Bill Text: IL HB5509 | 2009-2010 | 96th General Assembly | Enrolled
Bill Title: Amends the Code of Civil Procedure. Provides that the notice of a judicial sale of a unit of a common interest community must contain a statement concerning liability for common expenses. Amends the Condominium Property Act to provide that a purchaser of such a unit at a judicial foreclosure sale or who acquires title from a mortgagee has the duty to pay certain proportionate common expenses. Contains other provisions. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Enrolled - Dead) 2010-05-26 - Sent to the Governor [HB5509 Detail]
Download: Illinois-2009-HB5509-Enrolled.html
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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Code of Civil Procedure is amended by | ||||||
5 | changing Section 15-1507 as follows:
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6 | (735 ILCS 5/15-1507) (from Ch. 110, par. 15-1507)
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7 | Sec. 15-1507. Judicial Sale.
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8 | (a) In General. Except as provided in
Sections 15-1402 and | ||||||
9 | 15-1403, upon entry of a judgment of foreclosure, the
real | ||||||
10 | estate which is the subject of the judgment shall be sold at a
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11 | judicial sale in accordance with this Section 15-1507.
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12 | (b) Sale Procedures. Upon expiration of the reinstatement | ||||||
13 | period and
the redemption period in accordance with subsection | ||||||
14 | (b) or (c) of Section
15-1603 or upon the entry of a judgment | ||||||
15 | of foreclosure after the waiver of
all rights of redemption, | ||||||
16 | except as provided in subsection (g) of Section
15-1506, the | ||||||
17 | real estate shall be sold at a sale as provided in this
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18 | Article, on such terms and conditions as shall be specified by | ||||||
19 | the court in
the judgment of foreclosure. A sale may be | ||||||
20 | conducted by any judge or sheriff.
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21 | (c) Notice of Sale. The mortgagee, or such other party | ||||||
22 | designated by the
court, in a foreclosure under this Article | ||||||
23 | shall give public notice of the
sale as follows:
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1 | (1) The notice of sale shall include at least the | ||||||
2 | following information,
but an immaterial error in the | ||||||
3 | information shall not invalidate the legal
effect of the | ||||||
4 | notice:
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5 | (A) the name, address and telephone number of the | ||||||
6 | person to contact for
information regarding the real | ||||||
7 | estate;
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8 | (B) the common address and other common | ||||||
9 | description (other than legal
description), if any, of | ||||||
10 | the real estate;
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11 | (C) a legal description of the real estate | ||||||
12 | sufficient to identify it with
reasonable certainty;
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13 | (D) a description of the improvements on the real | ||||||
14 | estate;
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15 | (E) the times specified in the judgment, if any, | ||||||
16 | when the real estate
may be inspected prior to sale;
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17 | (F) the time and place of the sale;
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18 | (G) the terms of the sale;
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19 | (H) the case title, case number and the court in | ||||||
20 | which
the foreclosure was filed;
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21 | (H-1) in the case of a condominium unit to which | ||||||
22 | subsection (g) of Section 9 of the Condominium Property | ||||||
23 | Act applies, the statement required by subdivision | ||||||
24 | (g)(5) of Section 9 of the Condominium Property Act; | ||||||
25 | and
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26 | (H-2) in the case of a unit of a common interest |
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1 | community to which subsection (g-1) of Section 18.5 of | ||||||
2 | the Condominium Property Act applies, the statement | ||||||
3 | required by subdivision (g-1) of Section 18.5 of the | ||||||
4 | Condominium Property Act; and
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5 | (I) such other information ordered by the Court.
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6 | (2) The notice of sale shall be published at least 3 | ||||||
7 | consecutive
calendar weeks (Sunday through Saturday), once | ||||||
8 | in each week, the first such
notice to be published not | ||||||
9 | more than 45 days prior to the sale, the last
such notice | ||||||
10 | to be published not less than 7 days prior to the sale, by:
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11 | (i) (A) advertisements in a newspaper circulated to the | ||||||
12 | general public
in the county in which the real estate is | ||||||
13 | located, in the section of that
newspaper where legal | ||||||
14 | notices are commonly placed and (B) separate
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15 | advertisements in the section of such a newspaper, which | ||||||
16 | (except in
counties with a population in excess of | ||||||
17 | 3,000,000) may be the same
newspaper, in which real estate | ||||||
18 | other than real estate being sold as part of
legal | ||||||
19 | proceedings is commonly advertised to the general public; | ||||||
20 | provided,
that the separate advertisements in the real | ||||||
21 | estate section need not
include a legal description and | ||||||
22 | that where both advertisements could be
published in the | ||||||
23 | same newspaper and that newspaper does not have separate
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24 | legal notices and real estate advertisement sections, a | ||||||
25 | single
advertisement with the legal description shall be | ||||||
26 | sufficient; and
(ii) such other publications as may be |
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1 | further ordered by the court.
