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Public Act 094-1049 |
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AN ACT concerning condominium property.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 2. The Code of Civil Procedure is amended by | ||||
changing Section 15-1507 as follows:
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(735 ILCS 5/15-1507) (from Ch. 110, par. 15-1507)
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Sec. 15-1507. Judicial Sale.
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(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
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judicial sale in accordance with this Section 15-1507.
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(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
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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.
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(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:
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(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 | ||||
notice:
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(A) the name, address and telephone number of the | ||||
person to contact for
information regarding the real | ||||
estate;
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(B) the common address and other common | ||||
description (other than legal
description), if any, of |
the real estate;
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(C) a legal description of the real estate | ||
sufficient to identify it with
reasonable certainty;
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(D) a description of the improvements on the real | ||
estate;
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(E) the times specified in the judgment, if any, | ||
when the real estate
may be inspected prior to sale;
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(F) the time and place of the sale;
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(G) the terms of the sale;
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(H) the case title, case number and the court in | ||
which
the foreclosure was filed; and
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(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; | ||
and
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(I) such other information ordered by the Court.
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(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:
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(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
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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
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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.
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(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.
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(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
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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
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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.
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(5) Notice of the sale may be given prior to the | ||
expiration of any
reinstatement period or redemption | ||
period.
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(6) No other notice by publication or posting shall be | ||
necessary unless
required by order or rule of the court.
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(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.
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(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
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estate shall be sold, and the court may determine the order in | ||
which
separate tracts may be sold.
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(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.
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(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.
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(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.
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(Source: P.A. 86-974.)
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Section 5. The Condominium Property Act is amended by | ||
changing Section 9 as follows:
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(765 ILCS 605/9) (from Ch. 30, par. 309)
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Sec. 9. Sharing of expenses - Lien for nonpayment.
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(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
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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 | ||
declaration.
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(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.
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(c) Budget and reserves.
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(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
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conveyance of any unit. The budget shall also set forth | ||
each unit owner's
proposed common expense assessment.
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(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
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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
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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.
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(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
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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).
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(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.
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(d) (Blank).
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(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.
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(f) Payment of any assessment shall be in amounts and at | ||
times
determined by the board of managers.
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(g) Lien.
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(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
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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.
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(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
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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.
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(3) The purchaser of a condominium unit at a judicial
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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
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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.
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(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 | ||
title.
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(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.
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(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
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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.
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(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.
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(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
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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.
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(k) Nothing in Public Act 83-1271 is intended to change the |
lien
priorities of any encumbrance created prior to August 30, | ||
1984.
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(Source: P.A. 91-357, eff. 7-29-99.)
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