[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ Senate Amendment 001 ] | [ Conference Committee Report 001 ] |
91_SB0242ham001
LRB9101314SMdvam01
1 AMENDMENT TO SENATE BILL 242
2 AMENDMENT NO. . Amend Senate Bill 242 on page 1,
3 lines 2 and 6, by replacing "18.2 and 18.5" each time it
4 appears with "9.1, 18.2, 18.5, and 22"; and
5 on page 1, immediately below line 6, by inserting the
6 following:
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
-2- LRB9101314SMdvam01
1 submitted to the provisions of this Act for the sale of units
2 shall be subject to the provisions of this Act, subsequent to
3 the conveyance of a unit to the purchaser.
4 In the event any lien exists against 2 or more units and
5 the indebtedness secured by such lien is due and payable, the
6 unit owner of any such unit so affected may remove such unit
7 and the undivided interest in the common elements
8 appertaining thereto from such lien by payment of the
9 proportional amount of such indebtedness attributable to such
10 unit. In the event such lien exists against the units or
11 against the property, the amount of such proportional payment
12 shall be computed on the basis of the percentages set forth
13 in the declaration. Upon payment as herein provided, it is
14 the duty of the encumbrancer to execute and deliver to the
15 unit owner a release of such unit and the undivided interest
16 in the common elements appertaining thereto from such lien,
17 except that such proportional payment and release shall not
18 prevent the encumbrancer from proceeding to enforce his
19 rights against any unit or interest with respect to which
20 such lien has not been so paid or released.
21 The owner of a unit shall not be liable for any claims,
22 damages, or judgments, including but not limited to State or
23 local government fees or fines, entered as a result of any
24 action or inaction of the board of managers of the
25 association other than for mechanics' liens as set forth in
26 this Section. Unit owners other than the developer, members
27 of the board of managers other than the developer or
28 developer representatives, and the association of unit owners
29 shall not be liable for any claims, damages, or judgments,
30 including but not limited to State or local government fees
31 or fines, entered as result of any action or inaction of the
32 developer other than for mechanics' liens as set forth in
33 this Section. Each unit owner's liability for any judgment
34 entered against the board of managers or the association, if
-3- LRB9101314SMdvam01
1 any, shall be limited to his proportionate share of the
2 indebtedness as set forth in this Section, whether collection
3 is sought through assessment or otherwise. A unit owner shall
4 be liable for any claim, damage or judgment entered as a
5 result of the use or operation of his unit, or caused by his
6 own conduct. Before conveying a unit, a developer shall
7 record and or furnish purchaser releases of all liens
8 affecting that unit and its common element interest which the
9 purchaser does not expressly agree to take subject to or
10 assume, and or the developer shall provide a surety bond or
11 substitute collateral for or insurance against such liens for
12 which a release is not provided. After conveyance of such
13 unit, no mechanics lien shall be created against such unit or
14 its common element interest by reason of any subsequent
15 contract by the developer to improve or make additions to the
16 property.
17 Each mortgagee or other lienholder of the unit of a
18 common interest community or of a unit subject to the
19 Condominium Property Act shall provide an address to the unit
20 owners' association at the time the lien or mortgage is
21 recorded at which address such unit owners' association shall
22 send notice to such mortgagee or lienholder of any eminent
23 domain proceeding to which the association thereafter becomes
24 a party. If the mortgagee or lienholder has not provided an
25 address for notice purposes to the association, then such
26 notice shall be sent to all mortgagees or lienholders which
27 are named insureds on the master policy of insurance which
28 exists or may exist on the common interest community or unit
29 subject to the Condominium Property Act.
30 (b) Board of Managers' standing and capacity.
31 The board of managers shall have standing and capacity to
32 act in a representative capacity in relation to matters
33 involving the common elements or more than one unit, on
34 behalf of the unit owners, as their interests may appear.