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2 | (3) The party who gives notice of public sale in | ||||||
3 | accordance with
subsection (c) of Section 15-1507 shall | ||||||
4 | also give notice to all parties in
the action who have | ||||||
5 | appeared and have not theretofore been found by the
court | ||||||
6 | to be in default for failure to plead. Such notice shall be | ||||||
7 | given in
the manner provided in the applicable rules of | ||||||
8 | court for service of papers
other than process and | ||||||
9 | complaint, not more than 45 days nor less
than 7
days prior | ||||||
10 | to the day of sale. After notice is given as required in | ||||||
11 | this
Section a copy thereof shall be filed in the office of | ||||||
12 | the clerk of the
court entering the judgment, together with | ||||||
13 | a certificate of counsel or
other proof that notice has | ||||||
14 | been served in compliance with this Section.
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15 | (4) The party who gives notice of public sale in | ||||||
16 | accordance with
subsection (c) of Section 15-1507 shall | ||||||
17 | again give notice in accordance
with that Section of any | ||||||
18 | adjourned sale; provided, however, that if the
adjourned | ||||||
19 | sale is to occur less than 60 days after the last scheduled | ||||||
20 | sale,
notice of any adjourned sale need not be given | ||||||
21 | pursuant to this
Section. In the event of adjournment, the
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22 | person conducting the sale shall, upon adjournment, | ||||||
23 | announce the date, time
and place upon which the adjourned | ||||||
24 | sale shall be held. Notwithstanding any
language to the | ||||||
25 | contrary, for any adjourned sale that is to be conducted
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26 | more than 60 days after the date on which it was to first |
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1 | be held, the
party giving notice of such sale shall again | ||||||
2 | give notice in accordance with
this Section.
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3 | (5) Notice of the sale may be given prior to the | ||||||
4 | expiration of any
reinstatement period or redemption | ||||||
5 | period.
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6 | (6) No other notice by publication or posting shall be | ||||||
7 | necessary unless
required by order or rule of the court.
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8 | (7) The person named in the notice of sale to be | ||||||
9 | contacted for
information about the real estate may, but | ||||||
10 | shall not be required, to
provide additional information | ||||||
11 | other than that set forth in the notice of sale.
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12 | (d) Election of Property. If the real estate which is the | ||||||
13 | subject of a
judgment of foreclosure is susceptible of | ||||||
14 | division, the court may order it to be sold
as necessary to | ||||||
15 | satisfy the judgment. The court shall determine which real
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16 | estate shall be sold, and the court may determine the order in | ||||||
17 | which
separate tracts may be sold.
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18 | (e) Receipt upon Sale.
Upon and at the sale
of mortgaged | ||||||
19 | real estate, the person conducting the sale shall give to
the | ||||||
20 | purchaser a receipt of sale. The receipt shall describe the | ||||||
21 | real
estate purchased and shall show the amount bid, the amount | ||||||
22 | paid, the
total amount paid to
date and the amount still to be | ||||||
23 | paid therefor. An
additional receipt shall be given at the time | ||||||
24 | of each subsequent
payment.
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25 | (f) Certificate of Sale. Upon
payment in full of the amount | ||||||
26 | bid, the person conducting
the sale shall issue, in duplicate, |
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1 | and give to the purchaser a Certificate
of Sale. The | ||||||
2 | Certificate of Sale shall be in a recordable form, describe
the | ||||||
3 | real estate purchased, indicate the date and place of sale and | ||||||
4 | show the
amount paid therefor. The Certificate of Sale shall | ||||||
5 | further indicate that
it is subject to confirmation by the | ||||||
6 | court. The duplicate certificate may
be recorded in accordance | ||||||
7 | with Section 12-121. The Certificate of Sale
shall be freely | ||||||
8 | assignable by endorsement thereon.
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9 | (g) Interest after Sale. Any bid at sale shall be deemed to | ||||||
10 | include,
without the necessity of a court order, interest at | ||||||
11 | the statutory judgment
rate on any unpaid portion of the sale | ||||||
12 | price from the date of sale to the
date of payment.
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13 | (Source: P.A. 94-1049, eff. 1-1-07.)
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14 | Section 10. The Condominium Property Act is amended by | ||||||
15 | changing Section 18.5 as follows:
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16 | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
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17 | Sec. 18.5. Master Associations.
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18 | (a) If the declaration, other condominium instrument, or | ||||||
19 | other duly
recorded covenants provide that any of the powers of | ||||||
20 | the unit owners
associations are to be exercised by or may be | ||||||
21 | delegated to a nonprofit
corporation or unincorporated | ||||||
22 | association that exercises
those or other powers on behalf of | ||||||
23 | one or more condominiums, or for the
benefit of the unit owners | ||||||
24 | of one or more condominiums, such
corporation or association |
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1 | shall be a master association.
