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Editor’s note: this series of questions and answers are being provided to you in an effort to show that ‘we are not alone” and that many of the problems we face at home, are the same as in other parts of the state, or in this case, country.
Board should budget time to hear owners
However, no formal meeting is required
CONDOMINIUMS
BY MARK PEARLSTEIN
September 14, 2008
Question: Please clarify whether a board must hold a meeting of owners to discuss the budget before formal adoption. The Condominium Act requires the same notice to owners for budget adoption as for membership meetings—10 to 30 days. Yet the statute describes the notice as one for a meeting of the board.
Is a board required to hear unit owner comments about the budget?
A: No. The board is not required to hold a meeting of unit owners to hear their comments on the proposed budget. It is not prudent, however, for a board to ignore owners' views. It should consider holding a unit owner comment period and review any written objections to the budget before meeting to adopt it.
The Condominium Act states that the board must distribute a copy of the budget to the owners 30 days before an adoption meeting. Notice of that meeting must be sent to the owners 10 to 30 days in advance. These two statutes essentially give owners time to consider the budget and provide comments to the directors. The directors should include an explanation of line items in their budget message.
Question: We closed on our condo in February 2007, but received a notice of a contractor's claim for a lien in June. We contacted our title insurance company, which acknowledged the claim and advised us that there is nothing to do unless we receive a summons and a lawsuit.
Is there any additional information on what a homeowner should do in this situation?
A: You received the proper guidance from your title insurance company.
Under the Condominium Act, unit owners are not liable for contracts made by a developer after the closing. For contracts made before the closing, the developer must supply to the buyer a waiver of lien or title insurance to cover the claim. You should have protection from your developer's title insurance or the additional title insurance you purchased when you closed.
I question the validity of the claim for lien because it does not state when the work on your unit was completed.
Question: Water issues are the bane of multilevel condo owners and boards. I gather that boards must do all in their power to eliminate the hazards of overflow to units below.
Is it too invasive for a board to require an inspection of plumbing fixtures and fittings in every unit to ensure there are no leaks? If it is unreasonable for the person who sustains water damage to file a claim with their insurance company, who decides what vendors to use to determine the source and remedy of a leak? Who chooses the contractor to repair the damage? If two owners cannot agree on a vendor, how do they resolve this dispute?
A: It is invasive for a board to inspect every unit. The board has a legal basis to conduct an inspection when there is evidence that water infiltration has arisen from a particular unit.
The board and the managing agent should determine the source and remedy of a leak that travels between units and common elements. The party who pays for the damage should determine the contractor for repairs and decorating. If the parties cannot agree on a contractor, the upstairs owner can pay a sum to the owner of the unit below who may choose a more expensive decorating vendor.
Mark Pearlstein is a Chicago lawyer who specializes in condominium law and is chairman of the legislative committee of the Illinois chapter of the Community Associations Institute. Write to him c/o Condominiums, Chicago Homes, 4th Floor, Chicago Tribune, 435 N. Michigan Ave., Chicago IL 60611. You may e-mail questions to realestate@tribune.com. Sorry, he can't make personal replies. Answers will be supplied only through the newspaper.
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