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