Effort to reform Condo Law gets backing from Illinois Senate

Illinois Senate Republican Leader Christine Radogno meets with a delegation from the Illinois Association of REALTORS® on Tuesday, April 1, 2014.

SB2664, which aims to reform provisions in the state’s Condominium Property Act that could result in surprise costs at the closing table, passed the Senate by a 55-1 vote on Tuesday, April 8, 2014.

The measure now moves to the House for consideration.

The bill was backed by the Illinois Association of REALTORS® and the Illinois State Bar Association. The bill seeks more timely notice for buyers of foreclosed condos so they will know all the costs they will owe a closing. As the law is written, buyers of foreclosed condominiums must pay six months of regular assessments, past due assessments unlimited attorney’s fees and other fines, fees and costs.

In other words, a consumer could show up thinking they were paying one amount, only to find out they had to come up with thousands more. In some cases, that can scuttle deals and contribute to vacancy rates in condo properties.

The new language would allow associations to collect unpaid costs and and related legal fees over a nine-month period, but limits the total recoverable amount to the equivalent of nine months of regular monthly assessments.

REALTORS® were in favor of the change because it would speed the sale of foreclosed condos, protect buyers from unpleasant surprises that could kill deals and would allow condo associations to recoup some losses.

The Illinois Association of REALTORS’® membership lobbied at the state Capitol last week on the bill.

Senate sponsors on the bill were: Michael E. Hastings,  Pamela J. AlthoffThomas Cullerton  and Patricia Van Pelt.

 

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About Jon Broadbooks

Jon Broadbooks is Director of Communications for the Illinois Association of REALTORS®. He supervises and carries out the implementation of the communications programs for the Association. He directs and supervises the Communications staff. He is responsible for coordinating and implementing the public relations and media relations efforts for the Association and acts as spokesperson and liaison to the statewide news media. He serves as editor of online and print content for IAR communications including the Illinois REALTOR® magazine and e-newsletters. He conducts IAR spokesperson training seminars and oversees the operation of website development for the Association.

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