HB4783 EngrossedLRB098 17140 HEP 52227 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Condominium Property Act is amended by
5changing Section 9.1 as follows:
 
6    (765 ILCS 605/9.1)  (from Ch. 30, par. 309.1)
7    Sec. 9.1. (a) Other liens; rights of board of managers
8attachment and satisfaction.
9    (a) Subsequent to the recording of the declaration, no
10liens of any nature shall be created or arise against any
11portion of the property except against an individual unit or
12units. No labor performed or materials furnished with the
13consent or at the request of a particular unit owner shall be
14the basis for the filing of a mechanics' lien claim against any
15other unit. If the performance of the labor or furnishing of
16the materials is expressly authorized by the board of managers,
17each unit owner shall be deemed to have expressly authorized it
18and consented thereto, and shall be liable for the payment of
19his unit's proportionate share of any due and payable
20indebtedness as set forth in this Section.
21    Each mortgage and other lien, including mechanics liens,
22securing a debt incurred in the development of the land
23submitted to the provisions of this Act for the sale of units

 

 

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1shall be subject to the provisions of this Act, subsequent to
2the conveyance of a unit to the purchaser.
3    In the event any lien exists against 2 or more units and
4the indebtedness secured by such lien is due and payable, the
5unit owner of any such unit so affected may remove such unit
6and the undivided interest in the common elements appertaining
7thereto from such lien by payment of the proportional amount of
8such indebtedness attributable to such unit. In the event such
9lien exists against the units or against the property, the
10amount of such proportional payment shall be computed on the
11basis of the percentages set forth in the declaration. Upon
12payment as herein provided, it is the duty of the encumbrancer
13to execute and deliver to the unit owner a release of such unit
14and the undivided interest in the common elements appertaining
15thereto from such lien, except that such proportional payment
16and release shall not prevent the encumbrancer from proceeding
17to enforce his rights against any unit or interest with respect
18to which such lien has not been so paid or released.
19    The owner of a unit shall not be liable for any claims,
20damages, or judgments, including but not limited to State or
21local government fees or fines, entered as a result of any
22action or inaction of the board of managers of the association
23other than for mechanics' liens as set forth in this Section.
24Unit owners other than the developer, members of the board of
25managers other than the developer or developer
26representatives, and the association of unit owners shall not

 

 

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1be liable for any claims, damages, or judgments, including but
2not limited to State or local government fees or fines, entered
3as result of any action or inaction of the developer other than
4for mechanics' liens as set forth in this Section. Each unit
5owner's liability for any judgment entered against the board of
6managers or the association, if any, shall be limited to his
7proportionate share of the indebtedness as set forth in this
8Section, whether collection is sought through assessment or
9otherwise. A unit owner shall be liable for any claim, damage
10or judgment entered as a result of the use or operation of his
11unit, or caused by his own conduct. Before conveying a unit, a
12developer shall record and furnish purchaser releases of all
13liens affecting that unit and its common element interest which
14the purchaser does not expressly agree to take subject to or
15assume, and the developer shall provide a surety bond or
16substitute collateral for or insurance against liens for which
17a release is not provided. After conveyance of such unit, no
18mechanics lien shall be created against such unit or its common
19element interest by reason of any subsequent contract by the
20developer to improve or make additions to the property.
21    Each mortgagee or other lienholder of the unit of a common
22interest community or of a unit subject to the Condominium
23Property Act shall provide an address to the unit owners'
24association at the time the lien or mortgage is recorded at
25which address such unit owners' association shall send notice
26to such mortgagee or lienholder of any eminent domain

 

 

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1proceeding to which the association thereafter becomes a party.
2If the mortgagee or lienholder has not provided an address for
3notice purposes to the association, then such notice shall be
4sent to all mortgagees or lienholders which are named insureds
5on the master policy of insurance which exists or may exist on
6the common interest community or unit subject to the
7Condominium Property Act.
8    (b) Board of Managers' standing and capacity. The board of
9managers shall have standing and capacity to act in a
10representative capacity in relation to matters involving the
11common elements or more than one unit, on behalf of the unit
12owners, as their interests may appear.
13    (c) Any provision in a condominium instrument is void as
14against public policy and ineffective if it limits or restricts
15the rights of the board of managers under subsection (b) of
16this Section by:
17        (1) requiring the prior consent of the unit owners in
18    order for the board of managers to take any action
19    authorized or permitted under subsection (b) of this
20    Section, including the institution of any action in court
21    or a demand for a trial by jury; or
22        (2) notwithstanding Section 32 of this Act, requiring
23    the board of managers to arbitrate or mediate a dispute
24    with any one or more of all of the declarants under the
25    condominium instruments or the developer or any person not
26    then a unit owner prior to the institution of any action by

 

 

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1    the board of managers or a demand for a trial by jury under
2    subsection (b) of this Section.
3    A provision in a declaration which would otherwise be void
4and ineffective under this Section may be enforced if it is
5approved by a vote of not less than 75% of the unit owners at
6any time after the election of the first unit owner board of
7managers.
8(Source: P.A. 91-616, eff. 8-19-99.)