Chicago Condominium Laws

Chicago and Cook County condominium laws are some of the most sophisticated and stiff in Illinois.

Whether purchasing a condo or for condo association legal issues it is important to talk with a knowledgeable Real Estate Attorney to help you navigate the complexities of Chicago condo law issues.

Why You Need an Illinois Real Estate Attorney?

The sale of a home, whether you’re the buyer or seller, is an incredibly complicated process. When you go through a closing for a home, you’ll immediately notice the extensive amount of paperwork that needs to be filled out and finalized.

If you were to attempt this on your own, you may easily make a mistake that is going to be a problem later on. These problems could affect your tax return at the end of the year, how much tax you’re paying or generally the sale of the home that makes it difficult to receive the paperwork that you need.

An experienced Illinois real estate attorney will review and inspect every important document for any mistakes made regarding the documents such as:

  • Your broker’s listing agreement
  • The specific terms of the sales contract
  • Income and property tax consequences
  • Subdivision covenants, conditions and restrictions
  • Liens and other defects of title
  • Insurance requirements
  • Mortgage terms and lender’s requirements
  • Federal and local statutes regarding disclosures required for real estate and lending transactions.

They will also answer any questions you may have concerning the sale or purchase of a home.

Many people are novices when it comes to real estate and they may easily make mistakes if they don’t really know what they’re doing when buying or selling. An Illinois Real Estate attorney can answer your questions and assist you through the process of home buying or selling so that it can get done quickly and effortlessly.

Illinois Real Estate Laws Effective 2015

On January 1, more than 200 new laws took effect in Illinois.  Here is a brief synopsis of these laws related to Real Estate.

Real Estate/Property

PA 98-1106 (SB 2952) “Last known address” now includes e-mail
E-mail addresses are now included in the definition of the term “last known address” in the Self-Service Storage Facility Act. This law provides that notice under the Act shall be delivered by verified mail or by electronic mail to the last known address of the occupant. It provides that a notice sent by electronic mail is presumed delivered when the owner receives a receipt of delivery to the occupant’s last known address. It further provides that a sale shall be deemed to be held at the self-service storage facility where the personal property is stored if the sale is held on a publicly accessible online website.

PA 98-1109 (SB 3044) Amendments to the Real Estate License Act of 2000
This bill amended the Real Estate License Act of 2000 to add the definition of “Broker price opinion” and “Comparative market analysis” to the Act. It provides requirements and reasoning for broker price opinions and comparative market analyses. It provides what must be included in written/electronic broker price opinion/comparative market analysis and requires a criminal background check, including fingerprinting to Illinois State Police, for each new applicant for licensure by examination or restoration.

PA 98-0735 (HB 4784) E-mails for condo associations
Allows condo boards to deliver notices electronically to unit owners with their permission in order to facilitate more effective communication with their members.  Also allows a condo owner to designate an e-mail address, postal address, or both, for official purposes and for an association’s records

PA 98-0754 (SB 2597) Seller disclosure in residential sales
A technical change to include “windows” and “doors” in what a seller must include in known material defects when selling residential property.  Previously, the law specified “walls”; that language was intended to cover windows and doors as well.  This law makes clear that inclusion.

PA 98-0933 (HB 5709) Real estate valuation waiver
Since county engineers are already exempted from having a license for valuation on property under $10,000 this would allow municipal engineers to be equal to county engineers for the purposes of a valuation of property under $10,000.

PA 98-0966 (SB 3286) Access to gated communities for process servers
Requires employees of gated communities provide access to process servers showing legitimate credentials to serve process on a resident of that gated community.

PA 98-0996 (HB 4782) Condo Board Lease
The civil code is amended to allow a condo board of managers to take possession of a property under authorized judgment and within 8 months after the month of termination, may permit or extend a lease for additional terms not to exceed 13 months.

PA 98-1068 (HB 4783) Condo association preventing suing developers
Condo association bylaws are often written with clauses that prevent a property owner from suing a developer.  In many cases, there are defects to the condos and the owner must seek the approval of the association to seek legal action.  This law does not allow such clauses in association bylaws.

PA 98-0821 (SB 2656) Power of attorney during condominium transfer after death
During any transfer of a condominium residential unit after the death of the owner, any parking or amenity owned and used by the owner is to be included. The law revises the Illinois Residential Real Property Transfer on Death Instrument Act to restrict the agent from exercising certain decision making powers, however it does not restrict the agent from the ability to sell.

PA 98-0836 (SB 2985) Changes regulations for small estate affidavits
Amends the Probate Act of 1975 to requiring anyone executing a small estate affidavit to list and classify the debts of the decedent. Should a decedent’s estate be insufficient to cover the costs of the affidavit, then it shall be paid pro rata. Allows the executor of a small estate affidavit to examine and remove the contents of the safety deposit box of the decedent of the affidavit.