-4- LRB9101314SMdvam01
1 (Source: P.A. 86-826.)"; and
2 on page 18, immediately below line 16, by inserting the
3 following:
4 "(765 ILCS 605/22) (from Ch. 30, par. 322)
5 Sec. 22. Full disclosure before sale. In relation to the
6 initial sale or offering for sale of any condominium unit,
7 the seller must make full disclosure of, and provide copies
8 to the prospective buyer of, the following information
9 relative to the condominium project:
10 (a) the Declaration;
11 (b) the Bylaws of the association;
12 (c) a projected operating budget for the condominium
13 unit to be sold to the prospective buyer, including full
14 details concerning the estimated monthly payments for the
15 condominium unit, estimated monthly charges for maintenance
16 or management of the condominium property, and monthly
17 charges for the use of recreational facilities; and
18 (d) a floor plan of the apartment to be purchased by the
19 prospective buyer and the street address of the unit, if any,
20 and if the unit has no unique street address, the street
21 address of the project.
22 (e) in addition, any developer of a conversion
23 condominium shall include the following information:
24 (1) A specific statement of the amount of any initial or
25 special condominium fee due from the purchaser on or before
26 settlement of the purchase contract and the basis of such
27 fee;
28 (2) Information, if available, on the actual
29 expenditures made on all repairs, maintenance, operation, or
30 upkeep of the subject building or buildings within the last 2
31 years, set forth tabularly with the proposed budget of the
32 condominium and cumulatively, broken down on a per unit basis
33 in proportion to the relative voting strengths allocated to
-5- LRB9101314SMdvam01
1 the units by the bylaws. If such building or buildings have
2 not been occupied for a period of 3 years then the
3 information shall be set forth for the last 2 year period
4 such building or buildings have been occupied;
5 (3) A description of any provisions made in the budget
6 for reserves for capital expenditures and an explanation of
7 the basis for such reserves, or, if no provision is made for
8 such reserves, a statement to that effect; and
9 (4) For developments of more than 6 units for which the
10 notice of intent to convert is issued after the effective
11 date of this amendatory Act of 1979, an engineer's report
12 furnished by the developer as to the present condition of all
13 structural components and major utility installations in the
14 condominium, which statement shall include the approximate
15 dates of construction, installation, major repairs and the
16 expected useful life of such items, together with the
17 estimated cost (in current dollars) of replacing such items;
18 and
19 (5) Any release, warranty, certificate of insurance, or
20 surety required by Section 9.1.
21 All of the information required by this Section which is
22 available at the time shall be furnished to the prospective
23 buyer before execution of the contract for sale. Thereafter,
24 no changes or amendments may be made in any of the items
25 furnished to the prospective buyer which would materially
26 affect the rights of the buyer or the value of the unit
27 without obtaining the approval of at least 75% of the buyers
28 then owning interest in the condominium. If all of the
29 information is not available at the time of execution of the
30 contract for sale, then the contract shall be voidable at
31 option of the buyer at any time up until 5 days after the
32 last item of required information is furnished to the
33 prospective buyer, or until the closing of the sale,
34 whichever is earlier. Failure on the part of the seller to
-6- LRB9101314SMdvam01
1 make full disclosure as required by this Section shall
2 entitle the buyer to rescind the contract for sale at any
3 time before the closing of the contract and to receive a
4 refund of all deposit moneys paid with interest thereon at
5 the rate then in effect for interest on judgments.
6 A sale is not an initial sale for the purposes of this
7 Section if there is not a bona fide transfer of the ownership
8 and possession of the condominium unit for the purpose of
9 occupancy of such unit as the result of the sale or if the
10 sale was entered into for the purpose of avoiding the
11 requirements of this Section. The buyer in the first bona
12 fide sale of any condominium unit has the rights granted to
13 buyers under this Section. If the buyer in any sale of a
14 condominium unit asserts that such sale is the first bona
15 fide sale of that unit, the seller has the burden of proving
16 that his interest was acquired through a bona fide sale.
17 (Source: P.A. 81-897.)".