13-72-025 Condominium disclosure summary.

“Blanket encumbrance” means a trust deed, mortgage, judgment or other lien on a condominium including any lien or other encumbrance arising as a result of the imposition of any tax assessment by a public authority.

“Board of managers” means the board of managers provided and referred to in the Illinois Condominium Property Act.

“Closing of the sale” means the operation of transferring ownership of a condominium unit to the purchaser from the developer.

“Commissioner” means the commissioner of business affairs and consumer protection.

“Common elements” means all of the condominium except the condominium units. “Common elements” also includes limited common elements.

“Condominium” means a form of property established pursuant to the Illinois Condominium Property Act.

“Condominium Disclosure Summary” or “Disclosure Summary” means the summary required in accordance with Section 13-72-025.

“Condominium project” means the sale of or plan by a developer to sell or the offering for sale of residential condominium units in an existing building or building to be constructed or under construction, and shall include a conversion condominium.

“Condominium unit” or “unit” means a separate three-dimensional area within the condominium identified as such in the declaration and on the condominium plat and shall include all improvements contained within such area except those excluded in the declaration.

“Conversion”, “convert”, or like words means the offering for sale by a developer or his agent of a condominium unit occupied or rented for any purpose by any person before commencement of a condominium project which includes such unit.

“Declaration” means the declaration referred to in the Illinois Condominium Property Act.

“Developer” means any person who submits property legally or equitably owned by him to the provisions of the Illinois Condominium Property Act including any successor to such developer's entire interest in the property; or any person who offers units legally or equitably owned by him for sale in the ordinary course of his business.

“Offering” means any inducement, solicitation, advertisement, publication or announcement by a developer to any person or the general public to encourage a person to purchase a condominium unit in a condominium or prospective condominium.

“Property report” means the property report required in accordance with Section 13-72-020 of this chapter.

“Prospective purchaser” means a person who visits the condominium project site for the purpose of inspection for possible purchase or who requests the property report or disclosure summary.

“Residential condominium unit” means a condominium unit arranged, designed, used or intended to be used primarily for residential occupancy.

“Conversion condominium,” “Parcel,” “Person” and “Record” have the same meaning ascribed to those terms in the Illinois Condominium Act, 765 ILCS 605 et seq., as amended.

“Landlord,” “Rent,” “Rental Agreement” and “Tenant” have the same meaning ascribed to those terms as in Section 5-12-030.

(Prior code § 100.2-1; Amend Coun. J. 5-4-11, p. 118299, § 3; Amend Coun. J. 11-16-11, p. 13798, Art. X, § 3)

13-72-020 Contents of property report.

A property report shall contain the following:

(A) A statement indicating name and address of:

(1) The developer and legal and beneficial owner, if different, of the land and improvements, including all general partners of a partnership or principal executive officers and directors of a corporation; provided that for any property report for a condominium project for which a declaration is recorded on or after January 1, 2012, the property report shall also include, if a partnership or limited partnership, the names and addresses of all general partners; if a corporation, the names and address of all principal executive officers and directors, or, if a limited liability company, the names and addresses of all members and managers; provided further that whenever a stock or beneficial interest is held by a corporation, partnership, limited partnership, limited liability company or any other legal entity, other than a natural person, such shareholder or beneficiary shall also make such disclosures as required by this section;

(2) Interim and permanent mortgages or construction lenders secured by a blanket encumbrance;

(3) The principal sales and management agents, attorneys, accountants, architects, engineers and contractors for the project;

(B) A description of all property and improvements including the following:

(1) Map, plat, or architect's drawing showing location and dimensions of the condominium project and the land it occupies together with all improvements, including recreational facilities, proposed construction and present and planned location of streets and driveways;

(2) The share of ownership of each unit in the common elements. The identity of owners of such condominium unit including the percentage of former renters who have purchased or contracted to purchase a condominium unit when the property is a conversion, if known. If such units are owned in trust or by nominees, the beneficiaries or principal shall be named, if known;

(3) A description of all of the common elements in the project including a description of all existing and proposed recreational facilities, and other such facilities within the project. Limited common elements, if any, and their ownership shall also be indicated;

(4) A description of the nature and ownership of all improvements occupying the same zoning lot but which are not part of the condominium;

(5) Location, nature and ownership of easement streets and driveways on or contiguous to the condominium;

(6) The identification of drawings, architectural plans and other suitable documents setting forth the necessary information for location, maintenance and repair of all condominium facilities and equipment, to the extent these documents exist, their location, and times at which they may be inspected;

(7) Projected initiation and completion dates, for proposed construction, renovation and conversion;

