Chapter 15.32 CONDOMINIUMS

B. “Agent” means any person, firm, partnership, association, joint venture, corporation or any other entity or combination of entities who represents or acts for or on behalf of a developer in selling or offering to sell any condominium unit, excepting an escrow officer acting for a title company.

C. “Blanket encumbrance” means a trust deed, mortgage, judgment or other lien or encumbrance including an option or contract to sell or a trust agreement affecting a condominium including any lien or other encumbrance arising as a result of the imposition of any tax assessment by a public authority.

D. “Board of managers” means the board of managers provided and referred to in the Illinois Condominium Property Act.

E. “Closing of the sale” means the operation of transferring ownership of a condominium unit to the purchaser from the developer. Such transfer may be through a deed of conveyance, articles of agreement for a warranty deed, or transfer of beneficial interest in a land trust.

F. “Common elements” means all portions of the property except the units including limited common elements, unless otherwise specified.

G. “Common expenses” means the proposed or actual expenses affecting the property, including reserves, if any, lawfully assessed by the board of managers of the unit owners’ association.

H. “Condominium” means a form of property established pursuant to the Illinois Condominium Property Act.

I. “Condominium project” is a plan by a developer to sell condominium units in a building whether through conversion to condominium status or construction of new buildings with condominium ownership.

J. “Conversion” means the offering for sale by a developer or developer’s agent of a conversion condominium unit that was rented by any person before commencement of a condominium project which includes such unit.

K. “Conversion condominium” means a property which contains structures, excepting those newly constructed and intended for condominium ownership, which are or have previously been wholly or partially occupied before recording of condominium instruments by persons other than those who have contracted for the purchase of condominiums.

L. “Declaration” means the declaration referred to in the Illinois Condominium Property Act.

M. “Developer” means any person who submits property legally or equitably owned by him to the provisions of the Act, or any person who offers units legally or equitably owned by him for sale in the ordinary course of his business, including any successor or successors to such developers’ entire interest in the property other than the purchaser of an individual unit. “Developer” may include a land trustee or beneficiary of a land trust.

N. “Limited common elements” means a portion of the common elements so designated in the declaration as being reserved for the use of a certain unit or units to the exclusion of other units, including but not limited to balconies, terraces, patios and parking spaces or facilities.

O. “Notice of intent” means the Notice of Intent to Submit the Real Estate to the Illinois Condominium Property Act which is contained in 765 ILCS 605/30.

P. “Offering” means any statement by the developer or his representative that a condominium unit in a specified condominium project is or may be available for sale.

Q. “Person” means a natural individual, corporation, partnership, trustee or other legal entity capable of holding title to real property.

R. “Plat” means a plat or plats of survey of the parcel and of all units in the property submitted to the provisions of the Act, which may consist of a three-dimensional horizontal and vertical delineation of all such units.

S. “Property report” means the property report required by this chapter.

T. “Prospective purchaser” means a person who visits the condominium project site for the purpose of inspection for possible purchase or who requests the property report.

U. “Unit” means a part of the property designed and intended for any type of independent use.

V. “Unit owners’ association” or “association” means the association of all the unit owners acting pursuant to bylaws through its duly elected board of managers.

15.32.030 Property report – Required contents.

At the time of offering for sale any condominium units in a condominium project, a developer shall prepare a property report and shall certify by affidavit that all disclosures are true to the best of his knowledge and belief. The report shall contain, but not be limited to, the following information about the condominium project:

A. A statement of ownership and responsibility which will include:

1. The name and address of the developer and owner. If the developer and owner are artificial entities such as a corporation, trust or partnership, then the statement shall include all officers and directors of the corporation, all partners of a general partnership. The names and address of all persons with an ownership interest in the offering equal to ten percent or more of the total ownership interest therein;

2. All architects, contractors, attorneys, engineers, accountants and principal sales and management agents.

B. A description of the condominium project in addition to the legal documents described in subsection D of this section:

