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91_SB0242enr
SB242 Enrolled LRB9101314KSgc
1 AN ACT to amend the Condominium Property Act by changing
2 Sections 9.1, 18.2, 18.5, and 22.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Condominium Property Act is amended by
6 changing Sections 9.1, 18.2, 18.5, and 22 as follows:
7 (765 ILCS 605/9.1) (from Ch. 30, par. 309.1)
8 Sec. 9.1. (a) Other liens; attachment and satisfaction.
9 Subsequent to the recording of the declaration, no liens of
10 any nature shall be created or arise against any portion of
11 the property except against an individual unit or units. No
12 labor performed or materials furnished with the consent or at
13 the request of a particular unit owner shall be the basis for
14 the filing of a mechanics' lien claim against any other unit.
15 If the performance of the labor or furnishing of the
16 materials is expressly authorized by the board of managers,
17 each unit owner shall be deemed to have expressly authorized
18 it and consented thereto, and shall be liable for the payment
19 of his unit's proportionate share of any due and payable
20 indebtedness as set forth in this Section.
21 Each mortgage and other lien, including mechanics liens,
22 securing a debt incurred in the development of the land
23 submitted to the provisions of this Act for the sale of units
24 shall be subject to the provisions of this Act, subsequent to
25 the conveyance of a unit to the purchaser.
26 In the event any lien exists against 2 or more units and
27 the indebtedness secured by such lien is due and payable, the
28 unit owner of any such unit so affected may remove such unit
29 and the undivided interest in the common elements
30 appertaining thereto from such lien by payment of the
31 proportional amount of such indebtedness attributable to such
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1 unit. In the event such lien exists against the units or
2 against the property, the amount of such proportional payment
3 shall be computed on the basis of the percentages set forth
4 in the declaration. Upon payment as herein provided, it is
5 the duty of the encumbrancer to execute and deliver to the
6 unit owner a release of such unit and the undivided interest
7 in the common elements appertaining thereto from such lien,
8 except that such proportional payment and release shall not
9 prevent the encumbrancer from proceeding to enforce his
10 rights against any unit or interest with respect to which
11 such lien has not been so paid or released.
12 The owner of a unit shall not be liable for any claims,
13 damages, or judgments, including but not limited to State or
14 local government fees or fines, entered as a result of any
15 action or inaction of the board of managers of the
16 association other than for mechanics' liens as set forth in
17 this Section. Unit owners other than the developer, members
18 of the board of managers other than the developer or
19 developer representatives, and the association of unit owners
20 shall not be liable for any claims, damages, or judgments,
21 including but not limited to State or local government fees
22 or fines, entered as result of any action or inaction of the
23 developer other than for mechanics' liens as set forth in
24 this Section. Each unit owner's liability for any judgment
25 entered against the board of managers or the association, if
26 any, shall be limited to his proportionate share of the
27 indebtedness as set forth in this Section, whether collection
28 is sought through assessment or otherwise. A unit owner shall
29 be liable for any claim, damage or judgment entered as a
30 result of the use or operation of his unit, or caused by his
31 own conduct. Before conveying a unit, a developer shall
32 record and or furnish purchaser releases of all liens
33 affecting that unit and its common element interest which the
34 purchaser does not expressly agree to take subject to or
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1 assume, and or the developer shall provide a surety bond or
2 substitute collateral for or insurance against such liens for
3 which a release is not provided. After conveyance of such
4 unit, no mechanics lien shall be created against such unit or
5 its common element interest by reason of any subsequent
6 contract by the developer to improve or make additions to the
7 property.
8 Each mortgagee or other lienholder of the unit of a
9 common interest community or of a unit subject to the
10 Condominium Property Act shall provide an address to the unit
11 owners' association at the time the lien or mortgage is
12 recorded at which address such unit owners' association shall
13 send notice to such mortgagee or lienholder of any eminent
14 domain proceeding to which the association thereafter becomes
15 a party. If the mortgagee or lienholder has not provided an
16 address for notice purposes to the association, then such
17 notice shall be sent to all mortgagees or lienholders which
18 are named insureds on the master policy of insurance which
19 exists or may exist on the common interest community or unit
20 subject to the Condominium Property Act.
