While most people put a lot of thought into where they want to live, they may not think about whether or not the building is up to code. No one enjoys having to go through paperwork, but in this case, it may save you in the long run.
In Illinois, buildings that are three stories or less and have fewer than 50 units are required by law to have a 22.1 disclosure.
What is a 22.1 disclosure? This document provides potential buyers with information about the condition of the building, including any defects. While some people may view the 22.1 disclosure as a hassle, it is a critical document. It can help potential buyers decide whether or not to purchase a unit in a particular building.
In some cases, the disclosure may reveal that the building is not up to code and that the buyer would be taking on a significant financial risk by purchasing a unit. The 22.1 HOA disclosure is a required document for Condominium Associations to provide to prospective buyers.
Read on to learn more about a 22.1 disclosure pertaining to condo associations in Illinois!
What is a 22.1 Disclosure?
A 22.1 disclosure is a document sellers must provide to prospective buyers of a unit in a condominium, common interest community, or other planned communities in Illinois.
This document must be provided by the seller of the unit and contain specific information about the property and the Homeowners Association (HOA) that governs it.
The 22.1 disclosure must include information on the following topics:
- A description of the property, including its physical address, square footage, and number of bedrooms and bathrooms
- The current monthly HOA assessment fee and any special assessments that have been or may be levied
- A description of the HOA’s documentation and governing documents, including the bylaws, articles of incorporation, and declaration of covenants, conditions, and restrictions
- A description of the HOA’s insurance coverage
- A description of the HOA’s budget, including information on reserves
- A description of the HOA’s amenities and facilities and any rules and regulations governing their use
- A description of the HOA’s architectural review process, if applicable
- A copy of the most recent HOA financial report
- A copy of the most recent HOA newsletter
- A list of any pending lawsuits against the HOA or any of its members
It is important to note that the seller is not required to provide any additional information about the HOA beyond the details contained in the 22.1 disclosure.
What is the Purpose of 22.1 Disclosure?
The purpose of the 22.1 disclosure is to provide potential condo buyers with information about the unit they are interested in purchasing and the building as a whole.
This information includes the monthly fee, special assessments, and rules and regulations. It also lists any known defects or problems with the unit or building.
The 22.1 disclosure is required by law in Illinois and must be provided to buyers before purchasing a condo unit.
Buyers need to review this information carefully to be aware of any potential issues that could arise after they purchase the unit.
If you are considering purchasing a condo unit in Illinois, be sure to ask for the 22.1 disclosure from the seller. This will help you make an informed decision about whether or not the unit is suitable for you. It will also let you know more about your financial responsibilities to the HOA, so that surprise fees don’t catch you off guard.
What are the Benefits of 22.1 Disclosure?
The benefits of 22.1 disclosure for a condo in Illinois are many and varied.
For one, it provides a way for potential buyers to learn about the financial health of the condo association. This is important because it can impact the resale value of the unit and the monthly fees that the buyer will have to pay.
Additionally, the disclosure can provide potential buyers with information about the association’s insurance coverage, which is vital to know in case of any future damages to the unit.
Finally, the disclosure can also give buyers an idea of the association’s rules and regulations, which can help them decide whether or not the condo is right for them as a community.
Are There Any Exemptions to 22.1 Disclosure?
There are a few exemptions to the 22.1 disclosure for condos in Illinois.
One exemption is for condos that are part of a larger development with its own HOA. In this case, the HOA would be responsible for providing the 22.1 disclosure to potential buyers.
Another exemption is for condos not yet built. If a condo is still in the planning or construction phase, the developer would be responsible for providing the 22.1 disclosure to potential buyers.
There is also an exemption for condos designated as historic landmarks. If the condo is owner-occupied, or if the condo association has fewer than 15 units, the association may be exempt from specific disclosure requirements. In this case, it’s better to contact a lawyer in advance so that they can help you through the decision-making process.
Additionally, if the condo association has been in existence for less than one year or if the developer of the condo project has not yet turned over control of the association to the unit owners, the association may be exempt from certain disclosure requirements.
Another exemption is for units leased to a tenant who has been occupying the unit for more than one year.
Additionally, there are exemptions for units under construction or renovation and units that are part of a common interest community that is not yet operational.
Be aware of any units that fall in the categories above, as you may be at a disadvantage when making your purchasing decision!
What Are The Penalties for Non-Disclosure?
If you are selling your condo in Illinois, state law requires that you provide the buyer with a disclosure report.
This report must include information about any known material defects with the unit. If you do not disclose these defects, you could be held liable for any damages that occur. Additionally, the buyer could void the sale, and you would be responsible for returning their deposit.
There are no specific penalties for failing to disclose a material defect in a condominium unit in Illinois. However, if the unit is sold, the new owner may bring a lawsuit against the previous owner for damages from the defect.
The court may order the previous owner to pay the new owner the cost of repairing the defect. They could also order the previous owner to pay the difference in value between the unit with the defect and a non-defective unit.
If the condo association finds out that the disclosure was not made, they can also levy fines against the unit owner. The amount of the penalty will depend on the condo association’s bylaws.
What Are Your Options?
As a prospective condo buyer in Illinois, you are entitled to receive a disclosure packet from the seller that includes information about the property, the association, and any outstanding issues that may affect your decision to purchase.
If you do not receive this disclosure packet, you have a few options.
You can request the disclosure packet from the seller. If the seller refuses to provide it, you can walk away from the deal.
You can also contact the Illinois Attorney General’s Office or the Illinois Department of Professional and Financial Regulation.
These agencies can investigate the seller and the property to look for any red flags that you should be aware of before moving forward with the purchase.
If you decide to purchase the condo without the disclosure packet or “as-is,” you do so at your own risk. You may not be aware of important information about the property that could affect your buying decision.
You also may not be able to hold the seller accountable for any issues that arise after closing.
Know Before You Buy!
The importance of a 22.1 disclosure on a condo in Illinois cannot be understated.
By providing this information to potential buyers, they can decide whether or not to purchase the unit. Not only is it the law, but it can also help you to avoid costly repairs and problems down the road.
Additionally, it helps to protect the buyer from purchasing without understanding all of the associated costs and risks.
If you are considering purchasing a condo in Illinois, be sure to ask for the disclosure statement so that you can review the association’s financial information.
Before Googling “What is a 22.1 disclosure,” contact us today to ensure that you get accurate information about this critical document.
