Illinois condo resale disclosure (Section 22.1)

The Section 22.1 package is a financial x-ray of the association. Beyond the governing documents, it has to spell out any liens and unpaid assessments on the unit, the capital expenditures the board expects in the current and next two fiscal years, the reserve fund status and amount, the most recent financial statement, any pending suits or judgments, and the insurance coverage. Read together, those items tell you whether a special assessment is likely and whether the association is financially healthy.

The package also has to state that the prior owner's improvements or alterations to the unit are believed in good faith to comply with the condominium instruments, and give the name and mailing address of the officer who receives notices. Starting January 1, 2027, it must include the association's collection policy as well.

The board has 10 business days to deliver the package after a written request. The seller pays, and the fee is limited to the direct cost of providing and copying the information, up to $375. That $375 figure moves each year with the consumer price index, so a fee a little above $375 can be lawful. Rush service finished within 72 hours can add $100. A board that charges well past the adjusted cap, or takes longer than 10 business days, is not following the statute.

Section 22.1 covers condominiums. If you are buying in a townhome or single-family HOA governed by the Common Interest Community Association Act, the parallel rule is 765 ILCS 160/1-35(d). On a resale, the board has to make seven items available to you on demand: the declaration, other instruments and rules; a statement of liens and unpaid assessments; anticipated capital expenditures for the current and next two fiscal years; reserve fund status; the last fiscal year financial statement; pending suits or judgments; and the insurance the association carries on common property.

The deadline is longer, 30 days after a written request. The fee is a reasonable charge to the seller for the direct cost of copying and providing the information. The CICAA sets no dollar cap and no rush fee. One exception: a small association organized as a not-for-profit corporation, with 10 units or less or annual budgeted assessments of $100,000 or less, is exempt from the Act unless it has elected to be covered.

When the package arrives, focus on:

• The statement of liens and unpaid assessments on the unit you are buying.
• Anticipated capital expenditures for the current and next two fiscal years.
• The reserve fund balance against those upcoming expenditures.
• Any pending lawsuits or judgments, and the insurance coverage statement.

The 22.1 package is where a looming special assessment or a thin reserve shows up before you are committed. It is the document a careful buyer reads line by line, because Illinois does not cap assessment increases and the reserves are the early warning.

An HOA Notes brief reads the 22.1 package end to end, flags a thin reserve, an anticipated capital expenditure, or a pending lawsuit, and cites the page behind each finding so you know the financial picture before you close.

765 ILCS 605/22.1 (Resale disclosure fee cap (condos only)). Upon resale of a condominium unit, the seller must obtain the section 22.1 disclosure package from the board and make it available to the buyer on demand; the board must provide it within 10 business days of a written request; the fee, charged to the seller, may not exceed $375 as adjusted each year for CPI-U, plus $100 for rush service completed within 72 hours; the package includes the declaration, bylaws and rules, a statement of liens and unpaid assessments, capital expenditures anticipated in the current or next 2 fiscal years, reserve fund status, the last fiscal year financial statement, pending suits or judgments, insurance coverage, a statement on the prior owner's alterations, and the principal officer's contact; under a separate section, 765 ILCS 605/22.2, a condominium association may not use a right of refusal, option to purchase, or right to disapprove a sale because the buyer's financing is FHA-guaranteed or for a discriminatory or otherwise unlawful purpose. The association may charge the seller up to the CPI-adjusted $375 cap for the package and $100 more for 72-hour rush service; non-condo associations under the CICAA have a parallel duty in 765 ILCS 160/1-35(d): the same core items within 30 days of a written request, for a reasonable fee covering direct out-of-pocket cost; that section sets no dollar cap and no rush fee, and small associations exempt under 160/1-75 are not covered.

When you read the disclosure packet, watch for a standard resale disclosure fee above the CPI-adjusted $375 cap, or a rush fee above $100, the board shall have 30 or more business days to provide the resale disclosure package, and the board may refuse or disapprove a sale because the buyer uses FHA financing. HOA Notes flags each of these against the statute and tells you which restrictions are actually enforceable.