21 (b) Board of Managers' standing and capacity.
22 The board of managers shall have standing and capacity to
23 act in a representative capacity in relation to matters
24 involving the common elements or more than one unit, on
25 behalf of the unit owners, as their interests may appear.
26 (Source: P.A. 86-826.)
27 (765 ILCS 605/18.2) (from Ch. 30, par. 318.2)
28 Sec. 18.2. Administration of property prior to election
29 of initial board of managers.
30 (a) Until election of the initial board of managers that
31 is comprised of a majority of unit owners other than the
32 developer (first unit owner board of managers), the same
33 rights, titles, powers, privileges, trusts, duties and
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1 obligations vested in or imposed upon the board of managers
2 by this Act and in the declaration and bylaws shall be held
3 and performed by the developer.
4 (b) (i) The election of the first unit owner board of
5 managers shall be held not later than 60 days after the
6 conveyance by the developer of 75% of the units, or 3
7 years after the recording of the declaration, whichever
8 is earlier. The developer shall give at least 21 days
9 notice of such meeting to elect the first unit owner
10 board of managers and shall provide to any unit owner
11 within 3 working days of the request, the names,
12 addresses, and weighted vote of each unit owner entitled
13 to vote at such meeting. Any unit owner shall be
14 provided with the same information within 10 days of
15 receipt of the request, with respect to each subsequent
16 meeting to elect members of the Board of Managers.
17 (ii) In the event the developer does not call a
18 meeting for the purpose of election of the board of
19 managers within the time provided in this subsection (b),
20 unit owners holding 20% of the interest in the
21 association may call a meeting by filing a petition for
22 such meeting with the developer, after which said unit
23 owners shall have authority to send notice of said
24 meeting to the unit owners and to hold such meeting.
25 (c) If the first unit board of managers is not elected
26 at the time so established, the developer shall continue in
27 office for a period of 30 days whereupon written notice of
28 his resignation shall be sent to all of the unit owners
29 entitled to vote at such election.
30 (d) Within 60 days following the election of the first
31 unit owner board of managers, the developer shall deliver to
32 the board of managers:
33 (1) All original documents as recorded or filed
34 pertaining to the property, its administration, and the
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1 association, such as the declaration, by-laws, articles
2 of incorporation, other condominium instruments, annual
3 reports, minutes and rules and regulations, contracts,
4 leases, or other agreements entered into by the
5 Association. If any original documents are unavailable,
6 a copy may be provided if certified by affidavit of the
7 developer, or an officer or agent of the developer, as
8 being a complete copy of the actual document recorded as
9 filed.
10 (2) A detailed accounting by the developer, setting
11 forth the source and nature of receipts and expenditures
12 in connection with the management, maintenance and
13 operation of the property and copies of all insurance
14 policies and a list of any loans or advances to the
15 association which are outstanding.
16 (3) Association funds, which shall have been at all
17 times segregated from any other moneys of the developer.
18 (4) A schedule of all real or personal property,
19 equipment and fixtures belonging to the association,
20 including documents transferring the property,
21 warranties, if any, for all real and personal property
22 and equipment, deeds, title insurance policies, and all
23 tax bills.
24 (5) A list of all litigation, administrative action
25 and arbitrations involving the association, any notices
26 of governmental bodies involving actions taken or which
27 may be taken concerning the association, engineering and
28 architectural drawings and specifications as approved by
29 any governmental authority, all other documents filed
30 with any other governmental authority, all governmental
31 certificates, correspondence involving enforcement of any
32 association requirements, copies of any documents
33 relating to disputes involving unit owners, originals of
34 all documents relating to everything listed in this
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1 subparagraph.
2 (e) Upon election of the first unit owner board of
3 managers, any contract, lease, or other agreement made prior
4 to the date of election of the first unit owner board by or
5 on behalf of unit owners, individually or collectively, the
6 unit owners' association, the board of managers, or the
7 developer or its affiliates which extends for a period of
8 more than 2 years from the date of the election, shall be
9 subject to cancellation by a majority of the votes of the
10 unit owners other than the developer cast at a special
11 meeting of members called for that purpose during the 180 day
12 period beginning on the date of the election of the first
13 unit owner board. At least 60 days prior to the expiration
14 of the 180 day cancellation period, the board of managers
15 shall send notice to every unit owner, notifying them of this
16 provision, what contracts, leases and other agreements are
17 affected, and the procedure for calling a meeting of the unit
18 owners for the purpose of voting on termination of such
19 contracts, leases or other agreements. During the 180 day
20 cancellation period the other party to the contract, lease,
21 or other agreement shall also have the right of cancellation.
