Illinois General Assembly - Full Text of Public Act 094-1049
Illinois General Assembly

Previous General Assemblies

Public Act 094-1049




Public Act 094-1049
SB2570 Enrolled LRB094 18528 AJO 54463 b

    AN ACT concerning condominium property.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 2. The Code of Civil Procedure is amended by
changing Section 15-1507 as follows:
    (735 ILCS 5/15-1507)  (from Ch. 110, par. 15-1507)
    Sec. 15-1507. Judicial Sale.
    (a) In General. Except as provided in Sections 15-1402 and
15-1403, upon entry of a judgment of foreclosure, the real
estate which is the subject of the judgment shall be sold at a
judicial sale in accordance with this Section 15-1507.
    (b) Sale Procedures. Upon expiration of the reinstatement
period and the redemption period in accordance with subsection
(b) or (c) of Section 15-1603 or upon the entry of a judgment
of foreclosure after the waiver of all rights of redemption,
except as provided in subsection (g) of Section 15-1506, the
real estate shall be sold at a sale as provided in this
Article, on such terms and conditions as shall be specified by
the court in the judgment of foreclosure. A sale may be
conducted by any judge or sheriff.
    (c) Notice of Sale. The mortgagee, or such other party
designated by the court, in a foreclosure under this Article
shall give public notice of the sale as follows:
        (1) The notice of sale shall include at least the
    following information, but an immaterial error in the
    information shall not invalidate the legal effect of the
            (A) the name, address and telephone number of the
        person to contact for information regarding the real
            (B) the common address and other common
        description (other than legal description), if any, of
        the real estate;
            (C) a legal description of the real estate
        sufficient to identify it with reasonable certainty;
            (D) a description of the improvements on the real
            (E) the times specified in the judgment, if any,
        when the real estate may be inspected prior to sale;
            (F) the time and place of the sale;
            (G) the terms of the sale;
            (H) the case title, case number and the court in
        which the foreclosure was filed; and
            (H-1) in the case of a condominium unit to which
        subsection (g) of Section 9 of the Condominium Property
        Act applies, the statement required by subdivision
        (g)(5) of Section 9 of the Condominium Property Act;
            (I) such other information ordered by the Court.
        (2) The notice of sale shall be published at least 3
    consecutive calendar weeks (Sunday through Saturday), once
    in each week, the first such notice to be published not
    more than 45 days prior to the sale, the last such notice
    to be published not less than 7 days prior to the sale, by:
    (i) (A) advertisements in a newspaper circulated to the
    general public in the county in which the real estate is
    located, in the section of that newspaper where legal
    notices are commonly placed and (B) separate
    advertisements in the section of such a newspaper, which
    (except in counties with a population in excess of
    3,000,000) may be the same newspaper, in which real estate
    other than real estate being sold as part of legal
    proceedings is commonly advertised to the general public;
    provided, that the separate advertisements in the real
    estate section need not include a legal description and
    that where both advertisements could be published in the
    same newspaper and that newspaper does not have separate
    legal notices and real estate advertisement sections, a
    single advertisement with the legal description shall be
    sufficient; and (ii) such other publications as may be
    further ordered by the court.
        (3) The party who gives notice of public sale in
    accordance with subsection (c) of Section 15-1507 shall
    also give notice to all parties in the action who have
    appeared and have not theretofore been found by the court
    to be in default for failure to plead. Such notice shall be
    given in the manner provided in the applicable rules of
    court for service of papers other than process and
    complaint, not more than 45 days nor less than 7 days prior
    to the day of sale. After notice is given as required in
    this Section a copy thereof shall be filed in the office of
    the clerk of the court entering the judgment, together with
    a certificate of counsel or other proof that notice has
    been served in compliance with this Section.
        (4) The party who gives notice of public sale in
    accordance with subsection (c) of Section 15-1507 shall
    again give notice in accordance with that Section of any
    adjourned sale; provided, however, that if the adjourned
    sale is to occur less than 60 days after the last scheduled
    sale, notice of any adjourned sale need not be given
    pursuant to this Section. In the event of adjournment, the
    person conducting the sale shall, upon adjournment,
    announce the date, time and place upon which the adjourned
    sale shall be held. Notwithstanding any language to the
    contrary, for any adjourned sale that is to be conducted
    more than 60 days after the date on which it was to first
    be held, the party giving notice of such sale shall again
    give notice in accordance with this Section.
        (5) Notice of the sale may be given prior to the
    expiration of any reinstatement period or redemption
        (6) No other notice by publication or posting shall be
    necessary unless required by order or rule of the court.
        (7) The person named in the notice of sale to be
    contacted for information about the real estate may, but
    shall not be required, to provide additional information
    other than that set forth in the notice of sale.
    (d) Election of Property. If the real estate which is the
