Why can unit owners who owe assessments be on the condo board?
Section 22.1 of the Illinois Condominium Property Act: When HOAs owe past assessments?
Asa first-time buyer of a condominium unit, or owning any property at all really, the entire process can be overwhelming. You’re scrambling to pay for inspections, down payments, visiting multiple properties to see what it’s like during day and night hours, timing and measuring how far the property is to schools and public transportation, guesstimating moving expenses, and hoping for vacation day approvals for the move. You need a sufficient team to help you along the way. It’s why your real estate agent and attorney are a necessary part of the purchasing process. But once you get a handle on your own funds, the last thing you want to worry about is someone else’s financial state. You should.
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This is why carefully looking over Sec. 22.1 is important before you agree to purchase. This collection of documents will give you a better idea of the association you are agreeing to work with. The property management company and/or the board of directors on the condo association must provide documents such as the following:
a copy of the declaration, bylaws, Rules and Regulations, etc. (Bylaws should be in compliance with your state’s laws. Rules and Regulations can be updated each year, per a change in board of directors, if need be.)
a statement of any liens (i.e., unpaid assessments and/or other charges on the unit you want to purchase)
a statement of any capital expenditures (money spent by a business or organization for acquiring or maintaining the building or equipment)
a statement of any earmarked funds for upcoming projects
a statement of financial conditions of the association (i.e., bank statements)
a statement of any pending lawsuits or judgments in which the unit owner’s association is a party
proof of eligible insurance coverage for all unit owners
a statement regarding any improvements or alterations
mailing address for principal officers or agents to receive notifications regarding board business
Recommended Read: “If you read nothing else in your bylaws … Make sure you read 10 things from condominium bylaws before buying property”
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