Joel Chupack Heinrich and Kramer, PC Chicago An In-Depth Look at Representing Purchasers of Condominiums Matthew Goldberg Bancroft, Richman and Goldberg, LLC May 17, 2017 Chicago Presented by: . Joel L. Chupack Attorney at Law Heinrich & Kramer, PC . Matthew J. Goldberg Attorney at Law Bancroft, Richman & Goldberg, LLC Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# Considerations Unique to a Condominium versus a House Joel Chupack Heinrich and Kramer, PC . Buyer is buying into a convenience lifestyle, but giving Chicago up control of finances, privacy, and neighbors. An association/management company is not a Matthew Goldberg landlord. Bancroft, Richman and Goldberg, LLC Chicago . The law is in flux both in legislation and in court decisions. Be clear on the scope of your representation. – Are you reviewing the condo documents? . Generally more time-consuming than a house deal. Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 1 The Condominium Contract Joel Chupack Heinrich and Kramer, PC . The 22.1 Disclosure Chicago – Make Buyer’s obligations contingent upon approval of disclosure. Matthew Goldberg – Be aware of what it covers and what it does not cover. Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# The Condominium Contract Joel Chupack Heinrich and Kramer, PC . The 22.1 Disclosure Chicago – #1: The Declaration, the By-Laws, and the Rules and Regulations . Leasing Matthew Goldberg Bancroft, Richman and Goldberg, LLC . Pets Chicago . Plat – Do you need to review it? Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 2 The Condominium Contract Joel Chupack Heinrich and Kramer, PC . The 22.1 Disclosure Chicago – #2: Liens . Regular and special assessments? . Amounts due under 9(g)(4)? Matthew Goldberg Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# The Condominium Contract Joel Chupack Heinrich and Kramer, PC . The 22.1 Disclosure Chicago – #3: Capital Expenditures . How will these be paid? Matthew Goldberg Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 3 The Condominium Contract Joel Chupack Heinrich and Kramer, PC . The 22.1 Disclosure Chicago – #4: Reserves – #5: Financial Condition Matthew Goldberg – #6: Pending Suits Bancroft, Richman and Goldberg, LLC Chicago – #7: Insurance Coverage – #8: Improvements to the Unit Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# The Condominium Contract Joel Chupack Heinrich and Kramer, PC . What does the 22.1 Disclosure not give you or tell you? Chicago – Minutes of Board Meetings – Operating Budget Matthew Goldberg . Current and Last Year’s Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 4 The Condominium Contract Joel Chupack Heinrich and Kramer, PC . Special Assessments Chicago – Levied – Gap Period (Between Contract and Closing) Matthew Goldberg . Multi-Board 6.1 and C.A.R. Condominium contract forms provide Bancroft, Richman and Goldberg, LLC that representation is as of the acceptance date. Chicago – Contemplated, but Not Yet Levied . Review minutes. Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# The Condominium Contract Joel Chupack Heinrich and Kramer, PC . Residential Real Property Disclosure Report Chicago – Applies only to the unit. Matthew Goldberg Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 5 The Condominium Contract Joel Chupack Heinrich and Kramer, PC . Inspection Chicago – Just the unit? Matthew Goldberg Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# The Condominium Contract Joel Chupack Heinrich and Kramer, PC . Lender’s Condo Disclosure Form Chicago Matthew Goldberg Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 6 The Condominium Contract Joel Chupack Heinrich and Kramer, PC . Parking Chicago – Deeded, Limited Common Element, or Assigned . Review plat for location and designation. Matthew Goldberg Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# The Condominium Contract Joel Chupack Heinrich and Kramer, PC . Other Limited Common Elements Chicago – Storage – Roof Rights Matthew Goldberg – Balconies Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 7 The Closing Joel Chupack Heinrich and Kramer, PC . The Paid Assessment Letter (PAL) Chicago – Right of First Refusal – Chicago: Water Responsibility Matthew Goldberg – To what extent can you rely on the PAL? Bancroft, Richman and Goldberg, LLC Chicago Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# The Closing Joel Chupack Heinrich and Kramer, PC . Prorations Chicago – If Seller paid current month’s assessment, Seller will take credit for the number of days from the date of closing to the end of the month. Matthew Goldberg Bancroft, Richman and Goldberg, LLC – Do not forget about prorating taxes on the deeded parking Chicago space. Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 8 The Closing Joel Chupack Heinrich and Kramer, PC . Move-In Fees and Prerequisites Chicago . Unit Owner’s Insurance Policy . Keys, Fobs, Transmitters, Codes Matthew Goldberg Bancroft, Richman and Goldberg, LLC . Waived Title Commitment Chicago – All Condo Exceptions Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# The Distressed Condominium Project/Unit Joel Chupack Heinrich and Kramer, PC . Lack of Reserves Chicago . Lack of Meetings . Need for Special Assessments Matthew Goldberg Bancroft, Richman and Goldberg, LLC . Lack of Enforcement of Rules Chicago . Owner Occupancy Percentage Effect on Financing Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 9 The Distressed Condominium Project/Unit Joel Chupack Heinrich and Kramer, PC . 765 ILCS 605/9(g)(4) Chicago – The purchaser of a condominium at a judicial foreclosure sale, other than a mortgagee, who takes possession of a condominium unit pursuant to a court order or a purchaser who acquires title Matthew Goldberg Bancroft, Richman and Goldberg, LLC from a mortgagee shall have the duty to pay the proportionate Chicago share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration during the 6 months immediately preceding institution of an action to enforce the collection of assessments, and which remain unpaid by the owner during whose possession the assessments accrued. If the outstanding assessments are paid at any time during any action to enforce the collection of assessments, the purchaser shall have no obligation to pay any assessments which accrued before he or she acquired title. Audio problems? ATG LEGAL EDUCATION Listen by phone: 877.691.9300 An In-Depth Look at Representing Purchasers of Condominiums Access Code: 7521231# 10 (765 ILCS 605/22.1) (from Ch. 30, par. 322.1) Sec. 22.1. (a) In the event of any resale of a condominium unit by a unit owner other than the developer such owner shall obtain from the Board of Managers and shall make available for inspection to the prospective purchaser, upon demand, the following: (1) A copy of the Declaration, by-laws, other condominium instruments and any rules and regulations. (2) A statement of any liens, including a statement of the account of the unit setting forth the amounts of unpaid assessments and other charges due and owing as authorized and limited by the provisions of Section 9 of this Act or the condominium instruments. (3) A statement of any capital expenditures anticipated by the unit owner's association within the current or succeeding two fiscal years. (4) A statement of the status and amount of any reserve for replacement fund and any portion of such fund earmarked for any specified project by the Board of