(8) A description of limitations upon uses permitted in individual condominium units as contained in the declaration, and bylaws of the condominium association and applicable zoning provisions. Such description shall state whether or under what conditions the condominium units may be rented together by the unit owner;

(9) Statement as to whether a purchaser may purchase more than one unit and under what circumstances or conditions;

(10) Statement of legal ownership, listing all restrictions, notices, lis pendens and encumbrances of record;

(C) Method of timing of transfer of control of the condominium to the board of managers and the nature and extent of any interest retained by the developer thereafter;

(D) A statement disclosing the existence of penalties if the construction, renovation, or conversion or completion date is not met and the additional costs to be imposed upon unit owners if such date is not met;

(E) The nature and extent of any protection of a purchaser if the developer defaults on blanket encumbrances;

(F) A statement of any litigation which would affect the condominium or the developer's ability to convey clear title;

(G) A statement of the current taxes and estimated changes in the tax assessment of the condominium units which buyers may encounter during the first two years.

(H) Copies of the forms of sales documents applicable to the individual units, including but not limited to:

(1) Basic purchase contract form being used by the developer;

(2) Deeds of conveyance;

(3) Deed of trust, mortgage and promissory note, if any;

(I) Statement of sales prices, terms, options and conditions of sale of each unsold unit, including estimated closing and settlement costs and transfer taxes;

(J) Statement of estimated monthly payments for each unit to be itemized as to taxes, utilities, operating costs, assessments, parking, recreational facilities and all other payments in the first year after the projected date of assumption of control by the board of managers.

(K) If financed by the developer, the proposed financing of each unit, including percent of sales price required for down payment, duration of the loan interest rate, service charge, appraisal charge, closing charges, and total monthly payment;

(L) A description of all appliances and personal property included with each unit;

(M) (1) Copies of the following documents:

(a) The declaration and plat. However, prior to the recordation of the declaration, a preliminary declaration and plat may be supplied, provided it is accompanied by a statement in type size and style equal to at least ten point boldface type as follows:

THE DESCRIPTION OF UNITS AND PERCENTAGE OF OWNERSHIP INTEREST IN COMMON ELEMENTS HEREIN IS PRELIMINARY AND MAY BE CHANGED IN MATERIAL RESPECTS UPON THE RECORDING OF THE DECLARATION AND PLAT.

(b) The articles of incorporation or charter of the condominium association, if any;

(2) The description of the following documents:

(a) Any leases of real or personal property in the condominium expiring later than two years after the first unit is offered for sale;

(b) Any management contract, employment contract, insurance policy, or other contract affecting the use, maintenance or access of all or part of the condominium expiring later than two years after the first unit is offered for sale;

(c) The coverage and amounts of insurance policies applicable to the condominium, maintained by or on behalf of the developer;

(N) A statement of management and expected management costs of the condominium including:

(1) Name of management agent, if any, and the services the agent will perform;

(2) Length of term of any management contract, its costs, and the circumstances if any, under which the charges may be increased;

(3) The conditions, if any, under which the contract may be cancelled or terminated;

(4) A statement stating the relationship between the developer and the management firm and their respective corporate officers and controlling interests, if any;

(O) An estimated operating budget, including the basis on which each item included in such operating budget was formulated for the condominium projected for a period of one year from the expected date that control of the condominium project passes to the board of managers. The operating budget shall include at least the following:

(1) Operating costs

Utilities

Heating fuels

Janitorial services

Trash and garbage disposal

Ground and building maintenance

Security

Maintenance and operation of recreational and other facilities

Building insurance

Elevator maintenance

Sidewalks and street maintenance

Other operating costs

(2) Management costs

Accounting and bookkeeping services

Legal services

Management fees

(3) Reserve costs

Reserve for improvements

Reserve for unexpected repair work

Reserve for replacement and upkeep of common area and facilities

Reserve for taxes and special assessments.

If no reserve is provided for any one or more of the costs listed herein, the following statement must be inserted in the property report in a type the size and style equal to at least ten point bold type:

THE DEVELOPER HAS NOT PROVIDED A RESERVE FOR CERTAIN POSSIBLE FUTURE COSTS OF THE CONDOMINIUM IN HIS BUDGET.
ACCORDINGLY, IT MAY BE NECESSARY TO PROVIDE FOR A SPECIAL ASSESSMENT TO ALL CONDOMINIUM UNIT OWNERS TO PAY FOR SUCH COSTS SHOULD THEY OCCUR.