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2 | (b) There shall be included in the declaration, other
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3 | condominium instruments, or other duly recorded covenants | ||||||
4 | establishing
the powers and duties of the master association | ||||||
5 | the provisions set forth in
subsections (c) through (h).
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6 | In interpreting subsections (c) through (h), the courts | ||||||
7 | should
interpret these provisions so that they are interpreted | ||||||
8 | consistently with
the similar parallel provisions found in | ||||||
9 | other parts of this Act.
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10 | (c) Meetings and finances.
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11 | (1) Each unit owner of a condominium subject to the | ||||||
12 | authority of
the board of the master association shall | ||||||
13 | receive, at least 30 days prior
to the adoption thereof by | ||||||
14 | the board of the master association, a copy of
the proposed | ||||||
15 | annual budget.
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16 | (2) The board of the master association shall annually | ||||||
17 | supply to
all unit owners of condominiums subject to the | ||||||
18 | authority of the board
of the master association an | ||||||
19 | itemized accounting of the common
expenses for the | ||||||
20 | preceding year actually incurred or paid, together with a
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21 | tabulation of the amounts collected pursuant to the budget | ||||||
22 | or assessment,
and showing the net excess or deficit of | ||||||
23 | income over expenditures plus
reserves.
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24 | (3) Each unit owner of a condominium subject to the | ||||||
25 | authority of
the board of the master association shall | ||||||
26 | receive written notice mailed
or delivered no less than 10 |
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1 | and no more than 30 days prior to any meeting
of the board | ||||||
2 | of the master association concerning the adoption of the | ||||||
3 | proposed
annual budget or any increase in the budget, or | ||||||
4 | establishment of an
assessment.
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5 | (4) Meetings of the board of the master association | ||||||
6 | shall be open
to any unit owner in a condominium subject to | ||||||
7 | the authority of the board
of the master association, | ||||||
8 | except for the portion of any meeting held:
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9 | (A) to discuss litigation when an action against or | ||||||
10 | on behalf of the
particular master association has been | ||||||
11 | filed and is pending in a court or
administrative | ||||||
12 | tribunal, or when the board of the master association | ||||||
13 | finds
that such an action is probable or imminent,
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14 | (B) to consider information regarding appointment, | ||||||
15 | employment or
dismissal of an employee, or
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16 | (C) to discuss violations of rules and regulations | ||||||
17 | of the master
association or unpaid common expenses | ||||||
18 | owed to the master association.
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19 | Any vote on these matters shall be taken at a meeting or | ||||||
20 | portion thereof
open to any unit owner of a condominium | ||||||
21 | subject to the authority of the
master association.
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22 | Any unit owner may record the proceedings at meetings | ||||||
23 | required
to be open by this Act by tape, film or other | ||||||
24 | means; the board may
prescribe reasonable rules and | ||||||
25 | regulations to govern the right to make such
recordings. | ||||||
26 | Notice of meetings shall be mailed or delivered at least 48
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1 | hours prior thereto, unless a written waiver of such notice | ||||||
2 | is signed by
the persons entitled to notice before the | ||||||
3 | meeting is convened. Copies of
notices of meetings of the | ||||||
4 | board of the master association shall be posted
in | ||||||
5 | entranceways, elevators, or other conspicuous places in | ||||||
6 | the condominium
at least 48 hours prior to the meeting of | ||||||
7 | the board of the master
association. Where there is no | ||||||
8 | common entranceway for 7 or more units, the
board of the | ||||||
9 | master association may designate one or more locations in | ||||||
10 | the
proximity of these units where the notices of meetings | ||||||
11 | shall be posted.
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12 | (5) If the declaration provides for election by unit | ||||||
13 | owners of members
of the board of directors in the event of | ||||||
14 | a resale of a unit in the master
association, the purchaser | ||||||
15 | of a unit from a seller other than the developer
pursuant | ||||||
16 | to an installment contract for purchase shall, during such
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17 | times as he or she resides in the unit, be counted toward a | ||||||
18 | quorum for
purposes of election of members of the board of | ||||||
19 | directors at any
meeting of the unit owners called for | ||||||
20 | purposes of electing members of the
board, and shall have | ||||||
21 | the right to vote for the election of members of
the board | ||||||
22 | of directors and to be elected to and serve on the board of
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23 | directors unless the seller expressly retains in writing
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24 | any or all of those rights. In no event may the seller and
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25 | purchaser both be counted toward a quorum, be permitted to | ||||||
26 | vote for a
particular office, or be elected and serve on |
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1 | the board. Satisfactory
evidence of the installment | ||||||
2 | contract shall be made available to the
association or its | ||||||
3 | agents. For purposes of this subsection, "installment
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4 | contract" shall have the same meaning as set forth in | ||||||
5 | subsection (e) of
Section 1 of the Dwelling Unit | ||||||
6 | Installment Contract Act.
