Occasionally, a struggling condominium association will mention receivership and wonder if it is an effective solution to their chronic condo woes.

Receivership is when a property manager is ordered by a court to manage a dysfunctional condominium association. The administration and maintenance of the building is handed over to the manager, who is given the power to make all decisions for the building. The idea of giving up the responsibilities of running your association may seem attractive, but there are a number of reasons why receivership may not be right for your building.

  1. Receivership is expensive. The owners will need to take legal action to pursue receivership in court. If a receiver is appointed, the owners will have to pay the receiver as well as bear the burden of all of the building's expenses. This will increase the financial burden on the owners rather than alleviate it.
  2. You must prove your inability to manage your own building. A judge must be convinced that receivership is the only option, and that all efforts by the owners to manage themselves have failed. Apathy or a lack of involvement by owners is not a compelling reason for a judge to order a receiver.
  3. Owners give up control. Owners will no longer have the right to make any decisions about their own property. The loss of control in addition to increased expenses for receivership will likely lead mean a less desirable living experience, rather than an improved one. Just because someone else has the responsibility to make decisions doesn't mean you'll be happy with what they decide.
  4. Receivership has no time limit. The receiver will remain until the court is satisfied that the problems in the building have been fixed. There is no set timeline for how long a receiver has to fix what is broken.

Receivership should be considered a last resort. If you truly feel that you have no other option, you should consult a qualified condo law attorney for assistance.

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