(P) Provisions, if any, the developer has made to cover the proposed operations and maintenance budget in the event an insufficient number of units are sold;

(Q) (1) If a condominium conversion, a report from a qualified licensed engineer or registered architect describing the condition and expected useful life of the roof, foundation, external and supporting walls, mechanical, electrical, plumbing, heating, and structural elements and all other common facilities, together with an estimate of repair and replacement costs, for those items needing repair or replacement, at current market prices. This report shall include the approximate dates of installation of the facilities listed above and the dates of major repairs to such facilities. There shall be attached to such report (1) a statement of the developer that no notice of violations of the building provisions of the Municipal Code pertaining to the condominium building have been received by the owner or his predecessors for ten years preceding the property report and its latest amending or (2) a list of all notices of violations of the building provisions of the Municipal Code received, together with a detailed statement of all violations referred to in such notices, for the prior ten years;

(2) For all condominium projects which are not a condominium conversion and for which a declaration is recorded on or after January 1, 2012, a report that is signed and sealed either by a licensed architect or engineer that certifies that the building plans are in compliance with the requirements of the applicable provisions of the building code, and that estimates the expected useful life of the roof, foundation, external and supporting walls, mechanical, electrical, plumbing, heating, and structural elements and all other common facilities;

(R) (1) A statement of whether, and under what circumstances, the unit owners are required to be a member of, support, or participate financially in recreational facilities, such as but not limited to health clubs, exercise rooms, swimming pools, party rooms and golf putting greens. If any such facility is not part of the common elements, the following warning shall be included in capital letters, in a type size and style equal to at least ten point bold type:

THE (HERE NAME FACILITIES) ARE NOT INCLUDED IN THE COMMON ELEMENTS. THESE FACILITIES ARE AVAILABLE TO UNIT OWNER FOR (HERE DESCRIBE MONTHLY CHARGE AND INITIATION FEE).
UNIT OWNERS ARE/ARE NOT (AS APPLICABLE) REQUIRED TO PARTICIPATE FINANCIALLY.

(2) A description of the location, ownership, and availability to unit owners and the general public of accessory off-street parking associated with the condominium. If all of such parking facilities are not (a) part of the common elements or (b) divided as individual parking space among and designated as being part of the units, the following statement shall be included in a type and size and equal to at least ten point bold type:

PARKING FACILITIES ASSOCIATED WITH THIS BUILDING ARE NOT OWNED BY THE UNIT OWNERS AND MAY BE SUBJECT TO BEING DENIED TO OR TAKEN FROM UNIT OWNERS.

(S) A statement, if there are any restrictions upon the free sale, transfer, conveyance, encumbrance or leasing of a unit.

THE SALE, LEASE OR TRANSFER OF YOUR UNIT IS RESTRICTED OR CONTROLLED.

Immediately following this statement, there shall appear a reference to the documents, articles, paragraphs, and pages in the property report where the restriction, limitation or control on the sale, lease or transfer of units is set forth or described in detail.

(T) A statement on the first page the following warning in capital letters, in a type size and style equal to at least ten point bold type:

CITY OF CHICAGO LAW SPECIFICALLY PROHIBITS ANY REPRESENTATION TO THE EFFECT THAT THE CITY HAS PASSED UPON THE MERITS OF OR GIVEN APPROVAL TO MAKE OR CAUSE TO BE MADE TO ANY PROSPECTIVE PURCHASER ANY REPRESENTATIONS WHICH DIFFER FROM THE STATEMENTS IN THIS PROPERTY REPORT. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER AND ARE NOT BINDING ON THE DEVELOPER. REFER TO THE PROPERTY REPORT FOR BINDING REPRESENTATIONS.

(U) The signature of the executive officer of the developer and statement affirming that the report and any supplements, modifications and amendments are true, full, complete and correct.

The developer shall amend the property report from time to time when any material changes occur in any matter contained in such reports. Amendments shall be made as soon as practicable after such change occurs or the developer has reason to know of such change. Amendments shall be attached to reports subsequently distributed to prospective purchasers and shall be immediately distributed to all persons who have purchased or agreed to purchase condominium units.

No later than 30 days prior to the recording of the declaration and plat, the developer shall give notice of any material changes in said declaration and plat as described in the property report to each person who has executed a contract to purchase a unit.

(Prior code § 100.2-2; Amend Coun. J. 5-4-11, p. 118299, § 3)

13-72-025 Condominium disclosure summary.

