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This question came from one of our users:
Several states require individuals who own condominiums, homes, or townhomes to disclose certain information to prospective buyers. These disclosures include:
- Assessment status
- Rules and regulations
- Budget
- Reserve funding
- Status of any pending lawsuits
- Insurance coverage.
It is lawful for an owner or potential owner to have a look at the statements and audit the potential HOA for any fraudulent activity. This is protected under the Illinois Condominium Property Act. The ICPA is a state law governing the operation of condominiums in the state of Illinois – but remember, the ICPA covers more than just condominiums. A condominium, in this context, refers to the buyer or owner of a home.
The rules for HOAs in Illinois recently changed; in fact, the new rules took effect in 2023. These new rules allow homeowners to request and legally do a full audit of the HOA’s paperwork.
Illinois Governor signs a bill amending the ICPA – the new law includes: Information Requests must be fulfilled in writing and completed within 10 business days of the request. The fees collected for providing the requested information must not exceed $ 375, and the association can charge an additional $ 100 per rush service (HB5246).
The HOA board is required to maintain and keep records for this very reason. Overall, if you are willing to consider paying for an internal audit of your HOA, you absolutely have the right to request the legal documents. Pertaining to Section 19(a) of the Condominium Property Act and the ICPA.
Designed for general information use only. The content above does not constitute legal advice or the formation of an attorney/client relationship.
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