1. Map or plat showing size and dimensions of the condominium project together with all improvements, including:

a. Description of the condominium units offered and the nature and extent of individual ownership in such condominium units,

b. Description and nature and extent of ownership of all common elements, general and limited,

c. Description, nature and ownership of all property and facilities on the site which are not part of the condominium,

d. Description of all existing and proposed facilities including but not limited to recreational facilities within the condominium,

e. Location, nature and ownership of all existing and proposed streets, parking facilities and roads on and contiguous to the site, as well as all existing and proposed easements on or contiguous to the site,

f. Drawings, architectural plans and other suitable documents setting forth the necessary information for location, maintenance and repair of all condominium facilities. (Such items shall be incorporated in the property report by reference, and shall be located at the sales office site and shall be turned over to the council co-owners upon transfer of control by the developer.);

2. Projected initiation and completion dates for any proposed construction, renovation or conversion;

3. Uses permitted for individual condominium units by the declaration, bylaws of the condominium association or organization and applicable zoning provisions, including whether or under what conditions a condominium unit may be rented;

4. Statement as to whether a purchaser may purchase more than one unit and what circumstances or conditions;

5. Statement of legal ownership, listing all restrictions of record and the condition of title.

C. A statement of the following financial aspects of the condominium project including, but not limited to:

1. Name of providers of construction and interim funds;

2. Name of institution offering long-term mortgage financing for the condominium units, if available, and terms and conditions of such mortgages;

3. Statement of financial ability to complete within a specified period of time construction, renovation or conversion of proposed condominium units and recreational and other facilities, including projected costs and methods of payment, and the additional costs to be imposed upon unit owners if such date is not met;

4. Statement of any pending litigation which would affect the condominium and/or the developer’s ability to convey clear title.

D. Copies of the sales documents and literature including, but not limited to:

1. Copies of purchase contract;

2. Copies of sample deed of trust, mortgage and promissory note;

3. Statement of sales price, terms and conditions of sale of each unsold unit;

4. Copy of sales brochure and floor plans;

5. Identity of agent of the developer in charge of sales;

6. Statement of terms and conditions of the sale including estimated itemized closing and settlement costs, taxes and expected assessments levied either by the condominium or a governmental entity;

7. Statement of anticipated monthly payments based upon a commonly used purchaser’s financing arrangement, e.g., twenty percent downpayment, twenty-year payoff, and taxes, condominium fee and utilities for a period of one year from the expected date of settlement, as well as a statement of what costs are included in the assessments made by the board of managers or the developer;

8. If financed by the developer, the proposed financing of each unit, including percent of sales price required for downpayment, duration of the loan, interest rate, service charge, appraisal charge, closing charges and total monthly payment;

9. A description of all appliances and personal property included with each unit.

E. Copies of legal documents binding or to be binding upon the unit owners and the unit owners’ association for one year or more from the date of the first sale, including:

1. The declaration or master deed and plat. Prior to the recording of the declaration, a preliminary declaration and plat may be supplied, provided it is accompanied by a statement in capital letters inserted in a conspicuous caption as follows:

THE DESCRIPTION OF UNITS AND PERCENTAGE OF OWNERSHIP INTEREST IN COMMON ELEMENTS HEREIN IS PRELIMINARY AND MAY BE CHANGED IN MATERIAL RESPECTS UPON THE RECORDING OF THE DECLARATION AND PLAT WHICH MUST OCCUR NO LESS THAN 30 DAYS PRIOR TO THE TIME OF THE FIRST CLOSING.

If a declaration of master deed or plat are not available at the time the property report is prepared a floor plan shall be provided at least thirty days prior to closing;

2. The articles of incorporation or charter of the condominium association;

3. The bylaws and regulations of the condominium association;

4. Any leases of real or personal property binding for one year or more from the date of first sale;

5. Schedules of ownership interest in the general and limited common areas;

6. Coverage and amounts of condominium insurance policies;

7. Any management contract, employee contract or any other contract affecting the use, maintenance or access to all or any part of the condominium binding for one year or more.

F. Statement of management and expected operation of the condominium project including, but not limited to:

1. Name of management agent, if any, and the services the agent will perform;

2. Statement disclosing that under the provisions of this chapter the developer may not enter into any exclusive contract for management or services of a condominium project or permit a clause in the sales contract between the developer and prospective purchaser of a condominium unit that would stipulate an exclusive management contract to exceed a period of one year after the condominium project is given over to the individual unit owners in accordance with state law;

3. Length of term of any management contract and charges and circumstances, if any, under which the charges may be increased;

4. The conditions, if any, under which the contract may be cancelled or terminated;

5. Statement disclosing any relationship between the developer and the management firm and their respective corporate officers and controlling interests;

6. An estimated operating budget for the condominium, projected for a period of one year from the expected date that control of the condominium project passes to the board of managers. The operating budget shall include at least the following:

a. Operation Costs.