22 The cancellation shall be effective 30 days after mailing
23 notice by certified mail, return receipt requested, to the
24 last known address of the other parties to the contract,
25 lease, or other agreement.
26 (f) The statute of limitations for any actions in law or
27 equity which the condominium association may bring shall not
28 begin to run until the unit owners have elected a majority of
29 the members of the board of managers.
30 (g) If the developer fails to fully comply with
31 subsection (d) within the 60 days provided and fails to fully
32 comply within 10 days of written demand mailed by registered
33 or certified mail to his or her last known address, the board
34 may bring an action to compel compliance with subsection (d).
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1 If the court finds that any of the required deliveries were
2 not made within the required period, the board shall be
3 entitled to recover its reasonable attorneys' fees and costs
4 incurred from and after the date of expiration of the 10 day
5 demand.
6 (Source: P.A. 89-41, eff. 6-23-95; 89-626, eff. 8-9-96.)
7 (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
8 Sec. 18.5. Master Associations.
9 (a) If the declaration, other condominium instrument, or
10 other duly recorded covenants provide that any of the powers
11 of the unit owners associations are to be exercised by or may
12 be delegated to a nonprofit corporation or unincorporated
13 association that exercises those or other powers on behalf of
14 one or more condominiums, or for the benefit of the unit
15 owners of one or more condominiums, such corporation or
16 association shall be a master association.
17 (b) There shall be included in the declaration, other
18 condominium instruments, or other duly recorded covenants
19 establishing the powers and duties of the master association
20 the provisions set forth in subsections (c) through (h).
21 In interpreting subsections (c) through (h), the courts
22 should interpret these provisions so that they are
23 interpreted consistently with the similar parallel provisions
24 found in other parts of this Act.
25 (c) Meetings and finances.
26 (1) Each unit owner of a condominium subject to the
27 authority of the board of the master association shall
28 receive, at least 30 days prior to the adoption thereof
29 by the board of the master association, a copy of the
30 proposed annual budget.
31 (2) The board of the master association shall
32 annually supply to all unit owners of condominiums
33 subject to the authority of the board of the master
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1 association an itemized accounting of the common expenses
2 for the preceding year actually incurred or paid,
3 together with a tabulation of the amounts collected
4 pursuant to the budget or assessment, and showing the net
5 excess or deficit of income over expenditures plus
6 reserves.
7 (3) Each unit owner of a condominium subject to the
8 authority of the board of the master association shall
9 receive written notice mailed or delivered no less than
10 10 and no more than 30 days prior to any meeting of the
11 board of the master association concerning the adoption
12 of the proposed annual budget or any increase in the
13 budget, or establishment of an assessment.
14 (4) Meetings of the board of the master association
15 shall be open to any unit owner in a condominium subject
16 to the authority of the board of the master association,
17 except for the portion of any meeting held:
18 (A) to discuss litigation when an action
19 against or on behalf of the particular master
20 association has been filed and is pending in a court
21 or administrative tribunal, or when the board of the
22 master association finds that such an action is
23 probable or imminent,
24 (B) to consider information regarding
25 appointment, employment or dismissal of an employee,
26 or
27 (C) to discuss violations of rules and
28 regulations of the master association or unpaid
29 common expenses owed to the master association.
30 Any vote on these matters shall be taken at a meeting or
31 portion thereof open to any unit owner of a condominium
32 subject to the authority of the master association.
33 Any unit owner may record the proceedings at
34 meetings required to be open by this Act by tape, film or
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1 other means; the board may prescribe reasonable rules and
2 regulations to govern the right to make such recordings.
