Illinois HOA and Condo Disclosure Requirements

The Illinois Landscape

Illinois has a large and diverse HOA and condo market. Chicago alone has thousands of condo associations — from Gold Coast high-rises to Lincoln Park mid-rises to South Loop conversions. The suburbs add thousands more planned communities and townhome associations.

The primary governing statute for condos is the Illinois Condominium Property Act (765 ILCS 605), which has been in effect since 1963 and has been amended numerous times. For non-condo HOAs, the Common Interest Community Association Act (765 ILCS 160) provides the regulatory framework.

Both statutes have resale disclosure requirements, but the condo statute is more specific and more commonly referenced because of the sheer volume of condo transactions in the Chicago metro.

Condo Resale Certificate Requirements

Under Section 22.1 of the Illinois Condominium Property Act, the condo association must provide a resale certificate when a unit is being sold. The certificate must include:

• •The amount of any outstanding assessments (regular and special) owed by the seller
• •A statement of the status of any pending suits or judgments involving the association
• •A statement of the current monthly or periodic assessment amount
• •A statement of any capital expenditures anticipated by the board within the current or next fiscal year
• •A copy of the declaration, bylaws, rules, and regulations (or a statement of where they can be obtained)
• •A statement of the association's insurance coverage
• •The association's current budget
• •A statement of any reserve fund balance
• •Information about the association's right of first refusal or other transfer restrictions, if any
• •Any other information required by the declaration

Delivery timeline: The association has 30 days to provide the resale certificate after receiving a written request. This is notably longer than the 10-14 day timelines in states like Florida, Texas, or Virginia.

In practice, most Chicago-area management companies deliver faster than 30 days — typically within 10-15 business days. But the 30-day statutory window means you can't legally force faster delivery unless you negotiate rush terms with the management company.

Common Interest Community Act Requirements

For non-condo HOAs (planned communities, townhome associations), the Common Interest Community Association Act provides similar but distinct disclosure requirements.

The seller of a unit in a common interest community must provide the buyer with:

• •A copy of the declaration, bylaws, and rules
• •A statement of any outstanding obligations against the unit
• •A statement of the assessment amount and payment schedule
• •The current budget
• •Financial information, including reserve balances
• •Insurance coverage summary
• •Pending litigation disclosure

The delivery timeline under the CICAA is also 30 days, consistent with the condo statute.

The Chicago Market Specifics

Chicago's condo market has characteristics that affect the document ordering process:

High-rise buildings. Large condo associations (100+ units) in downtown Chicago typically have professional management and detailed financial records. Document packages are comprehensive but can be lengthy — 100-300 pages is normal for a full resale package in a high-rise.

Vintage buildings. Chicago has many older buildings (pre-1980) that were converted to condominiums. These conversions sometimes have incomplete original documentation. Declaration amendments may have accumulated over decades, making the governing document stack complex.

Four-plus-ones and six-flats. Smaller condo buildings (4-12 units) are common in Chicago neighborhoods. These are more likely to be self-managed, which means slower document delivery and less standardized financial reporting.

Deconversions. A trend in recent years has been condo deconversions — where a majority of owners vote to sell the building to a developer who converts it back to rental apartments. If a building is in the process of or considering deconversion, this materially affects a buyer's decision. Look for deconversion discussions in the meeting minutes.

Cost Expectations

Illinois doesn't cap fees for resale certificates. Costs in the Chicago area:

• •Resale certificate: $150-$300
• •Full document package (governing docs + financials + certificate): $250-$500
• •Rush fee (7-10 day delivery): $100-$200 additional
• •Condo questionnaire (for lenders): $200-$400
• •Assessment letter only: $75-$150

Suburban communities outside Chicago tend to have slightly lower fees, but the range is similar.

The Right of First Refusal

One Illinois-specific issue that catches out-of-state buyers off guard: many Illinois condo declarations include a right of first refusal (ROFR).

This gives the association the right to match the purchase terms and buy the unit itself, effectively blocking the sale. The board has a specified number of days (usually 30) to exercise or waive the ROFR.

In practice, associations rarely exercise the right of first refusal — it's mostly a formality. But the process takes time. If the declaration includes an ROFR, the board must receive notice of the sale, hold a meeting (or circulate a vote), and formally waive the right before the sale can proceed.

Factor this into your timeline. The ROFR process can add 2-4 weeks to the closing timeline, and it happens in parallel with document ordering.

Board Approval and Transfer Requirements

Some Chicago condo associations also require board approval of buyers before a transfer. This is separate from the ROFR and involves:

• •A buyer application and interview
• •Financial qualification (income, credit)
• •Background check

Board approval processes are more common in co-ops (which also exist in Illinois, particularly on the North Shore), but some condo associations have adopted similar requirements. If board approval is required, build it into the timeline — it can take 2-4 weeks.

Common Issues in Illinois Closings

The 30-day statutory timeline. This is the biggest challenge. In a 30-day closing, the association technically has the entire escrow period to deliver documents. Most management companies deliver faster, but there's no legal remedy if they take the full 30 days.

Solution: Order documents immediately upon contract execution. If possible, ask the seller or listing agent to order the resale certificate before the property even goes under contract.

Self-managed small buildings. Chicago's many small condo buildings often lack professional management. Getting documents from a building where the "management" is a volunteer owner-board-member can be challenging.

Multiple assessments. Some Chicago condos have both a regular monthly assessment and a "special assessment" that's been structured as a recurring charge (essentially, an ongoing payment plan for a past capital project). Make sure the buyer understands the total monthly obligation.

Assessment increases. Chicago property taxes are volatile, and since condo associations pay property taxes on common areas, assessment increases tied to tax hikes are common. Check the budget for tax line items and whether the current assessment covers the actual tax liability.

Practical Tips

1. 1.Order on day one. The 30-day statutory window is your enemy on tight timelines. Don't waste a single day.
2. 2.Ask about ROFR and board approval. These processes run in parallel with document ordering and can extend your timeline.
3. 3.Request current financials, not just the budget. The budget tells you what they planned to spend. The financial statement tells you what they actually spent.
4. 4.Review the assessment history. Check whether assessments have increased significantly in recent years — this is often a sign of financial stress.
5. 5.Check for deconversion activity. If the building has had any deconversion offers or votes, it should appear in the meeting minutes.

Illinois's 30-day statutory timeline and Chicago's complex condo market make early action essential. The closers who do well in this market are the ones who treat HOA documents as a day-one priority, not a week-three afterthought.