Utilities.

Heating fuels.

Janitorial services.

Trash and garbage disposal.

Ground and building maintenance.

Security.

Maintenance and operation of recreational and other facilities.

Building insurance.

Elevator maintenance.

Sidewalks and street maintenance.

Other operating costs.

b. Management Costs.

Account and bookkeeping services.

Legal services.

Management fees.

c. Reserve Costs.

Reserve for improvements.

Reserve for unexpected repair work.

Reserve for replacement and upkeep of common area and facilities including the basis upon which reserves are calculated.

Reserve for taxes and special assessments.

If no reserve is provided for any one or more of the costs listed in this subsection, the following statement must be inserted in the property report in a type, size and style equal to at least ten point bold type:

THE DEVELOPER HAS NOT PROVIDED A RESERVE FOR CERTAIN POSSIBLE FUTURE COSTS OF THE CONDOMINIUM IN HIS BUDGET. ACCORDINGLY, IT MAY BE NECESSARY TO PROVIDE FOR A SPECIAL ASSESSMENT TO ALL CONDOMINIUM UNIT OWNERS TO PAY FOR SUCH COSTS SHOULD THEY OCCUR.

7. An estimate of taxes which will be assessed against the unit owner during the first two years of his ownership.

G. In the case of a conversion from rental or other legal status to condominium, a report from a qualified licensed engineer or registered architect stating the condition and the rated life and expected useful life of roof, foundation, external and supporting walls, mechanical, electrical, plumbing and structural elements and all other common facilities, together with an estimate of repair and replacement costs at current market prices, which shall indicate what the cost per category of co-owner would be if the co-owners were assessed for the estimated replacement cost. This report shall include the approximate dates of installation of the facilities listed in this subsection and the dates of major repairs to such facilities.

H. Each property report shall contain on the first page the following warning in capital letters:

THE VILLAGE OF RIVERDALE HAS NOT PASSED ON THE MERITS OF THIS PROJECT OR GIVEN APPROVAL OF THE STATEMENTS IN THIS PROPERTY REPORT. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER AND ARE NOT BINDING ON THE DEVELOPER. REFER TO YOUR PURCHASE CONTRACT FOR BINDING REPRESENTATIONS.

I. Each property report shall include a statement of whether, and under what circumstances, the unit owners are required to be a member of, support, or participate financially in recreational facilities, such as but not limited to health clubs, exercise clubs, exercise rooms, swimming pools, party rooms and golf putting greens. If any such facility is not part of the common elements, the following warning shall be included in capital letters, in a conspicuous caption:

THE (HERE NAME FACILITIES) ARE NOT INCLUDED IN THE COMMON ELEMENTS. THESE FACILITIES ARE AVAILABLE TO UNIT OWNER FOR (HERE DESCRIBE MONTHLY CHARGE AND INITIATION FEE). UNIT OWNERS ARE/ARE NOT (AS APPLICABLE) REQUIRED TO PARTICIPATE FINANCIALLY.

J. Each property report shall include a description of the location, ownership and availability to unit owners and the general public of accessory off-street parking associated with the condominium. If all of such parking facilities are not (1) part of the common elements or (2) divided as individual parking spaces among and designated as being part of the units, the following statement shall be included in a conspicuous caption:

PARKING FACILITIES ASSOCIATED WITH THIS BUILDING ARE NOT OWNED BY THE UNIT OWNERS AND MAY BE SUBJECT TO BEING DENIED TO OR TAKEN FROM UNIT OWNERS.

The description of the availability of such off-street parking shall include a statement as to the parking requirements contained in the zoning ordinance at the time the building was originally constructed or as required under any ordinance enacted under the site plan review procedures of the zoning ordinance for a specific development.

K. Each property report shall include a statement if there are any restrictions upon the free sale, transfer, conveyance, encumbrance or leasing of a unit. If such restrictions exist, the following shall be included in capital letters in a conspicuous caption:

THE SALE, LEASE OR TRANSFER OF YOUR UNIT IS RESTRICTED OR CONTROLLED.

