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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 SB242 Enrolled -2- LRB9101314KSgc 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 andorfurnish 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 SB242 Enrolled -3- LRB9101314KSgc 1 assume, andorthe developer shall provide a surety bond or 2 substitute collateral for or insurance againstsuchliens 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 SB242 Enrolled -4- LRB9101314KSgc 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 SB242 Enrolled -5- LRB9101314KSgc 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 SB242 Enrolled -6- LRB9101314KSgc 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). SB242 Enrolled -7- LRB9101314KSgc 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 SB242 Enrolled -8- LRB9101314KSgc 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 SB242 Enrolled -9- LRB9101314KSgc 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 SB242 Enrolled -10- LRB9101314KSgc 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. SB242 Enrolled -11- LRB9101314KSgc 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 SB242 Enrolled -12- LRB9101314KSgc 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 SB242 Enrolled -13- LRB9101314KSgc 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 SB242 Enrolled -14- LRB9101314KSgc 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 SB242 Enrolled -15- LRB9101314KSgc 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 SB242 Enrolled -16- LRB9101314KSgc 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 SB242 Enrolled -17- LRB9101314KSgc 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 SB242 Enrolled -18- LRB9101314KSgc 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. SB242 Enrolled -19- LRB9101314KSgc 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 SB242 Enrolled -20- LRB9101314KSgc 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 SB242 Enrolled -21- LRB9101314KSgc 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 SB242 Enrolled -22- LRB9101314KSgc 1 the basis for such reserves, or, if no provision is made for 2 such reserves, a statement to that effect;and3 (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 SB242 Enrolled -23- LRB9101314KSgc 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.