(A) For a condominium project for which a declaration is recorded on or after January 1, 2012, the developer of the project shall prepare a condominium disclosure summary, which shall include a description of the following information:

(1) The condominium property;

(2) Parking;

(3) Appliances, heating, air conditioning, and hot water equipment, including warranties;

(4) Amenities and recreational facilities;

(5) Estimated operating expenses, reserves and assessments;

(6) If the project is a conversion condominium, a description of the renovation of the property, if any;

(7) Limitations and restrictions on sale, lease or use of units;

(8) Waste removal;

(9) Telecommunications services;

(10) Construction warranties;

(11) Windows;

(12) Type of masonry, if applicable;

(13) Elevators, if any;

(14) Security systems, if any;

(15) A list of all contractors and subcontractors, including the state and city license or registration numbers of the contractors and subcontractors who worked on any part of the building for conversion or construction as a condominium project; and

(16) Any other pertinent information required by the commissioner.

The developer shall attach to each disclosure summary a statement that notifies a prospective purchaser that, pursuant to the municipal code of Chicago, a certificate of occupancy that certifies that the unit complies with all applicable zoning or building code requirements may be required to be obtained, prior to occupying the residential condominium unit.

The disclosure summary shall be in the form prescribed by the commissioner in rules and regulations.

(B) The developer shall file a copy of the condominium disclosure summary with the commissioner no later than 90 days prior to the first offering for sale of any residential condominium unit. Any material changes or amendments to the disclosure summary shall be filed with the commissioner within 30 days of the change or amendment.

(Added Coun. J. 5-4-11, p. 118299, § 3)

13-72-030 Misrepresentation or omission.

No person shall with the intent that a prospective purchaser rely on such act or omission, advertise, sell or offer for sale any condominium unit by (a) employing any statement or pictorial representation which is false or (b) omitting any material statement or pictorial representation.

(Prior code § 100.2-3)

13-72-040 Discrimination.

No person shall be denied the right to purchase or lease a unit because of race, religion, sex, sexual preference, marital status or national origin.

(Prior code § 100.2-4)

13-72-050 Requirements for property report and disclosure summary distribution.

(A) Not later than the offering for sale of the first residential condominium unit, a developer of a condominium project of more than six units shall:

(1) Have a property report available for distribution to each prospective purchaser and for examination by the commissioner. A developer may make a charge, not to exceed $2.00, for each report so distributed;

(2) Make available for inspection by prospective purchasers copies of all documents that were filed or required to be filed in connection with the condominium project with the recorder of deeds of Cook County;

(3) Keep a receipt signed by each purchaser acknowledging that the person entering a contract to purchase has received and has had an opportunity to review the property report. Such receipts are to be kept on file in the possession of the developer for a period of three years from the date of signature of the purchaser and such receipts are subject to the inspection by the commissioner or the commissioner of business affairs and consumer protection at any reasonable time.

(B) For all condominium projects, regardless of the number of units, for which a declaration is recorded on or after January 1, 2012, the developer shall comply with the requirements of subsection (A) of this section. In addition to the requirements of subsection (A), the developer shall* make the disclosure summary available with marketing materials and distribute it at open houses and any showings; (ii) furnish the disclosure summary to a prospective buyer before the execution of any contract for the initial sale of a residential condominium unit; and (iii) keep a receipt signed by each purchaser acknowledging that the person entering a contract to purchase has received and has had an opportunity to review the condominium disclosure summary.

* Editor's note– As set forth in Coun. J. 5-4-11, p. 118299, § 3. Intended text is probably: “...the developer shall: (i) make....” Future legislation will correct the provision if needed.

(C) The board of managers shall keep a copy of the latest property report and condominium disclosure summary, if applicable, for seven years following the date of their initial distribution. Upon reasonable notice the property report shall be made available for inspection by any prospective purchaser of a unit from a unit owner.

(Prior code § 100.2-5; Amend Coun. J. 5-4-11, p. 118299, § 3)

13-72-060 Notice to tenants of intent to declare submission of property for condominium consideration required.

(A) (1) Subject to subsection (A)(2), no less than 120 days prior to recording the declaration submitting the property to the provisions of the Illinois Condominium Property Act, a developer shall give notice of such intent to record to all persons who are tenants of the building on the property on the date notice is given.

(2) For any condominium project for which a declaration is recorded on or after July 30, 2012, no less than 180 days, or in the case of any tenant who is over 65 years of age, or who is deaf or blind or who is unable to walk without assistance 210 days, prior to recording the declaration submitting the property to the provisions of the Illinois Condominium Property Act, a developer shall: (1) mail, by certified or registered mail, return receipt requested, a written notice of such intent to record, and attach to such notice the summary of a tenant's rights prepared by the commissioner pursuant to section 13-72-067, to all persons who are tenants of the building on the property on the date notice is given; and (2) post at all public entrances to the building, a statement that the property is being converted to condominiums and the tenants must receive notice, by certified mail, of such conversion and a summary of the tenant's rights. It is the duty of the developer to assure that the statement is posted at the required entrances for the entire tenant notice period required by this subsection (A)(2) prior to the recording of the declaration.

