Owners can serve on board prior to paying off unit

Q. I purchased a condominium unit from a relative some time ago, and I have been an active member and resident of the association. The purchase is being accomplished by an installment contract, so I won't have a deed to the unit for several more years. The board has approached me about running for the board. However, a debate is raging as to whether I can serve on the board as a contract purchaser. Can I serve on the board at this time?

A. The purchaser of a unit pursuant to an installment contract for purchase has the right to vote for the members of the board of the association and to be elected to and serve on the board. Unless the seller of the unit expressly retains in writing any or all such rights, you would be able to serve on the board as a contract purchaser. You would need to provide proof to the board that you are the purchaser of the unit under an installment contract - also known as articles of agreement for deed.

Q. The board of our condominium is planning on adopting a special assessment. The board would like it payable over the next two years. Can the board adopt a special assessment payable over two years, or must it be paid in the current fiscal year?

A. Both the Illinois Condominium Property Act and the Illinois Common Interest Community Association Act provide that the board can adopt a multiyear special assessment. Note that the entire amount of the multiyear special assessment is deemed considered and authorized in the first fiscal year in which the assessment is approved by the board.

Q. I closed on the purchase of a condominium unit. Several months later, a vote of the owners was called to sell the entire building under Section 15 of the Illinois Condominium Property Act. The owners voted to sell the entire building. I have since learned there were ongoing negotiations between the association's board and the purchaser of the building before I purchased my unit. None of this was disclosed to me as a prospective purchaser, and this information might have influenced my purchase decision. Was the association required to disclose this to me as a prospective purchaser.

A. Section 22.1 of the Illinois Condominium Property Act identifies what must be disclosed to a prospective purchaser of a condominium. A potential sale of the entire condominium is not among the issues that are required to be disclosed by the association to a prospective purchaser.

That said, no later than once a contract has been voted on and approved by the owners to sell the entire condominium, it would seem appropriate for the association to disclose this information to prospective purchasers.

Q. I am on the architectural control committee of my homeowners' association; however, I am not a member of the association's board of directors. The committee makes decisions regarding owner requests for changes to their homes. An owner whose project was denied is now threatening to file suit against the association and the members of the architectural control committee. Would members of the committee have any coverage under the association's insurance policy?

A. The association's directors' and officers' insurance frequently provides coverage for committee members. You should contact the association's insurance agent/broker for written confirmation that the association's directors' and officers' liability insurance covers committee members, or that an endorsement can be obtained for such coverage. You should also speak with your own insurance agent about what coverage you may already have or that you may be able to acquire as additional protection.

• 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.