3 Notice of meetings shall be mailed or delivered at least
4 48 hours prior thereto, unless a written waiver of such
5 notice is signed by the persons entitled to notice before
6 the meeting is convened. Copies of notices of meetings
7 of the board of the master association shall be posted in
8 entranceways, elevators, or other conspicuous places in
9 the condominium at least 48 hours prior to the meeting of
10 the board of the master association. Where there is no
11 common entranceway for 7 or more units, the board of the
12 master association may designate one or more locations in
13 the proximity of these units where the notices of
14 meetings shall be posted.
15 (5) If the declaration provides for election by
16 unit owners of members of the board of directors in the
17 event of a resale of a unit in the master association,
18 the purchaser of a unit from a seller other than the
19 developer pursuant to an installment contract for
20 purchase shall, during such times as he or she resides in
21 the unit, be counted toward a quorum for purposes of
22 election of members of the board of directors at any
23 meeting of the unit owners called for purposes of
24 electing members of the board, and shall have the right
25 to vote for the election of members of the board of
26 directors and to be elected to and serve on the board of
27 directors unless the seller expressly retains in writing
28 any or all of those rights. In no event may the seller
29 and purchaser both be counted toward a quorum, be
30 permitted to vote for a particular office, or be elected
31 and serve on the board. Satisfactory evidence of the
32 installment contract shall be made available to the
33 association or its agents. For purposes of this
34 subsection, "installment contract" shall have the same
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1 meaning as set forth in subsection (e) of Section 1 of
2 the Dwelling Unit Installment Contract Act.
3 (6) The board of the master association shall have
4 the authority to establish and maintain a system of
5 master metering of public utility services and to collect
6 payments in connection therewith, subject to the
7 requirements of the Tenant Utility Payment Disclosure
8 Act.
9 (7) The board of the master association or a common
10 interest community association shall have the power,
11 after notice and an opportunity to be heard, to levy and
12 collect reasonable fines from members for violations of
13 the declaration, bylaws, and rules and regulations of the
14 master association or the common interest community
15 association. Nothing contained in this subdivision (7)
16 shall give rise to a statutory lien for unpaid fines.
17 (d) Records.
18 (1) The board of the master association shall
19 maintain the following records of the association and
20 make them available for examination and copying at
21 convenient hours of weekdays by any unit owners in a
22 condominium subject to the authority of the board or
23 their mortgagees and their duly authorized agents or
24 attorneys:
25 (i) Copies of the recorded declaration, other
26 condominium instruments, other duly recorded
27 covenants and bylaws and any amendments, articles of
28 incorporation of the master association, annual
29 reports and any rules and regulations adopted by the
30 master association or its board shall be available.
31 Prior to the organization of the master association,
32 the developer shall maintain and make available the
33 records set forth in this subdivision (d)(1) for
34 examination and copying.
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1 (ii) Detailed and accurate records in
2 chronological order of the receipts and expenditures
3 affecting the common areas, specifying and itemizing
4 the maintenance and repair expenses of the common
5 areas and any other expenses incurred, and copies of
6 all contracts, leases, or other agreements entered
7 into by the master association, shall be maintained.
8 (iii) The minutes of all meetings of the
9 master association and the board of the master
10 association shall be maintained for not less than 7
11 years.
12 (iv) Ballots and proxies related thereto, if
13 any, for any election held for the board of the
14 master association and for any other matters voted
15 on by the unit owners shall be maintained for not
16 less than one year.
17 (v) Such other records of the master
18 association as are available for inspection by
19 members of a not-for-profit corporation pursuant to
20 Section 107.75 of the General Not For Profit
21 Corporation Act of 1986 shall be maintained.
22 (vi) With respect to units owned by a land
23 trust, if a trustee designates in writing a person
24 to cast votes on behalf of the unit owner, the
25 designation shall remain in effect until a
26 subsequent document is filed with the association.
27 (2) Where a request for records under this
28 subsection is made in writing to the board of managers or
29 its agent, failure to provide the requested record or to
30 respond within 30 days shall be deemed a denial by the
31 board of directors.
32 (3) A reasonable fee may be charged by the master
33 association or its board for the cost of copying.
34 (4) If the board of directors fails to provide
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1 records properly requested under subdivision (d)(1)
2 within the time period provided in subdivision (d)(2),
3 the unit owner may seek appropriate relief, including an
4 award of attorney's fees and costs.
