When a condo owner dies alone: What’s next?
Q. If a condo owner without heirs or emergency contact information dies in their unit, what steps can the property manager and/or board take after the body has been removed by the police/coroner? In one instance in our association, the owner did not list any emergency contact information. It was later discovered that an immediate relative knew of the owner's passing, but never contacted anyone on the board or the property management company. What is the responsibility of the board and/or property association manager in this type of situation?
A. If the board or management is not contacted by a family member or other personal representative of the deceased unit owner, then the board or management has some authority to act.
The association’s declaration and bylaws and the Illinois Condominium Property Act obligate the board to take necessary steps to protect the unit in question, other units and the common elements from damage. In this regard, the board has the authority to enter the unit following reasonable notice to either any emergency contact person (if available), any known alternative address for the deceased or even by posting a notice on the door that the association is going to enter the unit to inspect and ensure that the unit is secure and utilities are functioning in order to protect the overall property.
If no emergency contact is available and the board has to enter the unit, they should make sure that any attempted entry into the unit is not done with only one person present, but is witnessed by a several other individuals so that witnesses can attest that neither damage was done to the unit nor items of personal property removed. Some boards or management companies even ask local law enforcement to accompany the entry as an added protection.
Furthermore, upon the death of a unit owner, the assessments and other obligations to the association continue and are the responsibility of the estate or often family membesr to maintain compliance. Hopefully, an executor, trustee or personal representative of the deceased unit owner’s estate will step forward and act on behalf of the unit and the decedent’s estate in maintaining the unit and otherwise following the association’s governing documents.
Q. Our condominium board has requested the association’s accountant to perform an audit of the association’s books, records and accounts for our prior fiscal year. The accountant or auditor requested that the association’s attorney review the association’s records and files and provide an opinion as to various legal aspects of the association’s operation and administration. Is this typical or necessary?
A. Yes — in Illinois, when an association’s accountant or auditor is engaged to provide an audit of the prior fiscal year’s financial records, the auditor asks the board to instruct the association’s attorneys to provide the auditor with information concerning significant legal consultation or representation that the association has received from the attorneys. This request includes information regarding pending or threatened litigation, claims and unpaid assessments.
The auditors need to know the nature and status of any litigation, how the association intends to respond or defend any lawsuits or claims and the likelihood of an unfavorable outcome and/or the range of potential monetary damages. The auditor will also want to know if there was any pending or threatened litigation in which the association’s attorneys were not engaged which usually means that the association’s insurance carrier is handling the defense of a lawsuit. The auditors also request whether there are any outstanding attorney’s fees and costs due to the association’s attorneys as of the end of the fiscal year.
The attorney’s response to the auditor is limited to a specified period of time generally ending with the prior fiscal year. The information received by the auditors from the association’s attorneys is often included in the overall auditor’s report to the board for that particular year.
• Matthew Moodhe 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.