Requirements to add management fees to delinquent owner's accounts

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Written by Alexa Jackson

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

Published: 11 November 2016

It is not uncommon for a management company to charge their own fees on the ledgers of a delinquent condo owner's account when collecting unpaid assessments. Courts are now reviewing account ledgers with scrutiny so it is important for associations to be aware of the legal requirements for collecting management-imposed fees on a delinquent account.

Both the Illinois Condominium Property Act and the Illinois Common Interest Community Association Act provide three requirements that must be met before a fee can be added to a delinquent owner’s account. The three requirements are:

1.      1. The managing agent fees relate to the costs to collect common expenses for the association

2.     2.  The fees are set forth in a contract between the managing agent and the association

3.      3. The authority to add the management fees to an owner’s respective share of the common expenses is specifically stated in the declaration or bylaws of the association

To read more, click here.

Electronic notice and voting in condominium associations

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Written by Alexa Jackson

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

Published: 31 October 2016

As of 2015, changes to the Illinois Condominium Property Act and the Illinois Common Interest Community Association Act allow associations to adopt electronic notice and electronic voting. This modernization of associations requires that the board pass Rules & Regulations to add these changes, but they do not need to be made in an association’s bylaws.

Once an association has created Rules & Regulations to allow for electronic noticing and online voting, the board can then take advantage of technology to send notices to owners and conduct association votes online for owners that have not opted out.

To learn more details and requirements, see this article from condo law attorney James Stevens of Chuhak and Tecson.

Learn how to properly adopt Rules & Regulations for your condo association with Chicago Condo Resource's "Creating Rules & Regulations Made Easy" videos. (Available to Subscribers only.)

The dangers of email communication for condo board members

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Written by Alexa Jackson

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

Published: 26 October 2016

Email has become one of the most common forms of communication in business. It is so ingrained in our everyday lives that we rarely consider the implications of email communication. However, emails can be tricky for condo boards in several ways. First, emails can be saved, stored and forwarded. Once something is emailed, it cannot be taken back and the message can live on forever. Second, unlike in person or telephone communication, it is difficult to gauge a person’s tone or intention from written communication. An email can easily be read in a way that it was not intended to be when it was written.

For these reasons, board members should limit discussion on specific matters to executive sessions where they can legally talk in person and off the record. These matters include:

1. Litigation
2. Hiring/firing employees
3. Rule violations
4. Unit owner’s unpaid assessments

If email must be used for an association-related reason, email communication with the association attorney should be avoided from a work email address. Such emails may not be considered private and as a result could be subpoenaed via your employer for litigation evidence. A good way to avoid problems is to create email accounts specifically for association or board-related communications.

Read more here.

Condo association snow removal contracts affected by new Liability Limitation Act

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Written by Alexa Jackson

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

Published: 19 October 2016

On August 25, the Snow Removal Service Liability Limitation Act became effective. This act voids certain indemnity agreements that are common in condominium association snow removal contracts.

The Act (which contains a lot of legal language) essentially limits liability provisions in snow and ice removal contracts relating to lawsuits arising from damages incurred as a result of the service. If your association has an existing snow and ice removal contract, your board should have it reviewed by a qualified condo law attorney.

For details on the language contained in the Act, click here.