Illinois 22.1 Disclosure Form for Condo Resales: Contents and Fees

The Illinois 22.1 disclosure form is the packet of association records a condo seller must obtain from the board and make available to the buyer before a resale closes. It is required by Section 22.1 of the Illinois Condominium Property Act (765 ILCS 605/22.1), and once the seller sends a written request, the board has 10 business days to deliver the complete package.¹

The duty applies to any resale by an owner other than the original developer. The seller does not fill the form out personally. The statute puts the obligation on the association’s principal officer or a specifically designated officer, and in practice the property management company assembles the package.

What Must Be in the Package

Section 22.1(a) lists nine categories. Some are copies of existing documents; others are statements the board has to prepare specifically for the sale.

Governing Documents

The package must include the declaration, the bylaws, any other condominium instruments, and the current rules and regulations.¹ Whoever prepares the packet should confirm every recorded amendment is included. Handing over an outdated declaration that omits, say, a recent leasing restriction can give a buyer grounds to argue the association waived enforcement against the new owner.

Financial Statements

A statement of the seller’s account showing any unpaid assessments or other charges currently owed on the unit. Title companies use this figure to clear association liens at closing.¹
A statement of anticipated capital expenditures for the current and next two fiscal years. “Anticipated” is deliberately broad. If the board knows a roof or elevator project is coming, it belongs on the form even without a formal vote, because the point of the section is to put buyers on notice of financial obligations before they commit.²
A statement of the amount in the reserve-for-replacement fund and whether any portion has been earmarked by the board for a specific project.¹
A copy of the association’s financial statement for the most recent fiscal year available. The statute does not separately require the current operating budget, though many associations include one.¹

Litigation and Insurance

A statement of the status of any pending suits or judgments in which the association is a party. The statute does not require case names and docket numbers, but including them is common practice.¹
A statement of the insurance the association carries on behalf of all unit owners. Buyers and their lenders use this to verify underwriting requirements and decide what individual coverage to add.¹

Compliance Statement and Contact Information

The final two items are easy to overlook. The package must include a statement that any improvements or alterations made to the unit or its limited common elements by the prior owner are believed in good faith to comply with the condominium instruments. It must also list the name and mailing address of the association’s principal officer or the designated agent for receiving notices.¹

How to Request the Package

The seller, usually through the seller’s real estate attorney, sends a written request to the association’s principal officer or designated agent. No particular format is required, but the request must be in writing. The 10-business-day clock starts when the association receives it.¹ Send the request as early in the transaction as possible; the window is short and the packet often affects lender review.

There is no state-issued template. Most management companies use their own forms, and quality varies. If the disclosure you receive is thin or uses vague language that technically checks each box without saying much, the buyer’s attorney can go back to the board for clarification.

Fees the Association Can Charge

The association may charge the seller a reasonable fee capped at $375 for the direct out-of-pocket cost of providing and copying the information. An additional $100 may be charged for rush service completed within 72 hours.¹ The statute provides for annual adjustments to the $375 cap beginning one year after the effective date of the 102nd General Assembly’s amendment to this section, so the current ceiling may be slightly higher. The cost is typically a seller closing expense.

If the Association Misses the Deadline or Gets It Wrong

The statute imposes the 10-business-day deadline on the association but does not spell out a specific penalty. In practice a missing or delayed packet stalls the closing, because the buyer’s attorney and lender will not sign off without it. If the board refuses to respond, the seller may need counsel to compel compliance, and courts have generally treated the deadline as a firm obligation on the association.

Errors carry real exposure for the association and its management company. A buyer who closes and then discovers an undisclosed special assessment or a major capital project omitted from the anticipated-expenditure statement may have a claim against the association for the shortfall. Vague hedging on the capital-expenditure line can backfire: if the board knew a project was coming, leaving it off is harder to defend than disclosing a good-faith estimate that later proves imprecise.

Right of First Refusal

Some condominium declarations give the association a right of first refusal, letting the board buy the unit on the same terms as the buyer’s accepted offer before the sale closes. Section 30(e) of the Illinois Condominium Property Act addresses this right, but the specific procedures and timelines come from the individual association’s governing documents. The board usually has a defined window, often 10 to 30 days, to exercise the right or issue a written waiver, and if it does not act within that window the right is waived automatically.

This is not part of the Section 22.1 disclosure itself, but it is worth flagging early. As soon as the packet arrives, the buyer’s attorney should check the declaration to see whether a right of first refusal applies and how much time it could add before closing.

Non-Condo Common Interest Communities

Section 22.1 applies only to condominiums. Townhome and homeowner associations that are common interest communities but not condos are governed by a parallel disclosure under the Illinois Common Interest Community Association Act (765 ILCS 160/1-35(d)). That version covers largely the same ground, gives the board 30 days rather than 10 business days to respond, and does not include the same fee cap.³ If the property being sold is not a condominium, work from that statute instead.

1
Illinois General Assembly. 765 ILCS 605/22.1
2
CAI-IL. Association Disclosures Under Section 22.1 of the Illinois Condominium Property Act
3
Illinois Department of Financial and Professional Regulation. Common Interest Community Association Act