Board can refuse to disclose owner assessment delinquencies

Q. I am an owner in a condominium. I am concerned about the assessment delinquencies in the association, so I made a written request to the board for a list of the delinquent unit owners and the amounts they each owe. The board refused my request. Was the board within its rights!

A. Section 19 of the Illinois Condominium Property Act governs the owners' rights to examine and copy books and records. The issue of review of information concerning unit owner delinquencies is specifically addressed in that section. It provides that an association need not make records available for inspection, examination or copying by its members that relate to common expenses or other charges owed by a member other than the requesting member. The only exception is if the association is otherwise directed by court order. The board was acting within its authority in denying your request here.

Q. You recently addressed the sale of an entire condominium property by vote of the owners. Once the entire condominium property is sold, what is the procedure to remove the property from the Condominium Property Act?

A. This is governed by Section 16 of the Illinois Condominium Property Act. That section provides that all of the unit owners may remove the property from the provisions of the act by an instrument to that effect, duly recorded. The instrument itself, essentially an amendment to the declaration, is rather simple as amendments go, and would not have to include much text other than to expressly remove the property from the act.

It is usually easier for the purchaser of the entire property to cause it to be removed from the act than it is for the sellers. That is because while 75 percent of the owners may elect to sell the entire condominium property, it would take all of the owners in the association to remove the property from the act. Note, too, that the holders of all liens affecting any of the units need to consent or agree to remove the property from the act by instruments duly recorded, and the documents would provide that their liens be transferred to the undivided interest of the unit owner. These can be difficult hurdles. That said, there are some purchasers who insist the removal from the act be done by the seller before it takes title - that can be a deal breaker.

Q. The declaration for our condominium requires approval by 75 percent of the owners for an amendment. I thought I read that, by law, an amendment needs to be approved by two-thirds of the owners. What is correct?

A. This is governed by section 27(a) of the Condominium Property Act. If there is any unit owner other than the developer, the condominium instruments can be amended only upon the affirmative vote of two-thirds of those voting or upon the majority specified by the condominium instruments, provided that in no event can the condominium instruments require more than a three-quarters vote of all unit owners. Therefore, the requirement in your association's declaration that an amendment be approved by 75 percent of the owners would be applicable.

Note, too, that the act requires unanimous owner approval for certain amendments, like an amendment to change unit percentages of ownership. Also, some provisions of a declaration expressly require approval of an amendment by some stated percentage of the mortgage holders of the individual units. This would be valid under the act.

• David M. Bendoff is an attorney with Kovitz Shifrin Nesbit in the Chicago suburbs. Send questions for the column to him at CondoTalk@ksnlaw.com. The firm provides legal service to condominium, townhouse, homeowner associations and housing cooperatives. This column is not a substitute for consultation with legal counsel.