Legal Question in Real Estate Law in Illinois

You need to look at your condominium documents (and possibly the property report if any for new construction under which you purchased the unit), but most likely you're not going to be able to force the developer to sell, and most likely it's not misrepresentation - every developer makes "best efforts" to sell and that generally doesn't mean taking a loss in a bad market AND remember the lender has to approve EVERY sale. If anything the construction lender is pulling the strings. As long as the developer is managing the association in accordance with the bylaws, you may be SOL BUT: what are the rental provisions of the declaration and by-laws. If the developer can rent as many units as it wants, that's one thing. If it is limited by its own by-laws, then it would have had to have amended them through formal action (also set forth in the declaration). As to any other remedy, you might find it in your purchase agreement but usually your contract rights disappear at closing and you are left with your rights as just another condo owner, your rights under your deed and title policy, and warranty if any. If you feel after reading the condominium documents in particular that the developer is breaching its fiduciary obligations to you and the other people who bought units in the way it is renting units out, however, this is something you will have to take to an attorney. Otherwise, like most people who bought at the height of the market, this is not a great time to sell regardless. And then again what would you like? Units sold at auction pricing that is half of what you purchased for? That is the reality of the marketplace. The developer may be doing you a huge favor by not selling at prices that would significantly put you "upside down" with your own loan -- so you may want to look at the loan you took out when you bought, if you did, because if you want or need to refi and values are below your loan amount, that will be a huge problem for you. There is a federal program, however, in place that you may (depending on other factors) be eligible for that could potentially reduce your loan now, unless it's an FHA loan, since there are limits on the # of such loans allowed at any one time in a given project.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is currently licensed to practice law only in the State of Illinois. Responses are based solely on Illinois law unless stated otherwise.