PA 98-1062 (HB 4123) Protections for mobile home owners
Mobile home owners used to run the risk of mobile park owners going out of business or filing for bankruptcy and not being told until the day they are required to leave.  The law requires more transparency about who the park owner is and notice requirements should the mobile home owner have to leave.

PA 98-1042 (HB 5322) Electronic voting for condo associations
Amends the Common Interest Community Association Act to allow condo associations with more than 10 units and up to $100,000 in assessments to allow voting, required notices, signatures, consent or approvals through electronic transmission. Associations must make reasonable accommodation, at its expense, for any person to conduct business with the association without the use of electronic or other means.

PA 98-0842 (SB 3057) Amends the Common Interest Community Association Act
Exempts certain provisions of the Act requiring a common interest community unit owner leasing a unit to deliver a copy of a lease to the association if the community instruments provide otherwise.

Source: http://www.thecaucusblog.com/2014/12/new-laws-effective-2015.html

The Real Estate purchase agreement

The Real Estate purchase agreement is the most important document in the transaction. Although standard printed forms are useful, it is recommended that you have a lawyer with Illinois Real Estate transaction knowledge explaining the form and making changes and additions to reflect the buyer’s and or the seller’s desires.

There are several issues that may need to be addressed in the purchase agreement; below are some common examples:

  • If the property has been modified or there has been an addition to the property, was it done lawfully, with permits?
  • If the buyer has plans to change the property, may what is planned for the property, what are the zoning restrictions, etc.?
  • What happens if a buyer has a home inspector inspect the property and discovers termites, asbestos, radon, or lead-based paint is found?
  • What if the property is found to contain hazardous waste?
  • Is the closing appropriately conditioned upon the buyer obtaining financing?
  • What are the legal consequences if the closing does not take place on time, and what happens to the down payment?

Most buyers finance a substantial portion of the purchase price for a home with a mortgage loan from a lending institution. The purchase agreement should contain a carefully worded provision that it is subject to the buyer’s obtaining a commitment for financing.

Mortgage loan commitments and mortgage loan documents are complex. Seek advise from an Illinois Real Estate Lawyer and let them review and explain the importance of these various documents.

Prepare for Meeting your Attorney to Discuss Estate Plan

SOME THINGS YOU NEED TO KNOW BEFORE YOU MEET WITH YOUR ESTATE PLANNING ATTORNEY…

it can help save you money.

You are ready to finally go ahead and get that Will done.  Everyone has been nagging you about it, but you never wanted to deal with it.  You never had enough money, you didn’t know who you wanted to leave it to, and you were afraid to talk about dying.  But, now you are ready to do it.  There are a few things you will want to do prior to meeting with your attorney.  These few steps will save you both time and money.

The first thing you need to do is to collect and organize all of your documents that:

1. Show where your money and property are located.

2. Show how much that property is worth and how much it costs.

3. Show who owns these assets and how they are owned.

These documents can and should include bank statements, insurance papers, employment benefit papers, deeds, business records, titles to property and tax records.  In addition, you will also want to bring any contracts or agreements you have entered into regarding your finances, i.e. divorce agreement or pre-nuptual agreement.  These papers assist your attorney in deciding what estate planning documents are necessary to provide you and your heirs the greatest opportunity to retain your money within the family, and not lose it to attorneys, taxes or the courts.

In addition, you should prepare a list of all your assets and debts.  While this may seem time-consuming now, it will need to be done at some time.  Either you can prepare it now, while you are alive and know where everything is… or you can let your heirs and attorneys prepare it later at a tremendous cost, with the risk that not everything will be found, thereby leaving your heirs without their proper inheritance.

Finally, prepare a list indicating who you want to receive your property after you die.  You should also begin to think about who you would want to manage your affairs when you die, and who you would want to care for your minor children.

Bank of America Halting Foreclosures

Bank of America halting foreclosure is 23 states including Illinois. http://www.huffingtonpost.com/2010/10/01/bank-of-america-foreclosures-halt-23-states_n_747669.html.  We are starting to see a trend.  This is now the third major lender to make this announcement in recent weeks.  GMAC and Chase have also halted foreclosure proceedings.

While this will assist homeowners who were facing foreclosure, by giving them the gift of time to stay in their homes, the interesting thing to watch will be the impact of these announcements on current short sale negotiations with lenders, as well as the impact on the real estate market itself. On the one hand, this may make short sales easier to negotiate as these banks have no fall back position to proceed with a foreclosure proceeding.  On the other hand, the longer these defaulted properties sit without going through the foreclosure process and going back on the market as a bank owned property, the longer it will be until we can truly hit rock bottom prices in the market and expect any meaningful turnaround in prices.  Stay tuned and see how this all plays out.