shelley's Case Abolishment Act.
765 ILCS 350/ - Doctrine of Worthier Title Abolishment Act.
765 ILCS 405/ - Land Trust Beneficial Interest Disclosure Act.
765 ILCS 407/ - Land Trust Beneficiary Rights Act.
765 ILCS 410/ - Land Trust Successor Trustee Act.
765 ILCS 415/ - Land Trustee as Creditor Act.
765 ILCS 420/ - Land Trust Recordation and Transfer Tax Act.
765 ILCS 425/ - Building Law Violation Ownership Disclosure Act.
765 ILCS 430/ - Sale of Residential Property Subject to Land Trust Act.
765 ILCS 435/ - Land Trust Fiduciary Duties Act.
765 ILCS 505/ - Mining Act of 1874.
765 ILCS 510/ - Mineral Lease Release of Record Act.
765 ILCS 515/ - Severed Mineral Interest Act.
765 ILCS 520/ - Oil and Gas Rights Act.
765 ILCS 525/ - Oil and Gas Recovery Act.
765 ILCS 530/ - Drilling Operations Act.
765 ILCS 540/ - Coal Rights Act.
765 ILCS 605/ - Condominium Property Act.
765 ILCS 610/ - Condominium Advisory Council Act.
765 ILCS 615/ - Condominium and Common Interest Community Ombudsperson Act.
765 ILCS 705/ - Landlord and Tenant Act.
765 ILCS 710/ - Security Deposit Return Act.
765 ILCS 715/ - Security Deposit Interest Act.
765 ILCS 720/ - Retaliatory Eviction Act.
765 ILCS 725/ - Property Taxes of Noncitizen Landlords Act.
765 ILCS 730/ - Rent Concession Act.
765 ILCS 735/ - Rental Property Utility Service Act.
765 ILCS 740/ - Tenant Utility Payment Disclosure Act.
765 ILCS 742/ - Residential Tenants' Right to Repair Act.
765 ILCS 745/ - Mobile Home Landlord and Tenant Rights Act.
765 ILCS 750/ - Safe Homes Act.
765 ILCS 755/ - Immigrant Tenant Protection Act.
765 ILCS 805/ - Conveyance of Burial Places to County Act.
765 ILCS 810/ - Cemetery Company Land Not Used for Burial Act.
765 ILCS 815/ - Cemetery Association Land Not Used for Burial Act.
765 ILCS 820/ - Cemetery Land Ownership and Transfer Act.
765 ILCS 825/ - City Sale or Lease of Land for Cemeteries Act.
765 ILCS 830/ - Cemetery Removal Act.
765 ILCS 835/ - Cemetery Protection Act.
765 ILCS 910/ - Mortgage Escrow Account Act.
765 ILCS 915/ - Mortgage Tax Escrow Act.
765 ILCS 920/ - Mortgage Payment Statement Act.
765 ILCS 925/ - Notice of Prepayment of Federally Subsidized Mortgage Act.
765 ILCS 930/ - Mortgage Insurance Limitation and Notification Act.
765 ILCS 935/ - Mortgage Certificate of Release Act.
765 ILCS 940/ - Mortgage Rescue Fraud Act.
765 ILCS 945/ - Reverse Mortgage Act.
765 ILCS 1005/ - Joint Tenancy Act.
765 ILCS 1010/ - Electricity and Gas Joint Ownership Act.
765 ILCS 1015/ - Bailment Insurance Act.
765 ILCS 1020/ - Estrays and Lost Property Act.
765 ILCS 1026/ - Revised Uniform Unclaimed Property Act.
765 ILCS 1030/ - Law Enforcement Disposition of Property Act.
765 ILCS 1033/ - Museum Disposition of Property Act.
765 ILCS 1036/ - Trademark Registration and Protection Act.
765 ILCS 1040/ - Counterfeit Trademark Act.
765 ILCS 1045/ - Industrial and Linen Supplies Marking Law.
765 ILCS 1050/ - Registered Container Trade Mark Act.
765 ILCS 1053/ - Dies and Molds Ownership Transfer Act of 1997.
765 ILCS 1055/ - Plastics Dies and Molds Ownership Transfer Act.
765 ILCS 1060/ - Employee Patent Act.
765 ILCS 1065/ - Illinois Trade Secrets Act.
765 ILCS 1070/ - Unsealed Instrument Validation Act.
765 ILCS 1075/ - Right of Publicity Act.
765 ILCS 1080/ - Park District and Public Utility Liability Act.