Q: I reside in a high-rise condominium complex. Our condominium association’s declaration and bylaws are over 30 years old and there is a $5,000 spending limit in the bylaws unless a majority of unit owners approve the expenditure. Are there any exceptions to this provision? Our property manager says Illinois law overrides spending limits in a condominium declaration.
A: Spending limits contained in a condominium declaration and bylaws are valid, however, Section 18.4(a) of the Condominium Act does contain an exception which expressly states that such spending limits “shall not be applicable to expenditures for repair, replacement, or restoration of existing portions of the common elements.”
Thus, spending limits are valid relating to expenditures for something that does not currently exist as part of the common elements, however, the spending limit does not apply to maintenance, repair and replacement of existing common elements.
Q: I am a unit owner in a condominium association. A unit in my hallway installed a video recording doorbell on her door. I discussed my concerns with the property manager and it was acknowledged that unit owners cannot install video recording doorbells on the doors or door frames without board approval. However, the board has not yet enforced the removal of the video recording doorbell. What can I do?
A: Condominium declarations state that unit owners cannot modify limited common elements without board approval. Doors and door frames are considered a limited common element. Most boards in a condominium association will not allow video recording doorbells to be installed for aesthetic reasons, but the board can deny such requests based upon the objections other unit owners have to being recorded in their hallways. The board should take remedial action to have the video recording doorbell removed if it was installed without board permission.
As far as individual owner recourse, objecting owners should submit written complaints to the management company/board for violation of the association’s governing documents and demand the board take remedial action. A board that refuses to enforce its governing documents may be subject to breach of fiduciary duty claims by the objecting owners.
Q: The board of directors in my Chicago condominium association recently approved retaining a real estate agent to market our property to procure purchase offers to sell the condominium building. I question the legality of this board action because the board has not yet obtained 85% unit approval to sell the building. Am I correct the board action is improper without 85% approval?
A: While 85% unit owner approval is required for a valid purchase agreement to sell all the units and common elements in a Chicago condominium association per Section 15 of the Condominium Act, as supplemented by the Chicago Condominium Ordinance, there is nothing in the law that prevents a condominium board from retaining a real estate agent to obtain purchase offers, or other due diligence related to a possible bulk sale. In fact, a board has to do basic due diligence to present details to the unit owners for unit owners to make an informed decision on whether a bulk purchase offer is acceptable to them. Similarly, condominium boards may, but are not required, to retain an appraiser to appraise the building to know whether purchase offers received are market price.
Please note that while the city of Chicago requires 85% unit owner approval for a bulk sale of a condominium association, the rest of the state of Illinois is governed solely by Section 15 of the Condominium Act, which only requires 75% unit owner approval (unless a local municipality where the property is located increased the owner approval threshold).
Got a question for the Condo Adviser? Email ctc-realestate@chicagotribune.com.
Join our Chicago Dream Homes Facebook group for more luxury listings and real estate news.
