Selling a condo in Chicago is different than selling a single family home. Condominium buildings are governed by their own Association which establishes rules and regulations, policies and procedures for selling and moving in/out of a unit. When planning on selling, it is important to work with your property manager to ensure that you comply with those policies and procedures as well as provide relevant documents and information required to complete the sale.
As The Real Estate Market continues to evolve and adjust to new Lending Guidelines sellers need to be not only proactive in readying and marketing your property for sale, but also preparing for the Closing. Lenders today scrutinize every aspect of the Condominium Association’s Governance and Financial History, so it is critical that you are fully prepared in advance for the Lending and Appraisal Processes that are vital to a Successful Closing.
Below is a guide and checklist of documents that you should provide to your Listing Agent at the time of the Listing:
1. Condominium Documents
- Declaration and By-Laws
- Rules and Regulations
- Minutes of Association Meetings (12 months minimum)
- Current Budget and Financial Report
Some condo associations provide this information on an intranet site for free while others charge a fee. Check with your property manager to find out how to access the latest condo docs.
2. Gathering Information
Most of this information can be provided by your property manager, and can be found in the above referenced condominium documents, ie meeting minutes, budget and financial reports
- Monthly assessment amount
- What does assessment include
Any Pending or Planned Special Assessments
- Amount of Special Assessment
- When is Special Assessment Due
- Provide details/reason for Special Assessment
Amount of Reserves
- What is the amount of reserves?
- Are any of the reserves earmarked for special purposes, ie., Capital Improvements, Debt Service, etc
- Is there a Reserve Study?
- Are any capital expenditures for major repairs/improvements to be paid from reserves?
- Are any unit owners delinquent more than 30 days in their assessments?
If yes, how many
- Provide further details
Does any single entity (owner) own more than 10% of total number of units in the building/complex?
If yes, how many?
Percentage of Owner Occupancy?
- What is the percentage?
- Is building investor friendly?
- Any rental restrictions?
Is There a Right of First Refusal clause in the Declaration?
- this could be an obstacle to a buyer securing a loan approval
Is the building/complex FHA approved?
Is there any commercial space in the building/complex?
If yes, what is the % of total square footage
Is there any pending litigation?
- Details of this information is provided in the 22.1 disclosure
Are there any Mechanic Liens, Tax Liens or Judgements against the Property?
Are there any Code Violations on Record?
Association Contact Information
- Name of Property Management Company
- Contact info for Property Manager
- Insurance Agency Contact Info
Selling your Chicago condo doesn’t have to be complicated with proper planning and preparation.
Carolyn Durocher and Jose Hernandez
Coldwell Banker Chicago