Unit owners can't use records for solicitations

Q. I recently read about a change in Section 19 of the Condominium Property Act concerning books and records of an association. I understand owners will no longer have to state a "proper purpose" to examine and inspect certain books and records of the association. Can you describe what books and records requests this will impact?

A. My Oct. 7 column concluded a three-part series on changes to the Condominium Property Act, and discussed the changes to Section 19. These changes go into effect on Jan. 1. But let me drill down a bit and describe the changes to Section 19 in greater detail here.

Section 19 governs the books and records of an association that must be maintained, and the rights of owners to examine and copy books and records. Section 19(b) is amended to expand the categories of documents that an owner is entitled to examine and copy by simply making a request in writing. An owner previously had to recite a proper purpose in order to examine books and records in Section 19(a) (6) and (9). As a result, a member of an association has a right to examine and make copies of the following books and records, as described in Section 19(a):

• The declaration, bylaws and plats of survey, and all amendments of these.

• Rules and regulations, if any.

• If the association is incorporated as a corporation, the articles of incorporation and all amendments.

• Minutes of all meetings of the association and board for the immediately preceding seven years.

• All current policies of insurance.

• All contracts, leases and other agreements in effect to which the association is a party, or under which the association and unit owners have obligations or liabilities.

• The books and records of account for the current and 10 immediately preceding fiscal years, including but not limited to itemized and detailed records of all receipts and expenditures.

This will make it easier for owners to obtain the books and records identified in these subsections. However, an owner must still state with particularity the records sought to be examined, and, I contend, merely reciting an entire category or categories of books and records is not adequately specific.

Moreover, subsection (e) is amended to eliminate the requirement that an owner state a "proper purpose" to examine books and records in Section 19(a) (6), (7), (8) and (9). However, as a condition of exercising the right to examine books and records in Section 19(a) (7) and (8), the board may require that the requesting unit owner certify in writing - certification - that the information will not be used for any commercial purpose, or for any purpose that does not relate to the association.

"Commercial purpose" is defined as the use of any part of a record or records described in Section 19(a) (7) and (8), or information derived from such records in any form, for sale, resale or solicitation or advertisement for sales or services. So, for example, an owner can't obtain a list of the names and addresses of owners so the he can advertise his painting business to the owners.

The amendment also permits the association to impose a fine against any person who makes a false certification.

Here are the books and records identified in Section 19(a) (7) and (8), for which the board may require the certification:

• The names, addresses, email addresses, telephone numbers and weighted vote of all members entitled to vote.

• Ballots and proxies related to ballots for all matters voted on by the members of the association during the immediately preceding 12 months, including but not limited to the election of members of the board of managers.

• 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.