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7 | (6) The board of the master association shall have the | ||||||
8 | authority to
establish and maintain a system of master | ||||||
9 | metering of public utility
services and to collect payments | ||||||
10 | in connection therewith, subject to the
requirements of the | ||||||
11 | Tenant Utility Payment Disclosure Act.
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12 | (7) The board of the master association or a common | ||||||
13 | interest community
association shall have the power, after | ||||||
14 | notice and an opportunity to be heard,
to levy and collect | ||||||
15 | reasonable fines from members for violations of the
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16 | declaration, bylaws, and rules and regulations of the | ||||||
17 | master association or
the common interest community | ||||||
18 | association. Nothing contained in this
subdivision (7) | ||||||
19 | shall give rise to a statutory lien for unpaid fines.
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20 | (8) Other than attorney's fees, no fees pertaining to | ||||||
21 | the collection of a unit owner's financial obligation to | ||||||
22 | the Association, including fees charged by a manager or | ||||||
23 | managing agent, shall be added to and deemed a part of an | ||||||
24 | owner's respective share of the common expenses unless: (i) | ||||||
25 | the managing agent fees relate to the costs to collect | ||||||
26 | common expenses for the Association; (ii) the fees are set |
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1 | forth in a contract between the managing agent and the | ||||||
2 | Association; and (iii) the authority to add the management | ||||||
3 | fees to an owner's respective share of the common expenses | ||||||
4 | is specifically stated in the declaration or bylaws of the | ||||||
5 | Association. | ||||||
6 | (d) Records.
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7 | (1) The board of the master association shall maintain | ||||||
8 | the following
records of the association and make them | ||||||
9 | available for examination and
copying at convenient hours | ||||||
10 | of weekdays by any unit owners in a condominium
subject to | ||||||
11 | the authority of the board or their mortgagees and their | ||||||
12 | duly
authorized agents or attorneys:
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13 | (i) Copies of the recorded declaration, other | ||||||
14 | condominium instruments,
other duly recorded covenants | ||||||
15 | and bylaws and any amendments, articles of
| ||||||
16 | incorporation of the master association, annual | ||||||
17 | reports and any rules and
regulations adopted by the | ||||||
18 | master association or its board shall
be available. | ||||||
19 | Prior to the organization of the master association, | ||||||
20 | the
developer shall maintain and make available the | ||||||
21 | records set forth in this
subdivision (d)(1) for | ||||||
22 | examination and copying.
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23 | (ii) Detailed and accurate records in | ||||||
24 | chronological order of the
receipts and expenditures | ||||||
25 | affecting the common areas, specifying and
itemizing | ||||||
26 | the maintenance and repair expenses of the common areas |
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1 | and any
other expenses incurred, and copies of all | ||||||
2 | contracts, leases, or other
agreements entered into by | ||||||
3 | the master association, shall be maintained.
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4 | (iii) The minutes of all meetings of the master | ||||||
5 | association and the
board of the master association | ||||||
6 | shall be maintained for not less than 7 years.
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7 | (iv) Ballots and proxies related thereto, if any, | ||||||
8 | for any election
held for the board of the master | ||||||
9 | association and for any other matters
voted on by the | ||||||
10 | unit owners shall be maintained for
not less than one | ||||||
11 | year.
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12 | (v) Such other records of the master association as | ||||||
13 | are available
for inspection by members of a | ||||||
14 | not-for-profit corporation pursuant to
Section 107.75 | ||||||
15 | of the General Not For Profit Corporation Act of 1986 | ||||||
16 | shall
be maintained.
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17 | (vi) With respect to units owned by a land trust, | ||||||
18 | if a trustee
designates in writing a person to cast | ||||||
19 | votes on behalf of the unit
owner, the designation | ||||||
20 | shall remain in effect until a subsequent document
is | ||||||
21 | filed with the association.
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22 | (2) Where a request for records under this subsection | ||||||
23 | is made in writing
to the board of managers or its agent, | ||||||
24 | failure to provide the requested
record or to respond | ||||||
25 | within 30 days shall be deemed a denial by the board
of | ||||||
26 | directors.
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1 | (3) A reasonable fee may be charged by the master | ||||||
2 | association or its
board for the cost of copying.
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3 | (4) If the board of directors fails to provide records | ||||||
4 | properly
requested under subdivision (d)(1) within the
| ||||||
5 | time period provided in subdivision (d)(2), the
unit owner | ||||||
6 | may seek appropriate relief, including an award of
| ||||||
7 | attorney's fees and costs.
