Is Your New Property Assessment Fair?

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Written by George Relias, Relias Law Group, Ltd.

Category: What We're Thinking About Lately...

Published: 23 July 2018

Post Sposored by Relias Law Group, Ltd.
150 S. Wacker Drive, Suite 1600
Chicago, IL 60606
(312) 428-3016 Office

Allow me to introduce my firm. Relias Law Group, Ltd. is a boutique law firm concentrating on real estate tax appeals and assessment law. This is our first contribution to the Chicago Condo Resource blog. We hope to contribute regularly with information regarding news that impacts your real estate taxes.

The city of Chicago is undergoing its regular triennial reassessment. As such, ALL properties in the city of Chicago will receive new assessed values that will be used in calculating your 2018 real estate taxes payable in 2019. The townships receiving reassessments are as follows:

As you can see, the average value change varies greatly from township to township. It is important to review your assessed value immediately when it is issued to determine if your assessment is fair. Excessive assessments will result in the property owner paying an unfair portion of the real estate taxes. The appeal window before the Cook County Assessor is only open for 30 days from the time assessments are published. A “second chance” to appeal your assessment before the Cook County Board of Review will occur later this year.

Of the city of Chicago townships, currently only Jefferson Township is open for appeals. Lake, North, South and West will be opening in the upcoming weeks. If you need help in determining if you assessment is excessive, please contact us at (312) 428-3021. If you have missed the deadline or your property is located in the suburbs, contact us anyway. We may be able to fight the assessed value before the Board of Review. No one should pay more than their fair share of the county’s tax burden.

How Your Condo Association Can Make or Break Your Unit Sale

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Written by Lauren Peddinghaus

Category: What We're Thinking About Lately...

Published: 18 July 2018

In the summertime, property sales seem to heat up along with the weather. At HausFS we see an increase in condo unit sales this time of year.

If you are listing your unit for sale and expect that a mortgage will be required of the buyer, you should be aware of a few red flags that could prevent financing in your association:

• More than 10% of units owned by the same entity.

For investor owners in certain buildings, buying up more than one unit could be a profitable option. But if a single owner owns more than 10% of the total number of units in the building, everyone else could face a problem if they wish to sell. 

• No current operating budget

If your association has not approved an annual budget for the current year, lenders may reject a mortgage for your buyer. Your association should pass a budget every year.

• Budgeted reserves contribution less than 10% of overall budget

Your annual budget should show a reserves contribution that is equal to or greater than 10% of the total budgeted income for the year. This is a specific criteria that lenders review for certain types of mortgages.

• Association is in litigation

If your association is named as a plaintiff or defendant in a lawsuit and currently in litigation, owners may find it hard to sell. This is particularly true if the lawsuit is related to structural problems in the building (often inherited from a bad developer). 

• Owner delinquencies exceed 15%

If more than 15% of the total units in your association are delinquent on assessments, this often must be resolved before a lender will green light a mortgage for a buyer.

Owners who are looking to sell should be aware of these potential pitfalls before they list a unit and enter into any purchase contract. Discovering problems after an offer has been accepted means wasted time and money for all everyone involved in the transaction.

Have Unknown Renters in Your Condo Building? Law Requires Delivery of Lease Copy

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Written by Lauren Peddinghaus

Category: What We're Thinking About Lately...

Published: 03 July 2018

Seeing unfamiliar residents in your small condo building? If you are a board member, you have a legal right to know who is occupying every unit.

Section 18(n) of the Illinois Condo Act requires an owner to deliver a copy of a lease to the association board not later than the date of occupancy or 10 days after the lease is signed, whichever occurs first.

Your association may have additional Rules & Regulations affecting rentals, but this requirement applies to every association. If there are units in your building that are not owner-occupied, the board can demand a copy of a lease in accordance with condo law and apply fines if the owner does not comply.

If your association is concerned about excessive rentals, you may want to consider an amendment to restrict leasing.

Assessment Notices for Jefferson Park Township Condos Coming July 5th

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Written by Lauren Peddinghaus

Category: What We're Thinking About Lately...

Published: 25 June 2018

All Chicago area condominium properties will be re-assessed in 2018. Cook County properties are assessed every three (3) years. This year's tri-ennial assessment will determine 2018 taxes due in 2019.

Chicago homeowners can expect to pay more in real estate taxes in 2018 - $110 on average - than last year. This increase is a bit lower than 2017 taxes, which went up about 10% overall. For taxes payable in 2019, homeowners can expect further increases.

Cook County condo buildings can appeal an assessment increase as an association. This is generally more successful than appealing individually. See our preferred Vendor List for attorneys that handle Property Assessment Appeals.

Assessment for Jefferson Park Township (comprised of: Jefferson Park, North Park, Albany Park, Irving Park, Avondale, Hermosa, Belmont-Cragin, Montclare, Portage Park, as well as parts of Forest Glen, West Ridge, Lincoln Square, North Center, Logan Square, West Town, Humboldt Park, Austin, Dunning, the suburb of Norridge, the suburb of Harwood Heights, and Norwood Park) will be mailed out July 5th, with an appeal deadline of approximately August 3rd.

A complete list of scheduled assessment mailing dates and appeal deadlines can be found on the Cook County Assessor's website.