5 (e) The board of directors shall have standing and
6 capacity to act in a representative capacity in relation to
7 matters involving the common areas of the master association
8 or more than one unit, on behalf of the unit owners as their
9 interests may appear.
10 (f) Administration of property prior to election of the
11 initial board of directors.
12 (1) Until the election, by the unit owners or the
13 boards of managers of the underlying condominium
14 associations, of the initial board of directors of a
15 master association whose declaration is recorded on or
16 after August 10, 1990, the same rights, titles, powers,
17 privileges, trusts, duties and obligations that are
18 vested in or imposed upon the board of directors by this
19 Act or in the declaration or other duly recorded covenant
20 shall be held and performed by the developer.
21 (2) The election of the initial board of directors
22 of a master association whose declaration is recorded on
23 or after August 10, 1990, by the unit owners or the
24 boards of managers of the underlying condominium
25 associations, shall be held not later than 60 days after
26 the conveyance by the developer of 75% of the units, or 3
27 years after the recording of the declaration, whichever
28 is earlier. The developer shall give at least 21 days
29 notice of the meeting to elect the initial board of
30 directors and shall upon request provide to any unit
31 owner, within 3 working days of the request, the names,
32 addresses, and weighted vote of each unit owner entitled
33 to vote at the meeting. Any unit owner shall upon
34 receipt of the request be provided with the same
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1 information, within 10 days of the request, with respect
2 to each subsequent meeting to elect members of the board
3 of directors.
4 (3) If the initial board of directors of a master
5 association whose declaration is recorded on or after
6 August 10, 1990 is not elected by the unit owners or the
7 members of the underlying condominium association board
8 of managers at the time established in subdivision
9 (f)(2), the developer shall continue in office for a
10 period of 30 days, whereupon written notice of his
11 resignation shall be sent to all of the unit owners or
12 members of the underlying condominium board of managers
13 entitled to vote at an election for members of the board
14 of directors.
15 (4) Within 60 days following the election of a
16 majority of the board of directors, other than the
17 developer, by unit owners, the developer shall deliver to
18 the board of directors:
19 (i) All original documents as recorded or
20 filed pertaining to the property, its
21 administration, and the association, such as the
22 declaration, articles of incorporation, other
23 instruments, annual reports, minutes, rules and
24 regulations, and contracts, leases, or other
25 agreements entered into by the association. If any
26 original documents are unavailable, a copy may be
27 provided if certified by affidavit of the developer,
28 or an officer or agent of the developer, as being a
29 complete copy of the actual document recorded or
30 filed.
31 (ii) A detailed accounting by the developer,
32 setting forth the source and nature of receipts and
33 expenditures in connection with the management,
34 maintenance and operation of the property, copies of
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1 all insurance policies, and a list of any loans or
2 advances to the association which are outstanding.
3 (iii) Association funds, which shall have been
4 at all times segregated from any other moneys of the
5 developer.
6 (iv) A schedule of all real or personal
7 property, equipment and fixtures belonging to the
8 association, including documents transferring the
9 property, warranties, if any, for all real and
10 personal property and equipment, deeds, title
11 insurance policies, and all tax bills.
12 (v) A list of all litigation, administrative
13 action and arbitrations involving the association,
14 any notices of governmental bodies involving actions
15 taken or which may be taken concerning the
16 association, engineering and architectural drawings
17 and specifications as approved by any governmental
18 authority, all other documents filed with any other
19 governmental authority, all governmental
20 certificates, correspondence involving enforcement
21 of any association requirements, copies of any
22 documents relating to disputes involving unit
23 owners, and originals of all documents relating to
24 everything listed in this subparagraph.
25 (vi) If the developer fails to fully comply
26 with this paragraph (4) within the 60 days provided
27 and fails to fully comply within 10 days of written
28 demand mailed by registered or certified mail to his
29 or her last known address, the board may bring an
30 action to compel compliance with this paragraph (4).
31 If the court finds that any of the required
32 deliveries were not made within the required period,
33 the board shall be entitled to recover its
34 reasonable attorneys' fees and costs incurred from
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1 and after the date of expiration of the 10 day
2 demand.