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8 | (e) The board of directors shall have standing and capacity | ||||||
9 | to act in
a representative capacity in relation to matters | ||||||
10 | involving the common areas
of the master association or more | ||||||
11 | than one unit, on behalf of the unit
owners as their interests | ||||||
12 | may appear.
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13 | (f) Administration of property prior to election of the | ||||||
14 | initial board
of directors.
| ||||||
15 | (1) Until the election, by the unit owners or the | ||||||
16 | boards of
managers of the underlying condominium | ||||||
17 | associations, of the initial board
of directors of a master | ||||||
18 | association whose declaration is recorded on
or after | ||||||
19 | August 10, 1990, the same rights, titles, powers, | ||||||
20 | privileges,
trusts, duties and obligations that are vested | ||||||
21 | in or imposed upon the board
of directors by this Act or in | ||||||
22 | the declaration or other duly recorded
covenant shall be | ||||||
23 | held and performed by the developer.
| ||||||
24 | (2) The election of the initial board of directors of a | ||||||
25 | master
association whose declaration is recorded on or | ||||||
26 | after August 10, 1990, by
the unit owners or the boards of |
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1 | managers of the underlying condominium
associations, shall | ||||||
2 | be held not later than 60 days after the conveyance by
the | ||||||
3 | developer of 75% of the units, or 3 years after the | ||||||
4 | recording of the
declaration, whichever is earlier. The | ||||||
5 | developer shall give at least 21
days notice of the meeting | ||||||
6 | to elect the initial board of directors and
shall upon | ||||||
7 | request provide to any unit owner, within 3 working days of | ||||||
8 | the
request, the names, addresses, and weighted vote of | ||||||
9 | each unit owner entitled to vote at the
meeting. Any unit | ||||||
10 | owner shall upon receipt of the request be provided with
| ||||||
11 | the same
information, within 10 days of the request, with | ||||||
12 | respect to
each
subsequent meeting to elect members of the | ||||||
13 | board of directors.
| ||||||
14 | (3) If the initial board of directors of a master | ||||||
15 | association
whose declaration is recorded on or after | ||||||
16 | August 10, 1990 is not elected by
the unit owners or the | ||||||
17 | members of the underlying condominium association
board of | ||||||
18 | managers at the time established in subdivision (f)(2), the
| ||||||
19 | developer shall continue in office for a period of 30 days, | ||||||
20 | whereupon
written notice of his resignation shall be sent | ||||||
21 | to all of the unit owners
or members of the underlying | ||||||
22 | condominium board of managers entitled to vote
at an | ||||||
23 | election for members of the board of directors.
| ||||||
24 | (4) Within 60 days following the election of a majority | ||||||
25 | of the board
of directors, other than the developer, by | ||||||
26 | unit owners, the developer shall
deliver to the board of |
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| |||||||
1 | directors:
| ||||||
2 | (i) All original documents as recorded or filed | ||||||
3 | pertaining to the
property, its administration, and | ||||||
4 | the association, such as the declaration,
articles of | ||||||
5 | incorporation, other instruments, annual reports, | ||||||
6 | minutes,
rules and regulations, and contracts, leases, | ||||||
7 | or other
agreements entered into by the association. If | ||||||
8 | any original documents are
unavailable, a copy may be | ||||||
9 | provided if certified by affidavit of the
developer, or | ||||||
10 | an officer or agent of the developer, as being a | ||||||
11 | complete
copy of the actual document recorded or filed.
| ||||||
12 | (ii) A detailed accounting by the developer, | ||||||
13 | setting forth the
source and nature of receipts and | ||||||
14 | expenditures in connection with the
management, | ||||||
15 | maintenance and operation of the property, copies
of | ||||||
16 | all insurance policies, and a list of any loans or | ||||||
17 | advances to the
association which are outstanding.
| ||||||
18 | (iii) Association funds, which shall have been at | ||||||
19 | all times
segregated from any other moneys of the | ||||||
20 | developer.
| ||||||
21 | (iv) A schedule of all real or personal property, | ||||||
22 | equipment and
fixtures belonging to the association, | ||||||
23 | including documents transferring the
property, | ||||||
24 | warranties, if any, for all real and personal property | ||||||
25 | and
equipment, deeds, title insurance policies, and | ||||||
26 | all tax bills.
