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Budget must describe each owner's assessment amount

Q. A question has come up at the board of our condominium association. Does the budget need to describe each owner's assessment amount?

A. Yes; this is addressed in Section 9(c)(1) of the Illinois Condominium Property Act. The board of managers must 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. In addition, and addressing your question, that section also provides that the budget must also set forth each unit owner's proposed common expense assessment.

Q. Our condominium adopted a rule that provides for mail-in ballots, or in-person balloting, for our election of the board, all in lieu of proxies. Can the board permit owners to submit their ballot by email or fax?

A. Adoption of the rule you describe (pursuant to Section 18(b)(9)(B) of the Condominium Property Act) would not, by itself, permit owners to return ballots for the election by email or fax. However, the Section 18(b)(9)(B-5) of the act does provide a procedure for a board to adopt rules that would permit owners to submit ballots for an election, in addition to in-person at the election, by any "acceptable technological means."

"Acceptable technological means" includes, without limitation, electronic transmission over the internet or other network, whether by direct connection, intranet, telecopier or electronic mail." Such a rule would have to be adopted by the board at least 120 days before an election.

Q. I am a unit owner in a condominium that has incurred constant ceiling water damage in a luxury unit. I purchased the unit from an owner who did not disclose the condition to me. The board has engaged experts who have been unable to determine where the source of the water issue lies. I will not be able to sell my unit with this condition, as the numerous attempts to remedy have failed. Is there any law or statute that requires the association to buy my unit at market value?

A. There is no Illinois case law or statute that would require the association to purchase the unit because of continued water leaks. You may have a remedy for damages against the seller of the unit for failure to advise you of this condition. The association may also have a continuing responsibility to investigate the cause of the water infiltration, and to repair if it is from a common element.

Q. There are two "limited common element" parking spaces assigned to my condominium unit. Can I sell one of the parking spaces to another owner in the condominium?

A. Yes, owners can transfer limited common elements, like a parking space, between themselves, unless prohibited by the declaration. The transfer has to be accomplished by a recorded amendment to the declaration. The amendment procedure is simpler than the amendment procedure for the typical change to the declaration. The amendment only requires the signatures of the owners involved in the transaction. Since it is a document that affects the public record and the association's records, the board should require that the amendment be prepared by the association's counsel.

• 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.

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