Legal Question in Real Estate Law in Illinois
My mother owned a coop apartment in the Chicago area. When she died in January of 2009, ownership of the apartment passed to a trust; my sister and I are the beneficiaries, I am the trustee. Shortly after my mother's death I put the apartment up for sale, but due to the bad real estate market there have been no offers despite several price reductions. The apartment and the building are in good condition and in a very desirable location. For the past two years the apartment has been essentially vacant, but we are obliged to pay over $700 per month in assessment fees. Neither I nor my sister are in a position to occupy the apartment. I have tried to get permission to rent out the apartment but the board of trustees has refused. The lease agreement has provisions that would allow a sublease subject to the board's approval, but the board has steadfastly refused, citing the association rules and regulations. As the number of units for sale has increase, prices have continued to drop, and we are looking at the prospect of having to pay these fees for the next year or two. My view is that the board is unreasonable in rigidly enforcing its no-rent policy, especially in light of our circumstances. I have considered legal action to obtain permission to rent, but I am not sure what the possibilities are. Any advice would be appreciated.
1 Answer from Attorneys
Co-ops are dealing with the same issue that condos are - eliminating or restricting leasing. There are some valid ones, such as limitations that lenders require, and some less valid ones, such as keeping the "class" of the place up. Since you suggest there are others with the same issue, about the best you may be able to do is join forces and hope to change the board and/or leasing rules. Before you do anything, however, take the co-op's documentation (corporate charter, etc., rules, regulations...)with the apartment's proprietary lease to an attorney for review. If you are saying there is some kind of hardship clause, then there may be a way to force the board's hand. Being a co-op, however, expect a fight.
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