The developer shall: (i) keep all return receipts required by this subsection (A)(2) for a period of three years after the sale of the last unit in the condominium project; and (ii) at all times during the developer's business hours, and at all other times upon reasonable notice, make such receipts available for inspection by the commissioner.

(B) (1) Subject to subsection (B)(2), any person who was a tenant as of the date of the notice of intent and whose tenancy expires other than for cause prior to the expiration of 120 days from the date on which a copy of the notice of intent was received by the tenant shall have the right to an additional tenancy on the same terms and conditions and for the same rental until the expiration of such 120-day period by the giving of written notice thereof to the developer within 30 days of the date upon which a copy of the notice of intent was received by the tenant; provided, that in the case of any tenant who is over 65 years of age, or who is deaf or blind or who is unable to walk without assistance, said tenant shall have the right to an additional tenancy on the same terms and conditions and for the same rental for 180 days following receipt of said notice of intent to record by giving notice as aforesaid.

(2) For any condominium project for which a declaration is filed on or after July 30, 2012, any person who was a tenant as of the date of the notice of intent and whose tenancy expires other than for cause prior to the expiration of 180 days from the date on which a copy of the notice of intent was received by the tenant shall have the right to an additional tenancy on the same terms and conditions and for the same rental until the expiration of such 180-day period by the giving of written notice thereof to the developer within 30 days of the date upon which a copy of the notice of intent was received by the tenant; provided, that in the case of any tenant who is over 65 years of age, or who is deaf or blind or who is unable to walk without assistance, such tenant shall have the right to an additional tenancy on the same terms and conditions and for the same rental for 210 days following receipt of said notice of intent to record by giving notice as aforesaid.

(C) (1) Subject to subsection (C)(2), during the period of 120 days following his receipt of the notice of intent, and during a period of 180 days following his receipt of notice of intent in the case of any person who is over 65 years of age, or who is deaf or blind or who is unable to walk without assistance, any person who was both a tenant on the date of the notice of intent and a current tenant shall have the right of first refusal to purchase his unit.

(2) For a condominium project for which a declaration was recorded on or after July 30, 2012, during the period of 180 days following the receipt of the notice of intent, and during the period of 210 days following the receipt of notice of intent in the case of any person who is over 65 years of age, or who is deaf or blind or who is unable to walk without assistance, any person who was both a tenant on the date of the notice of intent and a current tenant shall have the right of first refusal to purchase his unit.

(3) The tenant must exercise the right of first refusal, if at all, by giving notice thereof to the developer prior to the expiration of 30 days from the giving of notice by the developer to the tenant that a contract to purchase the unit has been executed. Each contract for sale of a unit shall conspicuously disclose the existence of, and shall be subject to, such right of first refusal. The statement in the deed conveying the unit to a purchaser to the effect that the tenant of the unit either waived or failed to exercise the right of first refusal or had no right of first refusal with respect to the unit shall extinguish any legal or equitable right or interest to the possession or acquisition of the unit which the tenant may have or claim with respect to the unit arising out of the right of first refusal provided for in this section. The foregoing provisions shall not affect any claim which the tenant may have against the developer for damages arising out of the right of first refusal provided in this section, nor shall it affect the penalties provided in Section 13-72-110 hereof.

(D) No occupied unit shall be shown to any purchaser or prospective purchaser for 30 days after notice of intent to record, as provided herein, is given.

(E) Except as provided in subsections (A) and (F), any notice provided for in this section shall be given by a written notice delivered in person or mailed, certified or registered mail, return receipt requested, to the party who is being given the notice.

(F) Before the execution of any written or oral rental agreement entered into: (i) on or after January 1, 2012; and (ii) after the notice of intent to convert has been sent pursuant to subsection (A), the landlord shall give a written notice to a prospective tenant that the property has been submitted to the provisions of the Illinois Condominium Property Act and the building is being converted to condominiums. The written notice shall be attached to the written rental agreement, and in the case of an oral agreement, the written notice shall be given to the prospective tenant; provided that this provision shall not apply to the renewal of any lease for which the tenant has received notice pursuant to subsection (A).

(Prior code § 100.2-6; Amend Coun. J. 5-4-11, p. 118299, § 3; Amend Coun. J. 11-16-11, p. 13798, Art. X, § 3)

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