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1 | (v) A list of all litigation, administrative | ||||||
2 | action and arbitrations
involving the association, any | ||||||
3 | notices of governmental bodies involving
actions taken | ||||||
4 | or which may be taken concerning the association, | ||||||
5 | engineering and
architectural drawings and | ||||||
6 | specifications as approved by any governmental
| ||||||
7 | authority, all other documents filed with any other | ||||||
8 | governmental authority,
all governmental certificates, | ||||||
9 | correspondence involving enforcement of any
| ||||||
10 | association requirements, copies of any documents | ||||||
11 | relating to disputes
involving unit owners, and | ||||||
12 | originals of all documents relating to
everything | ||||||
13 | listed in this subparagraph.
| ||||||
14 | (vi) If the developer fails to fully comply with | ||||||
15 | this paragraph (4)
within
the 60 days
provided and | ||||||
16 | fails to fully comply within 10 days of written demand | ||||||
17 | mailed by
registered
or certified mail to his or her | ||||||
18 | last known address, the board may bring an
action to
| ||||||
19 | compel compliance with this paragraph (4).
If the court | ||||||
20 | finds that any of the
required
deliveries were not made | ||||||
21 | within the required period, the board shall be
entitled | ||||||
22 | to recover
its reasonable attorneys' fees and costs | ||||||
23 | incurred from and after the date of
expiration of
the | ||||||
24 | 10 day demand.
| ||||||
25 | (5) With respect to any master association whose | ||||||
26 | declaration is
recorded on or after August 10, 1990, any |
| |||||||
| |||||||
1 | contract, lease, or other
agreement made prior to the | ||||||
2 | election of a majority of the board of
directors other than | ||||||
3 | the developer by or on behalf of unit owners or
underlying | ||||||
4 | condominium associations, the association or the board of
| ||||||
5 | directors, which extends for a period of more than 2 years | ||||||
6 | from the
recording of the declaration, shall be subject to | ||||||
7 | cancellation by more than
1/2 of the votes of the unit | ||||||
8 | owners, other than the developer, cast at a
special meeting | ||||||
9 | of members called for that purpose during a period of 90
| ||||||
10 | days prior to the expiration of the 2 year period if the | ||||||
11 | board of managers
is elected by the unit owners, otherwise | ||||||
12 | by more than 1/2 of the underlying
condominium board of | ||||||
13 | managers. At least 60 days prior to the expiration of
the 2 | ||||||
14 | year period, the board of directors, or, if the board is | ||||||
15 | still under
developer control, then the board of managers | ||||||
16 | or the developer shall send
notice to every unit owner or | ||||||
17 | underlying condominium board of managers,
notifying them | ||||||
18 | of this provision, of what contracts, leases and other
| ||||||
19 | agreements are affected, and of the procedure for calling a | ||||||
20 | meeting of the
unit owners or for action by the underlying | ||||||
21 | condominium board of managers
for the purpose of acting to | ||||||
22 | terminate such contracts, leases or other
agreements. | ||||||
23 | During the 90 day period the other party to the contract,
| ||||||
24 | lease, or other agreement shall also have the right of | ||||||
25 | cancellation.
| ||||||
26 | (6) The statute of limitations for any actions in law |
| |||||||
| |||||||
1 | or equity which
the master association may bring shall not | ||||||
2 | begin to run until the unit
owners or underlying | ||||||
3 | condominium board of managers have elected a majority
of | ||||||
4 | the members of the board of directors.
| ||||||
5 | (g) In the event of any resale of a unit in a master | ||||||
6 | association by a unit
owner other than the developer, the owner | ||||||
7 | shall obtain from
the board of directors and shall make | ||||||
8 | available for inspection to the
prospective purchaser, upon | ||||||
9 | demand, the following:
| ||||||
10 | (1) A copy of the declaration, other instruments and | ||||||
11 | any rules and
regulations.
| ||||||
12 | (2) A statement of any liens, including a statement of | ||||||
13 | the account of
the unit setting forth the amounts of unpaid | ||||||
14 | assessments and other charges
due and owing.
| ||||||
15 | (3) A statement of any capital expenditures | ||||||
16 | anticipated by the
association within the current or | ||||||
17 | succeeding 2 fiscal years.
| ||||||
18 | (4) A statement of the status and amount of any reserve | ||||||
19 | for
replacement fund and any portion of such fund earmarked | ||||||
20 | for any specified
project by the board of directors.
| ||||||
21 | (5) A copy of the statement of financial condition of | ||||||
22 | the association
for the last fiscal year for which such a | ||||||
23 | statement is available.
| ||||||
24 | (6) A statement of the status of any pending suits or | ||||||
25 | judgments in which
the association is a party.
| ||||||
26 | (7) A statement setting forth what insurance coverage |
| |||||||
| |||||||
1 | is provided for
all unit owners by the association.
| ||||||
2 | (8) A statement that any improvements or alterations | ||||||
3 | made to the unit,
or any part of the common areas assigned | ||||||
4 | thereto, by the prior unit owner
are in good faith believed | ||||||
5 | to be in compliance with the declaration of the
master | ||||||
6 | association.
| ||||||
7 | The principal officer of the unit owner's association or | ||||||
8 | such
other officer as is specifically designated shall furnish | ||||||
9 | the above
information when requested to do so in writing, | ||||||
10 | within
30 days of receiving the request.