Immediately following this statement, there shall appear a reference to the documents, articles, paragraphs and pages in the property report where the restriction, limitation or control on the sale, lease or transfer of units is set forth or described in detail.

15.32.040 Property report – Filing with building department.

A copy of the property report and any amendments and supplements thereto shall be filed with the building department by the developer promptly upon preparation. Such copy shall be used for informational purposes only and shall be attached to the building permit filed.

15.32.050 Property report – Review by prospective purchaser.

Subject to the provisions contained in this chapter, a developer or agent shall not enter into a building contract or agreement for the sale of a condominium unit until:

A. A copy of the property report and any amendments and supplements thereto, if any, have been given to the prospective purchaser and to all existing tenants in condominium conversions;

B. The prospective purchaser has been given an opportunity to read the property report;

C. A receipt signed by the prospective purchaser has been received by the developer or agent acknowledging that the prospective purchaser has received and has had an opportunity to review the property report.

15.32.060 Property report – Receipts to be kept by developer.

The receipts designated in RMC 15.32.050 shall be kept on file in the possession of the developer for a period of three years from the date of signature by the prospective purchaser. Receipts shall be subject to inspection by the village at any reasonable time.

15.32.070 Property report – Inspection by public.

The property report and any amendments and supplements thereto shall be made available by the developer for inspection by the public in a reasonably accessible place and at reasonable hours.

15.32.080 Execution of contract notwithstanding unavailable information.

If any information required to be contained in the property report is unavailable prior to the time a prospective purchaser desires to enter into a contract of sale, the contract may, at the purchaser’s option, be executed without the availability of such information; provided, that such information shall be furnished to the purchaser and its receipt acknowledged in writing by the purchaser prior to the closing of the sale.

15.32.090 Property report – Notification of changes.

Before making any material changes in the terms of the property report which has been submitted to the building department, the developer shall first notify the building department in writing of such intended change, and shall also notify all purchasers and prospective purchasers and all existing tenants in the condominium conversion of such change.

15.32.100 Property report – Copies of amendments, supplements or modifications.

After the signing of the contract of sale for a condominium unit and prior to the closing of the sale, the developer must deliver to the buyer a copy of any amendments, supplements or modifications to the property report.

15.32.110 Certificate of inspection – Application.

Any developer desiring to sell a unit as regulated by this chapter shall first apply to the building inspector for a certificate of inspection with respect to such unit and with respect to the common elements of the property containing the unit. The applicant shall submit with the application the declaration and plat pertaining to the property and “as built” architectural drawings of the building and the site development certified by a registered architect. The building inspector shall thereupon cause an inspection to be made of the unit and of the common elements to ascertain compliance with current codes and with those codes in force when the unit was built and shall make a determination thereof.

15.32.120 Certificate of inspection – Compliance required.

Except as otherwise contained in this chapter, no certificate of inspection shall be issued and no sale shall be made of any unit if such unit and the common elements pertaining thereto are not in compliance with current codes.

15.32.130 Certificate of inspection – Issuance.

After inspection, as provided for in RMC 15.32.110, has been completed and compliance with current codes has been ascertained or waived, the building inspector shall issue a certificate of inspection with respect to each unit inspected. All of the certificates issued shall include therein a specification of each separate condition of noncompliance which has been waived. The inspector shall also issue to such applicant clear and legible copies of the certificates suitable for posting.

15.32.140 Certificate of inspection – Posting and documentation.

It shall become the obligation of the applicant to post and keep posted one copy of the certificate of inspection on the front doorway of each unit to which it pertains until the sale of that unit is consummated and to post and keep posted a copy of the certificate pertaining to the common elements on the doorway of the main entrance and any such other places as may be directed by the building inspector until the sale of the last unit has been consummated. The developer shall maintain documentation pertaining to each unit to establish that the purchaser of such unit has received from him or his agent a copy of the certificate of inspection pertaining thereto. These records shall be maintained and available for examination by appropriate authorities of the village.

15.32.150 Certificates required to close sale.

It shall be considered a violation of this chapter by the developer if a closing of a sale of any unit located within the village is completed without the issuance of a certificate of inspection for the unit and the common elements, or a certificate of occupancy.