3 (5) With respect to any master association whose
4 declaration is recorded on or after August 10, 1990, any
5 contract, lease, or other agreement made prior to the
6 election of a majority of the board of directors other
7 than the developer by or on behalf of unit owners or
8 underlying condominium associations, the association or
9 the board of directors, which extends for a period of
10 more than 2 years from the recording of the declaration,
11 shall be subject to cancellation by more than 1/2 of the
12 votes of the unit owners, other than the developer, cast
13 at a special meeting of members called for that purpose
14 during a period of 90 days prior to the expiration of the
15 2 year period if the board of managers is elected by the
16 unit owners, otherwise by more than 1/2 of the underlying
17 condominium board of managers. At least 60 days prior to
18 the expiration of the 2 year period, the board of
19 directors, or, if the board is still under developer
20 control, then the board of managers or the developer
21 shall send notice to every unit owner or underlying
22 condominium board of managers, notifying them of this
23 provision, of what contracts, leases and other agreements
24 are affected, and of the procedure for calling a meeting
25 of the unit owners or for action by the underlying
26 condominium board of managers for the purpose of acting
27 to terminate such contracts, leases or other agreements.
28 During the 90 day period the other party to the contract,
29 lease, or other agreement shall also have the right of
30 cancellation.
31 (6) The statute of limitations for any actions in
32 law or equity which the master association may bring
33 shall not begin to run until the unit owners or
34 underlying condominium board of managers have elected a
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1 majority of the members of the board of directors.
2 (g) In the event of any resale of a unit in a master
3 association by a unit owner other than the developer, the
4 owner shall obtain from the board of directors and shall make
5 available for inspection to the prospective purchaser, upon
6 demand, the following:
7 (1) A copy of the declaration, other instruments
8 and any rules and regulations.
9 (2) A statement of any liens, including a statement
10 of the account of the unit setting forth the amounts of
11 unpaid assessments and other charges due and owing.
12 (3) A statement of any capital expenditures
13 anticipated by the association within the current or
14 succeeding 2 fiscal years.
15 (4) A statement of the status and amount of any
16 reserve for replacement fund and any portion of such fund
17 earmarked for any specified project by the board of
18 directors.
19 (5) A copy of the statement of financial condition
20 of the association for the last fiscal year for which
21 such a statement is available.
22 (6) A statement of the status of any pending suits
23 or judgments in which the association is a party.
24 (7) A statement setting forth what insurance
25 coverage is provided for all unit owners by the
26 association.
27 (8) A statement that any improvements or
28 alterations made to the unit, or any part of the common
29 areas assigned thereto, by the prior unit owner are in
30 good faith believed to be in compliance with the
31 declaration of the master association.
32 The principal officer of the unit owner's association or
33 such other officer as is specifically designated shall
34 furnish the above information when requested to do so in
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1 writing, within 30 days of receiving the request.
2 A reasonable fee covering the direct out-of-pocket cost
3 of copying and providing such information may be charged by
4 the association or its board of directors to the unit seller
5 for providing the information.
6 (h) Errors and omissions.
7 (1) If there is an omission or error in the
8 declaration or other instrument of the master
9 association, the master association may correct the error
10 or omission by an amendment to the declaration or other
11 instrument, as may be required to conform it to this Act,
12 to any other applicable statute, or to the declaration.
13 The amendment shall be adopted by vote of two-thirds of
14 the members of the board of directors or by a majority
15 vote of the unit owners at a meeting called for that
16 purpose, unless the Act or the declaration of the master
17 association specifically provides for greater percentages
18 or different procedures.
19 (2) If, through a scrivener's error, a unit has not
20 been designated as owning an appropriate undivided share
21 of the common areas or does not bear an appropriate share
22 of the common expenses, or if all of the common expenses
23 or all of the common elements in the condominium have not
24 been distributed in the declaration, so that the sum
25 total of the shares of common areas which have been
26 distributed or the sum total of the shares of the common
27 expenses fail to equal 100%, or if it appears that more
28 than 100% of the common elements or common expenses have
29 been distributed, the error may be corrected by operation
30 of law by filing an amendment to the declaration,
31 approved by vote of two-thirds of the members of the
32 board of directors or a majority vote of the unit owners
33 at a meeting called for that purpose, which
34 proportionately adjusts all percentage interests so that
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1 the total is equal to 100%, unless the declaration
2 specifically provides for a different procedure or
3 different percentage vote by the owners of the units and
4 the owners of mortgages thereon affected by modification
5 being made in the undivided interest in the common areas,
6 the number of votes in the unit owners association or the
7 liability for common expenses appertaining to the unit.
