When is the best time to sell a home in Illinois? The housing market is usually the most active from late spring through the summer. Buyers tend to start to house-hunt in the spring, and homes listed in the spring tend to sell for higher prices and go under contract faster. Once you have a signed contract, you will have to provide some sales documents that are required under the Illinois Condominium Property Act.
Andrea Bodenstein, our Director of Operations, can assist you with this process. Andrea has been with Advantage Management for 13+ years and is one of its longest-tenured employees. Andrea is responsible for providing the required 22.1 disclosures, condominium documents, and paid assessment letters for the sales in all of the properties that we manage.
While there are many nuances and legalities involved in both the sale and refinancing of homes in Illinois, there is also a lot of association information that is required to be disclosed to the buyer of the home. Along with the documents that are required to sell or refinance your homes, there are a few questions that are frequently asked. Some of Andrea’s most frequently asked questions are:
Q: What is a 22.1 Disclosure, and why do I need to provide one to my buyer?
A: 22.1 Disclosures are a part of the Illinois Condominium Property Act and are required to be provided for any sale. This document is generally requested by the seller’s attorney and reviewed by the buyer’s attorney. This document is important because it provides detailed information about the individual unit and the Association’s health and financial stability. Buyers want this information to make an informed and educated decision about the investment they are about to make. Any misrepresentation of this knowledge can lead to severe legal repercussions for all the people involved in the sale. To comply with the Illinois Condominium Property Act, the 22.1 disclosure must include the following:
- Association Declarations and By-laws, any Condominium rules and regulations, approved meeting minutes, current annual budget, the Association’s reserve balance, etc.
- Any liens in place against the Association, the Board of Directors, or the individual Homeowner
- The Association’s capital expenditures, as well as their financial status for the current fiscal year
- Any funds in the Reserve Account that are earmarked for specific projects or expenses
- Any lawsuits or pending litigation that the Association is involved in.
- Information on the building’s common area insurance or the Master Insurance policy for the Association.
Q: What is a Paid Assessment Letter, and why do I need one?
A: A Paid Assessment Letter (PAL) is a letter, is provided by the management company that the title company requires for your closing. The PAL states the seller has paid both the current monthly assessment as well as any other balance that may be due and is transferring the unit to the new owner with a zero balance. If the seller does have a balance due, that balance can be included on the PAL and paid at closing. The title company will show that these payments have been made on the final settlement statement.
Q: Where can I get a copy of my Association’s governing documents and/or the board meeting minutes?
A: The first place to start is on our Advantage Management website at Advantage-Management.com. Please go to the top menu and click on current homeowners. The box on the right will allow you to log into your account where your association documents are stored. From there, you can download the documents needed. If you need your log-in information, please contact your property manager.
Q: How do I start the process and obtain my 22.1 or paid assessment letter?
A: Please have your attorney go to Advantange-Managenent.com. Go to the top menu and click current homeowners, and the middlebox will direct you to place the order for your sales documents on Homewise Docs.
Q: Are there fees for obtaining documents?
A: Just like with your lender or attorney, there are fees for these documents. You might ask why there are fees and shouldn’t the fees be covered by the Association. Providing the sales documents for your sale or refinance is a service that we are providing to an individual homeowner that is outside of our contract with the Association.
Q: How do I get in touch with Andrea for additional questions?
A: Andrea can be reached during business hours at 312-521-5965 or at ABodenstein@Advantage-Management.com