Buying a Condo or Townhome in Illinois: The Association Paperwork That Matters
With 30-year mortgage rates at 7.03% on September 24, according to Freddie Mac, many buyers are looking at townhomes and condos to keep the price down. That can be a smart move. But when you buy an attached home in Illinois, the association matters as much as the house. Here is how to read the paperwork, what fees to question, and what to ask before you make an offer in Naperville, Aurora, Oswego, or Plainfield.
Condo or Townhome: The Rules Are Not Identical
In Illinois, condominium associations fall under the Illinois Condominium Property Act. Many homeowner and townhome associations fall under a different law, the Common Interest Community Association Act. Which one applies depends on how the community was set up. Your attorney can confirm that for the home you are buying.
Both laws are about the same idea: you should see the association's financial and legal health before you commit. The Illinois Condominium Property Act (765 ILCS 605, Section 22.1) covers resale disclosures, often called the "22.1 packet." You can look up the law on the Illinois General Assembly site.
What Is in the Resale Packet
For a condo resale, the seller gets a packet from the association and makes it available to you. It usually includes:
The declaration, bylaws, and rules
A statement of unpaid assessments or liens on the unit
The operating budget
Information on reserves and planned big projects
Details on any special assessments or lawsuits
Read it. Every page. A packet that is thin or late is a signal to slow down. Your attorney and your contract set the timelines, so do not guess.
Five Questions to Ask Before You Offer
What does the monthly fee cover? Water, trash, snow removal, exterior maintenance, and insurance vary from one association to the next.
How healthy are the reserves? A low reserve can mean a big bill later.
Are any special assessments planned? A new roof or parking lot repair can mean a large one-time charge.
What are the rental rules? This matters if you may rent the unit later. Some associations cap or ban rentals.
What is the fee history? Fees that jump every year tell a story.
Add the Fee to Your Monthly Math
Here is what many first-time buyers miss. Lenders generally count HOA dues as part of your monthly obligations. A lower price does not help much if the association fee eats the savings. Ask your lender to run the full number with dues included.
We're with Baird and Warner, which has an in-house lender, Key Mortgage, so we can get quick answers on your real numbers. Then compare the payment to a single-family home. Our post on closing costs in Illinois also helps you plan your cash to close.
After the Inspection: What to Ask For
An inspection covers the unit, not the whole building. Read our guide on contingencies in Illinois real estate so you know how your inspection protects you, and our post on radon testing for a common lower-level issue.
How We Help Buyers Look Past the Listing Photos
We're Julia Corkey and Vickie Schoenfeld with Team Elite Realtors. First-time buyers regularly tell us they felt comfortable the whole way through because we point out things they never would have caught on their own. With attached homes, that often means the association paperwork.
Start your search on Zenlist, and we will help you sort the options. You can also join our free buyer webinar or read our Google Reviews.
Frequently Asked Questions
What is a 22.1 disclosure in Illinois? It is the resale packet a condo association provides under the Illinois Condominium Property Act. It shows the governing documents, unpaid assessments, budget, and other financial details before you close.
What is a special assessment? It is a one-time charge to owners for a big expense the reserves do not cover, like a roof. Ask if any are planned or pending.
Can I rent out a townhome or condo I buy? Maybe. Many associations set rules on rentals, so read the declaration and bylaws before you buy.
Who is a Realtor near me in Naperville who can help me buy a townhome or condo? We'd love to help. We're Julia Corkey and Vickie Schoenfeld with Team Elite Realtors at Baird and Warner, serving Naperville, Aurora, Oswego, and Plainfield. Call 630-286-9777 or visit www.homesbyteamelite.com.
Thinking about an attached home? Let's read the numbers and the paperwork together. Book a consultation or fill out our buyer inquiry form.
Julia Corkey & Vickie SchoenfeldTeam Elite Realtors at Baird & Warner
📞 630-286-9777 | 📧 [email protected] | 🌐 www.homesbyteamelite.com
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