subject of a judgment of foreclosure is susceptible of
division, the court may order it to be sold as necessary to
satisfy the judgment. The court shall determine which real
estate shall be sold, and the court may determine the order in
which separate tracts may be sold.
    (e) Receipt upon Sale. Upon and at the sale of mortgaged
real estate, the person conducting the sale shall give to the
purchaser a receipt of sale. The receipt shall describe the
real estate purchased and shall show the amount bid, the amount
paid, the total amount paid to date and the amount still to be
paid therefor. An additional receipt shall be given at the time
of each subsequent payment.
    (f) Certificate of Sale. Upon payment in full of the amount
bid, the person conducting the sale shall issue, in duplicate,
and give to the purchaser a Certificate of Sale. The
Certificate of Sale shall be in a recordable form, describe the
real estate purchased, indicate the date and place of sale and
show the amount paid therefor. The Certificate of Sale shall
further indicate that it is subject to confirmation by the
court. The duplicate certificate may be recorded in accordance
with Section 12-121. The Certificate of Sale shall be freely
assignable by endorsement thereon.
    (g) Interest after Sale. Any bid at sale shall be deemed to
include, without the necessity of a court order, interest at
the statutory judgment rate on any unpaid portion of the sale
price from the date of sale to the date of payment.
(Source: P.A. 86-974.)
    Section 5. The Condominium Property Act is amended by
changing Section 9 as follows:
    (765 ILCS 605/9)  (from Ch. 30, par. 309)
    Sec. 9. Sharing of expenses - Lien for nonpayment.
    (a) All common expenses incurred or accrued prior to the
first conveyance of a unit shall be paid by the developer, and
during this period no common expense assessment shall be
payable to the association. It shall be the duty of each unit
owner including the developer to pay his proportionate share of
the common expenses commencing with the first conveyance. The
proportionate share shall be in the same ratio as his
percentage of ownership in the common elements set forth in the
    (b) The condominium instruments may provide that common
expenses for insurance premiums be assessed on a basis
reflecting increased charges for coverage on certain units.
    (c) Budget and reserves.
        (1) The board of managers shall prepare and distribute
    to all unit owners a detailed proposed annual budget,
    setting forth with particularity all anticipated common
    expenses by category as well as all anticipated assessments
    and other income. The initial budget and common expense
    assessment based thereon shall be adopted prior to the
    conveyance of any unit. The budget shall also set forth
    each unit owner's proposed common expense assessment.
        (2) All budgets adopted by a board of managers on or
    after July 1, 1990 shall provide for reasonable reserves
    for capital expenditures and deferred maintenance for
    repair or replacement of the common elements. To determine
    the amount of reserves appropriate for an association, the
    board of managers shall take into consideration the
    following: (i) the repair and replacement cost, and the
    estimated useful life, of the property which the
    association is obligated to maintain, including but not
    limited to structural and mechanical components, surfaces
    of the buildings and common elements, and energy systems
    and equipment; (ii) the current and anticipated return on
    investment of association funds; (iii) any independent
    professional reserve study which the association may
    obtain; (iv) the financial impact on unit owners, and the
    market value of the condominium units, of any assessment
    increase needed to fund reserves; and (v) the ability of
    the association to obtain financing or refinancing.
        (3) Notwithstanding the provisions of this subsection
    (c), an association without a reserve requirement in its
    condominium instruments may elect to waive in whole or in
    part the reserve requirements of this Section by a vote of
    2/3 of the total votes of the association. Any association
    having elected under this paragraph (3) to waive the
    provisions of subsection (c) may by a vote of 2/3 of the
    total votes of the association elect to again be governed
    by the requirements of subsection (c).
        (4) In the event that an association elects to waive
    all or part of the reserve requirements of this Section,
    that fact must be disclosed after the meeting at which the
    waiver occurs by the association in the financial
    statements of the association and, highlighted in bold
    print, in the response to any request of a prospective
    purchaser for the information prescribed under Section
    22.1; and no member of the board of managers or the
    managing agent of the association shall be liable, and no
    cause of action may be brought for damages against these
    parties, for the lack or inadequacy of reserve funds in the
    association budget.
    (d) (Blank).
    (e) The condominium instruments may provide for the
assessment, in connection with expenditures for the limited
common elements, of only those units to which the limited
common elements are assigned.
    (f) Payment of any assessment shall be in amounts and at
times determined by the board of managers.
    (g) Lien.
        (1) If any unit owner shall fail or refuse to make any
    payment of the common expenses or the amount of any unpaid
    fine when due, the amount thereof together with any
    interest, late charges, reasonable attorney fees incurred
    enforcing the covenants of the condominium instruments,
    rules and regulations of the board of managers, or any
    applicable statute or ordinance, and costs of collections
    shall constitute a lien on the interest of the unit owner
    in the property prior to all other liens and encumbrances,
    recorded or unrecorded, except only (a) taxes, special
