There have been a number of changes in Illinois laws in 2015 that have impacted the management of condominium and common interest community associations. Below is a summary we have compiled in an attempt to keep our clients and the community aware of the implications of these legal updates.
Significant Changes in Illinois Case Law
1. 1010 Lake Shore Drive v. Deutsche Bank
- On August 12, 2014, the Illinois Appellate Court First District issued an opinion that clarifies when a lien created under Section 9(g)(1) of the Illinois Condominium Property Act is extinguished.
- Specifically, the Court held that a lien created under Section 9(g)(1) for unpaid assessments by a previous owner is not fully extinguished following a judicial foreclosure and sale until the purchaser makes a payment for assessments incurred after the sale.
- This ruling is significant insofar as it clarifies what has been a misunderstanding within the community association industry that a preexisting lien for unpaid assessments is extinguished automatically upon the sale of a foreclosed property.
2. Palm v. 2800 Lake Shore Drive Condominium Association
- On May 2, 2014, the Illinois Appellate Court First District issued an opinion that addressed a number of very important topics effecting the day to day operation of a condominium association and the functions of the board of director.
- Those important topics in which the Palm opinion gives guidance include the conducting of business, voting by e-mail and canvassing, emergency decision making, delegation of authority, and the handling of association finances, including reserves, operating surplus and shortages, amongst others.
3. Spanish Court Two Condominium Association v. Carlson
- The alleged failure to maintain common elements could not be raised as a defense to a forcible entry and detainer lawsuit because it was not germane, under 735 ILCS 5/9-106 (2008), since a unit owner’s liability for unpaid assessments was not contingent on the association’s performance, as the owner could not “avoid” the duty to pay the assessments, and the association could not refrain from enforcing that obligation
- Such a nullification defense would conflict with 765 ILCS 605/9.2 (2008), which was adopted to provide a quick method to collect assessments.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We have four office locations, serving hundreds of clients and thousands of communities throughout Illinois, Indiana, and Wisconsin. Our attorneys are also licensed in Arizona, Florida, and Missouri.
If we can assist your association in a legal matter, do not hesitate to contact KSN at 855-537-0550 or visit our website at www.ksnlaw.com.