| ||||||
11 | A reasonable fee covering the direct out-of-pocket cost of | ||||||
12 | copying
and providing such information may be charged
by the | ||||||
13 | association or its board of directors to the unit
seller for | ||||||
14 | providing the information.
| ||||||
15 | (g-1) The purchaser of a unit of a common interest | ||||||
16 | community at a judicial foreclosure sale, other than a | ||||||
17 | mortgagee, who takes possession of a unit of a common interest | ||||||
18 | community pursuant to a court order or a purchaser who acquires | ||||||
19 | title from a mortgagee shall have the duty to pay the | ||||||
20 | proportionate share, if any, of the common expenses for the | ||||||
21 | unit that would have become due in the absence of any | ||||||
22 | assessment acceleration during the 6 months immediately | ||||||
23 | preceding institution of an action to enforce the collection of | ||||||
24 | assessments, and that remain unpaid by the owner during whose | ||||||
25 | possession the assessments accrued. If the outstanding | ||||||
26 | assessments are paid at any time during any action to enforce |
| |||||||
| |||||||
1 | the collection of assessments, the purchaser shall have no | ||||||
2 | obligation to pay any assessments that accrued before he or she | ||||||
3 | acquired title. The notice of sale of a unit of a common | ||||||
4 | interest community under subsection (c) of Section 15-1507 of | ||||||
5 | the Code of Civil Procedure shall state that the purchaser of | ||||||
6 | the unit other than a mortgagee shall pay the assessments | ||||||
7 | required by this subsection (g-1).
| ||||||
8 | (h) Errors and omissions.
| ||||||
9 | (1) If there is an omission or error in the declaration | ||||||
10 | or other
instrument of the master association, the master | ||||||
11 | association may correct
the error or omission by an | ||||||
12 | amendment to the declaration or other
instrument, as may be | ||||||
13 | required to conform it to this Act, to any other
applicable | ||||||
14 | statute, or to the declaration. The amendment shall be | ||||||
15 | adopted
by vote of two-thirds of the members of the board | ||||||
16 | of directors or by a
majority vote of the unit owners at a | ||||||
17 | meeting called for that purpose,
unless the Act or the | ||||||
18 | declaration of the master association specifically
| ||||||
19 | provides for greater percentages or different procedures.
| ||||||
20 | (2) If, through a scrivener's error, a unit has not | ||||||
21 | been
designated as owning an appropriate undivided share of | ||||||
22 | the common areas
or does not bear an appropriate share of | ||||||
23 | the common expenses, or if
all of the common expenses or | ||||||
24 | all of the common elements in
the condominium have not been | ||||||
25 | distributed in the declaration, so that the
sum total of | ||||||
26 | the shares of common areas which have been distributed or |
| |||||||
| |||||||
1 | the
sum total of the shares of the common expenses fail to | ||||||
2 | equal 100%, or if it
appears that more than 100% of the | ||||||
3 | common elements or common expenses have
been distributed, | ||||||
4 | the error may be corrected by operation of law by filing
an | ||||||
5 | amendment to the declaration, approved by vote of | ||||||
6 | two-thirds of the
members of the board of directors or a | ||||||
7 | majority vote of the unit owners at
a meeting called for | ||||||
8 | that purpose, which proportionately
adjusts all percentage | ||||||
9 | interests so that the total is equal to 100%,
unless the | ||||||
10 | declaration specifically provides for a different | ||||||
11 | procedure or
different percentage vote by the owners of the | ||||||
12 | units and the owners of
mortgages thereon affected by | ||||||
13 | modification being made in the undivided
interest in the | ||||||
14 | common areas, the number of votes in the unit owners
| ||||||
15 | association or the liability for common expenses | ||||||
16 | appertaining to the unit.
| ||||||
17 | (3) If an omission or error or a scrivener's error in | ||||||
18 | the
declaration or other instrument is corrected by vote of | ||||||
19 | two-thirds of
the members of the board of directors | ||||||
20 | pursuant to the authority established
in subdivisions | ||||||
21 | (h)(1) or (h)(2) of this Section, the board, upon
written | ||||||
22 | petition by unit owners with 20% of the votes of the | ||||||
23 | association or
resolutions adopted by the board of managers | ||||||
24 | or board of directors of the
condominium and common | ||||||
25 | interest community associations which select 20% of
the | ||||||
26 | members of the board of directors of the master |
| |||||||
| |||||||
1 | association, whichever
is applicable, received within 30 | ||||||
2 | days of the board action, shall call a
meeting of the unit | ||||||
3 | owners or the boards of the condominium and common
interest | ||||||
4 | community associations which select members of the board of
| ||||||
5 | directors of the master association within 30 days of the | ||||||
6 | filing of the
petition or receipt of the condominium and | ||||||
7 | common interest community
association resolution to | ||||||
8 | consider the board action. Unless a majority of
the votes | ||||||
9 | of the unit owners of the association are cast at the | ||||||
10 | meeting to
reject the action, or board of managers or board | ||||||
11 | of directors of
condominium and common interest community | ||||||
12 | associations which select over
50% of the members of the | ||||||
13 | board of the master association adopt resolutions
prior to | ||||||
14 | the meeting rejecting the action of the board of directors | ||||||
15 | of the
master association, it is ratified whether or not a | ||||||
16 | quorum is present.