    assessments and special taxes theretofore or thereafter
    levied by any political subdivision or municipal
    corporation of this State and other State or federal taxes
    which by law are a lien on the interest of the unit owner
    prior to preexisting recorded encumbrances thereon and (b)
    encumbrances on the interest of the unit owner recorded
    prior to the date of such failure or refusal which by law
    would be a lien thereon prior to subsequently recorded
    encumbrances. Any action brought to extinguish the lien of
    the association shall include the association as a party.
        (2) With respect to encumbrances executed prior to
    August 30, 1984 or encumbrances executed subsequent to
    August 30, 1984 which are neither bonafide first mortgages
    nor trust deeds and which encumbrances contain a statement
    of a mailing address in the State of Illinois where notice
    may be mailed to the encumbrancer thereunder, if and
    whenever and as often as the manager or board of managers
    shall send, by United States certified or registered mail,
    return receipt requested, to any such encumbrancer at the
    mailing address set forth in the recorded encumbrance a
    statement of the amounts and due dates of the unpaid common
    expenses with respect to the encumbered unit, then, unless
    otherwise provided in the declaration or bylaws, the prior
    recorded encumbrance shall be subject to the lien of all
    unpaid common expenses with respect to the unit which
    become due and payable within a period of 90 days after the
    date of mailing of each such notice.
        (3) The purchaser of a condominium unit at a judicial
    foreclosure sale, or a mortgagee who receives title to a
    unit by deed in lieu of foreclosure or judgment by common
    law strict foreclosure or otherwise takes possession
    pursuant to court order under the Illinois Mortgage
    Foreclosure Law, shall have the duty to pay the unit's
    proportionate share of the common expenses for the unit
    assessed from and after the first day of the month after
    the date of the judicial foreclosure sale, delivery of the
    deed in lieu of foreclosure, entry of a judgment in common
    law strict foreclosure, or taking of possession pursuant to
    such court order. Such payment confirms the extinguishment
    of any lien created pursuant to paragraph (1) or (2) of
    this subsection (g) by virtue of the failure or refusal of
    a prior unit owner to make payment of common expenses,
    where the judicial foreclosure sale has been confirmed by
    order of the court, a deed in lieu thereof has been
    accepted by the lender, or a consent judgment has been
    entered by the court.
        (4) The purchaser of a condominium unit at a judicial
    foreclosure sale, other than a mortgagee, who takes
    possession of a condominium unit pursuant to a court order
    or a purchaser who acquires title from a mortgagee shall
    have the duty to pay the proportionate share, if any, of
    the common expenses for the unit which would have become
    due in the absence of any assessment acceleration during
    the 6 months immediately preceding institution of an action
    to enforce the collection of assessments, and which remain
    unpaid by the owner during whose possession the assessments
    accrued. If the outstanding assessments are paid at any
    time during any action to enforce the collection of
    assessments, the purchaser shall have no obligation to pay
    any assessments which accrued before he or she acquired
        (5) The notice of sale of a condominium unit under
    subsection (c) of Section 15-1507 of the Code of Civil
    Procedure shall state that the purchaser of the unit other
    than a mortgagee shall pay the assessments and the legal
    fees required by subdivisions (g)(1) and (g)(4) of Section
    9 of this Act. The statement of assessment account issued
    by the association to a unit owner under subsection (i) of
    Section 18 of this Act, and the disclosure statement issued
    to a prospective purchaser under Section 22.1 of this Act,
    shall state the amount of the assessments and the legal
    fees, if any, required by subdivisions (g)(1) and (g)(4) of
    Section 9 of this Act.
    (h) A lien for common expenses shall be in favor of the
members of the board of managers and their successors in office
and shall be for the benefit of all other unit owners. Notice
of the lien may be recorded by the board of managers, or if the
developer is the manager or has a majority of seats on the
board of managers and the manager or board of managers fails to
do so, any unit owner may record notice of the lien. Upon the
recording of such notice the lien may be foreclosed by an
action brought in the name of the board of managers in the same
manner as a mortgage of real property.
    (i) Unless otherwise provided in the declaration, the
members of the board of managers and their successors in
office, acting on behalf of the other unit owners, shall have
the power to bid on the interest so foreclosed at the
foreclosure sale, and to acquire and hold, lease, mortgage and
convey it.
    (j) Any encumbrancer may from time to time request in
writing a written statement from the manager or board of
managers setting forth the unpaid common expenses with respect
to the unit covered by his encumbrance. Unless the request is
complied with within 20 days, all unpaid common expenses which
become due prior to the date of the making of such request
shall be subordinate to the lien of the encumbrance. Any
encumbrancer holding a lien on a unit may pay any unpaid common
expenses payable with respect to the unit, and upon payment the
encumbrancer shall have a lien on the unit for the amounts paid
at the same rank as the lien of his encumbrance.
    (k) Nothing in Public Act 83-1271 is intended to change the
lien priorities of any encumbrance created prior to August 30,
(Source: P.A. 91-357, eff. 7-29-99.)

Effective Date: 1/1/2007