15.32.160 Waiver of current village codes and ordinances.

For condominium conversions, the requirements of compliance with current codes may be waived under the following circumstances:

A. With respect to the number of off-street parking spaces, if the number was in compliance with the codes in force when the unit was built and if compliance with current codes would lessen the number of off-street parking spaces available to the unit owners;

B. With respect to other provisions of the code, if the unit containing the building and the common elements pertaining thereto were in compliance with the codes in force when the unit was built and if current compliance would require structural changes;

C. With respect to the total number of and location of units contained within the building, if the number and location were in compliance with the codes in force when the building was built.

15.32.170 New construction – Heavy items installed on roof.

All major items of any significant weight installed on the roof shall be mounted on platforms raised above the roof plane by a minimum of eighteen inches so that the roof can be reasonably maintained.

15.32.180 New construction – Meeting room ventilation.

If a meeting room is provided, a separate ventilation exhaust system must be provided for that room sufficient to provide six air changes per hour.

15.32.190 Warranties.

Any sale agreement for the sale of a condominium unit under the provisions of this chapter shall contain a warranty that the unit and common elements are in good condition, free from any latent or patent defects and that the developer shall repair or replace any defect in the unit or the common elements at the developer’s sole cost promptly upon being notified of such defect, in writing, by the purchaser; provided, however, that such notice of defect must be delivered to the developer within one year from closing of the sale of the condominium unit.

15.32.200 Escrow funds.

To assume compliance with the obligations of the developer under this chapter, the developer shall place in escrow a sum equal to three percent of the gross sales price of each unit upon closing, which sum shall be allocated to the individual account of the co-owner of the unit sold. This sum shall remain in escrow for one year from the date of closing or one year from the date the control of the condominium has been transferred to the unit owners’ association, as provided in the Illinois Condominium Property Act, whichever occurs last. The mayor is authorized to establish rules, regulations and procedures for the implementation of this section.

15.32.210 Exclusive management contracts.

The developer may not enter into any exclusive contract for management or services of a condominium project or permit a clause in the sales contract between a developer and prospective purchaser of a condominium unit that would stipulate an exclusive management or service contract to exceed a period of one year after the condominium project is given over to the individual unit owners in accordance with state law.

15.32.220 Additional requirements of developer.

A. The developer shall be required to pay his proportionate share of maintenance, service and/or management fees for unsold units.

B. The escrow account of the developer shall be used for payment of any development expenses attributable to him which are assessed after closing against the owner of a condominium unit.

C. For conversions only, the developer shall pay all reasonable relocation costs for tenants then residing in the building to be converted having Section 8 housing subsidies on the date that the letter of intent to convert is delivered.

15.32.230 Conversions – Delay of eviction for certain families.

For tenant families containing at least one member of the household who is sixty-five years of age or older or who is physically or mentally disabled, or for tenant families containing two or more children as part of the household, eviction shall be delayed beyond the term of the existing lease for a period of not less than six months from the date of filing of the declaration.

15.32.240 Conversions – Tenant’s right to terminate lease.

Any tenant with more than thirty days remaining on a lease who receives a notice of intent to convert shall at any time after receipt of such notice have the right to terminate such lease within thirty days’ written notice to the landlord. Such termination shall be without penalty or other termination charge to the tenant.

15.32.250 Conversions – Right of first refusal.

Each tenant in a conversion project shall receive a copy of the property report. For a period of thirty days following the date the tenant receives a copy of the property report, such tenant shall have the right of first refusal on the unit he/she occupies. This provision shall not reduce the rights provided for under state ordinances.

15.32.260 Conversions – Tenant-purchaser’s right to cancel.

A. The developer in a condominium conversion shall include in the contract of sale for each condominium unit a clause which shall read as follows:

Seller hereby grants to any purchaser who is an existing tenant at time of notice of conversion a period of fifteen (15) days within which to review the condominium documents made available to the purchaser pursuant to this Ordinance.

Notwithstanding any other provision of this agreement, if the tenant-purchaser is not satisfied with the said condominium documents, the tenant-purchaser may, at his election, by written notice to the seller at any time prior to midnight local time of the fifteenth (15th) day following the date the contract is signed by the tenant-purchaser, terminate this agreement, and the tenant-purchaser’s deposit shall be refunded and the parties thereto shall have no further rights or liabilities under the agreement.

