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Legislative Updates

Illinois

Condominiums; Foreclosure

PA 96-1045(HB 5509), Effective Date: 7/14/2010.

This Act adds two paragraphs to the Code of Civil Procedure concerning assessments against common interest community units in judicial foreclosure.

One paragraph is added to the Condominium Property Act, 765 ILCS 605et seq. At 765 ILCS 605/18.5(g-1), the new paragraph states that a purchaser, other than the mortgagee, of a common interest community unit in foreclosure must pay the previous six months' unpaid assessments against the unit for the community's common expenses. The payment due is the amount of unpaid assessments that would have become due absent any assessment acceleration. The six-month period in question is measured back from the date on which a collection action is filed. If the assessments are paid during the action to enforce the assessments, the purchaser is not obliged to pay any assessments accrued prior to acquiring title. Finally, this paragraph requires that the notice of judicial sale concerning such a unit must include a statement of the purchaser's liability to pay accrued assessments under the terms of this section.

The Act also adds a paragraph to 735 ILCS 5/15-1507 concerning judicial sales. At 735 ILCS 5/15-1508(c)(1)(H-2), the new paragraph adds an additional element that must appear in a public notice of judicial sale. Under the new paragraph, notice that a unit in a common interest community is subject to judicial sale must include the statement required by 765 ILCS 605/18.5(g-1), notifying potential purchasers of their liability to pay accrued assessments.

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[Last update: 12-10-10]