| ||||||
17 | (4) The procedures for amendments set forth in this | ||||||
18 | subsection (h)
cannot be used if such an amendment would | ||||||
19 | materially or adversely affect
property rights of the unit | ||||||
20 | owners unless the affected unit owners consent
in writing. | ||||||
21 | This Section does not restrict the powers of the | ||||||
22 | association
to otherwise amend the declaration, bylaws, or | ||||||
23 | other condominium
instruments, but authorizes a simple | ||||||
24 | process of amendment requiring a
lesser vote for the | ||||||
25 | purpose of correcting defects, errors, or omissions
when | ||||||
26 | the property rights of the unit owners are not materially |
| |||||||
| |||||||
1 | or adversely
affected.
| ||||||
2 | (5) If there is an omission or error in the declaration | ||||||
3 | or other
instruments that may not be corrected by an | ||||||
4 | amendment procedure
set forth in subdivision (h)(1) or | ||||||
5 | (h)(2) of this Section, then
the circuit court in the | ||||||
6 | county in which the master
association is located shall | ||||||
7 | have jurisdiction to hear a petition of one or
more of the | ||||||
8 | unit owners thereon or of the association, to correct the | ||||||
9 | error
or omission, and the action may be a class action. | ||||||
10 | The court may require
that one or more methods of | ||||||
11 | correcting the error or omission be submitted
to the unit | ||||||
12 | owners to determine the most acceptable correction. All | ||||||
13 | unit
owners in the association must be joined as parties to | ||||||
14 | the action. Service
of process on owners may be by | ||||||
15 | publication, but the plaintiff shall furnish
all unit | ||||||
16 | owners not personally served with process with copies of | ||||||
17 | the
petition and final judgment of the court by certified | ||||||
18 | mail, return receipt
requested, at their last known | ||||||
19 | address.
| ||||||
20 | (6) Nothing contained in this Section shall be | ||||||
21 | construed to invalidate
any provision of a declaration | ||||||
22 | authorizing the developer to amend
an instrument prior to | ||||||
23 | the latest date on which the initial
membership meeting of | ||||||
24 | the unit owners must be held, whether or not it has
| ||||||
25 | actually been held, to bring the instrument into compliance | ||||||
26 | with the legal
requirements of the Federal National |
| |||||||
| |||||||
1 | Mortgage Association, the Federal Home
Loan Mortgage | ||||||
2 | Corporation, the Federal Housing Administration, the | ||||||
3 | United
States Veterans Administration or their respective | ||||||
4 | successors and assigns.
| ||||||
5 | (i) The provisions of subsections (c) through (h) are | ||||||
6 | applicable
to all declarations, other condominium instruments, | ||||||
7 | and other
duly recorded covenants establishing the powers and | ||||||
8 | duties of the master
association recorded under this Act. Any | ||||||
9 | portion of a declaration,
other condominium instrument, or | ||||||
10 | other duly recorded covenant establishing
the powers and duties | ||||||
11 | of a master association which contains provisions
contrary to | ||||||
12 | the provisions of subsection (c) through (h) shall be void as
| ||||||
13 | against public policy and ineffective. Any declaration, other | ||||||
14 | condominium
instrument, or other duly recorded covenant | ||||||
15 | establishing the powers and
duties of the master association | ||||||
16 | which fails to contain the provisions
required by subsections | ||||||
17 | (c) through (h) shall be deemed to incorporate such
provisions | ||||||
18 | by operation of law.
| ||||||
19 | (j) The provisions of subsections (c) through (h) are | ||||||
20 | applicable to
all common interest community associations and | ||||||
21 | their unit owners for common
interest community associations | ||||||
22 | which are subject to the provisions of Section
9-102(a)(8) of | ||||||
23 | the Code of Civil Procedure. For purposes of this
subsection, | ||||||
24 | the terms "common interest community" and "unit owners"
shall | ||||||
25 | have the same meaning as set forth in Section 9-102(c) of the | ||||||
26 | Code of
Civil Procedure.
|
| |||||||
| |||||||
1 | (Source: P.A. 94-384, eff. 1-1-06.)
| ||||||
2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
|