Q: I am on the board of a self-managed condominium. Can a condominium association prevent an investor unit owner who rents their unit from serving on the condominium board?
A: Pursuant to Section 18(a)(1) of the Condominium Act, the only criteria to be eligible to serve as a member of a condominium board is merely unit ownership. Occupancy is not a factor.
However, Section 18(a)(1) was changed a few years ago to allow existing condominium associations to vote on whether to amend their condominium declaration and require the majority of the board, or any other agreed-upon percentage, be unit owners who occupy their unit as their primary residence. That same legislation also said that such an amendment may not require that more than a simple majority of the board be unit owners who occupy their unit as a principal residence.
This means that even in the event of an amendment requiring a certain number of board positions being reserved for unit owners that occupy their units as a principal residence, a certain number of board seats are still available to unit owners who do not occupy their units as a principal residence. Thus, investor unit owners cannot be barred from serving on the board.
Q: I am a unit owner in a six-unit condominium association in Chicago. One of my fellow unit owners purchased two additional units in the association without sharing his plans with the unit owners and now owns just over 50% of the unit ownership. The remaining three independent unit owners are afraid he may attempt to sell the building without our approval. Can he do so?
A: Pursuant to section 13-72-085 of the City of Chicago Condominium Ordinance, 85% of the unit owners of a condominium association must vote in favor of the sale of the property for the measure to pass. Therefore, a single individual who owns just over 50% of the ownership may not force the sale of the building on the other unit owners without their approval because 85% approval is required. Nonetheless, the bulk unit owner could successfully control the majority of the seats on the board of directors after the next election and make decisions that would affect the spending of association funds and could present an offer to the other unit owners for a possible sale of the building for their vote.
Q: My husband and I, both retired, are considering purchasing a condominium unit in Chicago as a second home to be near our daughter. We have been single-family homeowners for many years and have never purchased a property governed by a community association. What do we need to know when purchasing this type of property as opposed to purchasing another single-family home?
A: Besides the size difference between a condo and a single-family home in most cases, there are significant differences in the ownership structure. It would be a good idea to talk with a real estate agent to explain the differences as well as an attorney, who would also handle the closing of the transaction. There are also many online resources and trade organizations that provide information about condo living.
The most significant difference is that a single-family homeowner can do with their property as they please. However, with a condo association a unit owner is legally bound to all the restrictions and obligations described in a condominium declaration. For example, the declaration will detail limits on property use and owner obligations such as paying assessments, as well as specifics on common-area repairs and replacements.
Got a question for the Condo Adviser? Email ctc-realestate@chicagotribune.com.