8 (3) If an omission or error or a scrivener's error
9 in the declaration or other instrument is corrected by
10 vote of two-thirds of the members of the board of
11 directors pursuant to the authority established in
12 subdivisions (h)(1) or (h)(2) of this Section, the board,
13 upon written petition by unit owners with 20% of the
14 votes of the association or resolutions adopted by the
15 board of managers or board of directors of the
16 condominium and common interest community associations
17 which select 20% of the members of the board of directors
18 of the master association, whichever is applicable,
19 received within 30 days of the board action, shall call a
20 meeting of the unit owners or the boards of the
21 condominium and common interest community associations
22 which select members of the board of directors of the
23 master association within 30 days of the filing of the
24 petition or receipt of the condominium and common
25 interest community association resolution to consider the
26 board action. Unless a majority of the votes of the unit
27 owners of the association are cast at the meeting to
28 reject the action, or board of managers or board of
29 directors of condominium and common interest community
30 associations which select over 50% of the members of the
31 board of the master association adopt resolutions prior
32 to the meeting rejecting the action of the board of
33 directors of the master association, it is ratified
34 whether or not a quorum is present.
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1 (4) The procedures for amendments set forth in this
2 subsection (h) cannot be used if such an amendment would
3 materially or adversely affect property rights of the
4 unit owners unless the affected unit owners consent in
5 writing. This Section does not restrict the powers of
6 the association to otherwise amend the declaration,
7 bylaws, or other condominium instruments, but authorizes
8 a simple process of amendment requiring a lesser vote for
9 the purpose of correcting defects, errors, or omissions
10 when the property rights of the unit owners are not
11 materially or adversely affected.
12 (5) If there is an omission or error in the
13 declaration or other instruments that may not be
14 corrected by an amendment procedure set forth in
15 subdivision (h)(1) or (h)(2) of this Section, then the
16 circuit court in the county in which the master
17 association is located shall have jurisdiction to hear a
18 petition of one or more of the unit owners thereon or of
19 the association, to correct the error or omission, and
20 the action may be a class action. The court may require
21 that one or more methods of correcting the error or
22 omission be submitted to the unit owners to determine the
23 most acceptable correction. All unit owners in the
24 association must be joined as parties to the action.
25 Service of process on owners may be by publication, but
26 the plaintiff shall furnish all unit owners not
27 personally served with process with copies of the
28 petition and final judgment of the court by certified
29 mail, return receipt requested, at their last known
30 address.
31 (6) Nothing contained in this Section shall be
32 construed to invalidate any provision of a declaration
33 authorizing the developer to amend an instrument prior to
34 the latest date on which the initial membership meeting
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1 of the unit owners must be held, whether or not it has
2 actually been held, to bring the instrument into
3 compliance with the legal requirements of the Federal
4 National Mortgage Association, the Federal Home Loan
5 Mortgage Corporation, the Federal Housing Administration,
6 the United States Veterans Administration or their
7 respective successors and assigns.
8 (i) The provisions of subsections (c) through (h) are
9 applicable to all declarations, other condominium
10 instruments, and other duly recorded covenants establishing
11 the powers and duties of the master association recorded
12 under this Act. Any portion of a declaration, other
13 condominium instrument, or other duly recorded covenant
14 establishing the powers and duties of a master association
15 which contains provisions contrary to the provisions of
16 subsection (c) through (h) shall be void as against public
17 policy and ineffective. Any declaration, other condominium
18 instrument, or other duly recorded covenant establishing the
19 powers and duties of the master association which fails to
20 contain the provisions required by subsections (c) through
21 (h) shall be deemed to incorporate such provisions by
22 operation of law.
