Film crew wants to use association property

Q. Our association was recently approached by a film-production company that wants to film some scenes of a major motion picture in the common areas of our association. Several of our "star-struck" board members want to quickly sign the producer's agreement. I have suggested we have the agreement reviewed by counsel. Wouldn't that be appropriate?

A. There has been a proliferation of television shows and movies being filmed on location in Chicago and its surrounding suburbs, and many of these involve filming at associations. The typical agreement provided by a production company is sparse and one-sided. As a result, there are many issues an association's board of directors needs to address in an agreement with the production company before a property is "ready for its close-up!"

Security, insurance, indemnification, where and when the shoot will take place, identifying a local contact, payment to the association for the use of its property and for additional personnel costs, and a venue for disputes are just a few of the concerns that need to be covered in an agreement between the association and the production company. Even if the production company provides its own form of agreement, it should be reviewed by counsel for the association to make sure it includes appropriate protections for the association.

Q. I have a situation where my client is doing a bank-approved short sale of her unit. However, the president of the association refuses to issue a paid assessment letter and provide the current budget to the unit owner to give to a potential buyer. The president wants the unit to be foreclosed so she can buy it. What remedies does this unit owner have to force the president to provide the condominium documents necessary to close the short sale?

A. I am curious as to how you became aware of the board president's motive for not releasing the documents, as that is a "plan" one would not typically announce. That said, Section 18(I) of the Condominium Property Act provides that "upon 10 days notice to the manager or board of managers and payment of a reasonable fee, any unit owner shall be furnished a statement of his account setting forth the amount of any unpaid assessments or other charges due and owing from such owner."

Section 22.1(a) of the act provides a description of the documents and information that the board of managers must make available for inspection to the prospective purchaser, upon demand. And unnumbered paragraph of Section 18.4 of the act provides that "in the performance of their duties, the officers and members of the board, whether appointed by the developer or elected by the unit owners, shall exercise the care required of a fiduciary of the unit owners." Several appellate court decisions have underscored that failure to follow an association's governing documents and the law is a breach of fiduciary duty.

As far as remedies, the owner could file suit seeking a court order requiring the board to issue the required documents in connection with the sale of the unit. The association has liability for damages should the sale not go through as the result of the association's failure to provide the statement of account or resale documents. If the board president's motives are truly as suggested, the board president could be susceptible to a significant punitive damages award, and punitive damages are not typically covered by insurance.

Q. Can a unit owner see an association's reserve study on demand?

A. The association's reserve study is not among the books and records expressly required to be made available to a unit owner for examination and copying. It would be within the board's discretion to provide the reserve study to an owner. Of course, the speculation as to what is in a reserve study that is being withheld may create a storm of controversy not worth the denial.

• 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.