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.