23 (j) The provisions of subsections (c) through (h) are
24 applicable to all common interest community associations and
25 their unit owners for common interest community associations
26 which are subject to the provisions of Section 9-102(a)(8) of
27 the Code of Civil Procedure. For purposes of this
28 subsection, the terms "common interest community" and "unit
29 owners" shall have the same meaning as set forth in Section
30 9-102(c) of the Code of Civil Procedure.
31 (Source: P.A. 89-41, eff. 6-23-95; 90-229, eff. 7-25-97.)
32 (765 ILCS 605/22) (from Ch. 30, par. 322)
33 Sec. 22. Full disclosure before sale. In relation to the
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1 initial sale or offering for sale of any condominium unit,
2 the seller must make full disclosure of, and provide copies
3 to the prospective buyer of, the following information
4 relative to the condominium project:
5 (a) the Declaration;
6 (b) the Bylaws of the association;
7 (c) a projected operating budget for the condominium
8 unit to be sold to the prospective buyer, including full
9 details concerning the estimated monthly payments for the
10 condominium unit, estimated monthly charges for maintenance
11 or management of the condominium property, and monthly
12 charges for the use of recreational facilities; and
13 (d) a floor plan of the apartment to be purchased by the
14 prospective buyer and the street address of the unit, if any,
15 and if the unit has no unique street address, the street
16 address of the project.
17 (e) in addition, any developer of a conversion
18 condominium shall include the following information:
19 (1) A specific statement of the amount of any initial or
20 special condominium fee due from the purchaser on or before
21 settlement of the purchase contract and the basis of such
22 fee;
23 (2) Information, if available, on the actual
24 expenditures made on all repairs, maintenance, operation, or
25 upkeep of the subject building or buildings within the last 2
26 years, set forth tabularly with the proposed budget of the
27 condominium and cumulatively, broken down on a per unit basis
28 in proportion to the relative voting strengths allocated to
29 the units by the bylaws. If such building or buildings have
30 not been occupied for a period of 3 years then the
31 information shall be set forth for the last 2 year period
32 such building or buildings have been occupied;
33 (3) A description of any provisions made in the budget
34 for reserves for capital expenditures and an explanation of
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1 the basis for such reserves, or, if no provision is made for
2 such reserves, a statement to that effect; and
3 (4) For developments of more than 6 units for which the
4 notice of intent to convert is issued after the effective
5 date of this amendatory Act of 1979, an engineer's report
6 furnished by the developer as to the present condition of all
7 structural components and major utility installations in the
8 condominium, which statement shall include the approximate
9 dates of construction, installation, major repairs and the
10 expected useful life of such items, together with the
11 estimated cost (in current dollars) of replacing such items;
12 and
13 (5) Any release, warranty, certificate of insurance, or
14 surety required by Section 9.1.
15 All of the information required by this Section which is
16 available at the time shall be furnished to the prospective
17 buyer before execution of the contract for sale. Thereafter,
18 no changes or amendments may be made in any of the items
19 furnished to the prospective buyer which would materially
20 affect the rights of the buyer or the value of the unit
21 without obtaining the approval of at least 75% of the buyers
22 then owning interest in the condominium. If all of the
23 information is not available at the time of execution of the
24 contract for sale, then the contract shall be voidable at
25 option of the buyer at any time up until 5 days after the
26 last item of required information is furnished to the
27 prospective buyer, or until the closing of the sale,
28 whichever is earlier. Failure on the part of the seller to
29 make full disclosure as required by this Section shall
30 entitle the buyer to rescind the contract for sale at any
31 time before the closing of the contract and to receive a
32 refund of all deposit moneys paid with interest thereon at
33 the rate then in effect for interest on judgments.
34 A sale is not an initial sale for the purposes of this
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1 Section if there is not a bona fide transfer of the ownership
2 and possession of the condominium unit for the purpose of
3 occupancy of such unit as the result of the sale or if the
4 sale was entered into for the purpose of avoiding the
5 requirements of this Section. The buyer in the first bona
6 fide sale of any condominium unit has the rights granted to
7 buyers under this Section. If the buyer in any sale of a
8 condominium unit asserts that such sale is the first bona
9 fide sale of that unit, the seller has the burden of proving
10 that his interest was acquired through a bona fide sale.
11 (Source: P.A. 81-897.)
12 Section 99. Effective date. This Act takes effect upon
13 becoming law.
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