Supreme Court Addresses Fees for Condominium Disclosure Documents
Case Study: Greenswag v. Lieberman Management Services
2026 IL 132101
In this matter, the Illinois Supreme Court considered whether a condominium property management company violated the Illinois Consumer Fraud and Deceptive Business Practices Act by charging an allegedly excessive fee for disclosure documents required under Section 22.1 of the Illinois Condominium Property Act.
A condominium seller was charged $470 by Lieberman Management Services to obtain the required disclosure documents. The seller argued that the fee was unreasonable because the documents were already maintained electronically, their preparation had effectively been paid for through association fees, and sellers had no alternative source for obtaining them.
The Illinois Supreme Court affirmed the dismissal of the lawsuit, holding that charging a high fee, without additional evidence of unfair or oppressive conduct, was insufficient to establish a violation of the Consumer Fraud Act. The court emphasized that Section 22.1 of the Illinois Condominium Property Act primarily protects condominium purchasers rather than sellers and that the management company’s timely delivery of the documents fulfilled the statute’s underlying purpose.
TAKEAWAYS:
- High fees alone do not establish consumer fraud. A plaintiff must allege additional circumstances demonstrating unfairness, such as oppressive conduct, a violation of public policy, or substantial consumer injury.
- Section 22.1 of the Illinois Condominium Property Act is intended to ensure prospective condominium buyers receive important information before purchasing a unit. Although sellers are responsible for obtaining the documents, the statute does not provide sellers with an implied private right of action against management companies for allegedly excessive disclosure fees.
- Property management companies may charge reasonable fees for disclosure documents. The court recognized that compiling and delivering condominium disclosure documents provides value, even when the documents are maintained electronically. The court also noted that the Illinois Condominium Property Act now limits standard disclosure fees to $375, with an additional $100 permitted for qualifying rush services.
About the writer: Prior to joining Illinois REALTORS® in 2022, Victoria (Vicki) Munson was an attorney in private practice focusing on real estate and estate planning matters. She enjoyed assisting buyers and sellers in bringing their transactions to the closing table. Victoria earned her bachelor’s degree from Western Illinois University and her Juris Doctor from The John Marshall Law School.
