(This article is the second in a series regarding new construction issues.) As I mentioned in December's column, the sale of “new construction” properties has different requirements from that of resale properties. It is important to remember that “new construction” refers both to conversions of properties from a prior use, as well as to newly-built units for sale. This similar treatment is reflected in the Illinois Condominium Property Act, in which the disclosure requirements for new construction condominiums (Section 22) differ from those needed for resale units (Section 22.1). Under Section 22, a developer must give a prospective purchaser (a) a copy of the condominium declaration; (b) a copy of the association bylaws; (c) a projected operating budget, which should include those monthly fees, charges and other costs to the buyer; (d) a floor plan and street address of the unit to be sold (or, if unavailable, the street address of the project). Furthermore, if the unit is a conversion condominium, the developer must furnish (a) a statement of any special fees due from the buyer on or before closing, and the basis of such fees; (b) an information statement regarding repairs, maintenance, operation and upkeep for the last two years, set forth in a way that predicts individual units' responsibility therefore; and (c) a description of any budget reserves for capital expenditures, and an explanation for the basis of the same. Although these materials are available upon demand to buyers of new construction, attorneys for such buyers should make sure that review and approval of the same by their clients is included as a term of the contract between buyer and developer. In this way, failure by the developer to deliver this information equals noncompliance with the contract terms. It also affects the intent of the Condominium Act, which is to give condo buyers as much information as possible about the property at the beginning of the transaction, so that they might make an informed decision as to whether or not to purchase the unit. |
Here are 4 of "Junior High English Teacher Miss Reiser's 8 most abused words in the English language" starting with one of my personal pet peeves: 1. Over – is a preposition. Only in an airplane can you be over 3 million people. Chicago has more than three million people. 2. Myriad – means many. Your sister-in-law has myriad problems. Not a myriad of problems. (We wouldn't say she has "many of problems," we would say she has "many problems.") 3. Irregardless – is not a word (try looking it up or spellchecking, even the computer knows!). The word is regardless. 4. Snuck – is not correct. The past tense of sneak is sneaked (even though it sounds wrong). - Diane Forsythe, Brickton Mortgage |