B. The clause in the sales contract which provides for the fifteen-day cooling-off period must be located:

1. Either immediately above the purchaser’s signature; or

2. Under a conspicuous caption entitled, “TENANT-PURCHASER’S RIGHT TO CANCEL.”

C. The rights of tenant-purchasers under this section may not be waived in the contract of same and any attempted waiver is void.

15.32.270 Nondiscrimination.

No person shall be denied the right to purchase or lease a condominium unit because of race, religion, color, ancestry, age, sex, physical or mental disabilities or marital status.

15.32.280 Rental arrangement if condominium project does not succeed or is delayed.

A. Every contract of sale for each condominium unit shall contain a provision requiring that satisfactory rental arrangements will be afforded the prospective purchaser for a definite period of time in the eventuality that the condominium project does not succeed in anticipated sales.

B. Every contract of sale for a condominium unit shall provide that in the eventuality the condominium project is not consummated within a reasonable period of time, the prospective purchaser or purchaser will be afforded rental arrangements for a reasonable period of time and that a specific portion of the rental payment will be applied to the condominium unit purchase price at settlement.

15.32.290 Exclusion of small developments.

The provisions of this chapter shall not apply to conversions of condominium projects containing six dwelling units or less; provided, however, that all conversions contained therein, regardless of the number of units, shall be subject to the village inspections and the reports outlined in RMC 15.32.110 through 15.32.150. Moreover, nothing contained in this provision shall exclude or exempt any condominium project from the requirements of state ordinances.

15.32.300 Resale of previously inspected units.

A. This chapter shall not apply to the resale of any unit for which a certificate of inspection has been previously issued pursuant to the terms of this chapter, or to the sale or resale of any unit which was originally designed and sold under the Condominium Property Act if a certificate of occupancy has been issued with respect thereto.

B. There shall be no clause in the sales contract between the developer and the prospective purchaser of a condominium unit that would create an exclusive sales agreement with a real estate agent as to the subsequent sale of the condominium unit. Any condominium owner shall have the right to decide what agent, if any, shall be used in the subsequent sale of a condominium unit.

15.32.310 Fees.

The applicant shall pay a fee of one hundred twenty-five dollars for every ten units or fraction thereof within the building for inspection of the common elements, plus a fee of fifteen dollars for inspection of each unit. (Ord. 2002-08 § 5, 2002)

15.32.320 Violations and penalties.

A. The village attorney or prosecutor is authorized and directed to receive complaints and conduct such investigations as he deems necessary pursuant to the authority vested in that office.

B. Whenever it is determined by the village attorney or prosecutor that there has been a violation of this chapter or any duly adopted rule or regulation of the village, that office is authorized to seek all or a portion of the following relief or any other relief that may be granted by law:

1. Attempt to conciliate the matter by conference or otherwise and secure a written conciliation agreement; or

2. Seek a written assurance of discontinuance which shall be signed by the developer and the village attorney or prosecutor; or

3. Institute injunctive or other appropriate action or proceeding in any court of competent jurisdiction to obtain a restraining order, permanent or temporary injunction or any other appropriate form of relief;

4. Institute criminal proceedings.

C. 1. The village attorney or prosecutor may apply to any court of competent jurisdiction to enjoin a violation which has been found to exist by the village as a result of an inspection. The penalty for such violation shall be one hundred dollars for each unit with respect to which the violation has occurred. Each day during which any unit has been advertised or offered and such advertisement or offer has not been withdrawn shall constitute a separate offense.

2. Any person who willfully makes an untrue or misleading statement of material fact to be stated therein shall be guilty of a misdemeanor and, upon conviction, shall be subject to a fine of not more than five hundred dollars or imprisonment for a period of not more than six months, or both.

3. Civil Remedy. Any unit owner may file a suit in any court of competent jurisdiction for injuries sustained by him as a result of a violation by the developer of any provisions of this chapter. In the event that such violation is found to occur, the court may assess compensatory damages, and in addition, punitive damages equal to three times the amount of compensatory damages, but not more than one thousand dollars. The court shall also award the unit owner’s attorney reasonable fees for his services in the event that such a violation has occurred. If the court finds that no violation has occurred, the court shall assess reasonable attorneys’ fees against the unit owner.