Legal Question in Real Estate Law in Illinois

I purchased a townhouse in 2006 and closed in 2007. I asked about the by laws for the homeowners association prior to closing and the builde's staff said we do not have to worry about it as the builder is maintaining the property until 75% of the units are sold.

There are 17 units and 2 vacant lots. The builder sold 11 and has six unsold. The builder was in complete control and recorded by laws in 2006 but did not provide them to any of the homeowners prior to closing. Since 75% are not sold and the 3 year period came in late October, he called a meeting of the homeowners and gave us the bylaws. All directors consist of the builders ( both brothers) and another name I do not recognize but obviously works and/or is related to the two borthers as all addresses are the same in thier office.

The builder put 31,900 into the oprating budget for the association budget but gave us copies of the front of checks in that amount with promissory notes in the maount of 44,000 plus 7% interest due September, 2009. He said he was not asking for it now but reserves the right to call them due upon request. To date, there is about $,4000 turned over to us and about $6, 000 in bills. The bylaws which we were never given until the turnover date states that the declarent is exempt from paying assessments on the unsold units. It further states that 60% of the voters is required to amend the bylaws and he reserved the right to refuse such amendments. It further stats that the association must maintain the common areas including his unsold properties without the assessment income from his unsold units. The management company who he hired and was charging the association 300-500 more than all quotes we are receiving is no longer managing our association and stated they would not continue with us developed the budget and suggested a 50% increase on each unit sold so we can have sufficient funds to operate.

What can we do to void the bylaws and develop our own since we never saw a copy of these prior to closing and not until the turnover date? There is not enough funds to even hire a lawyer to handle it for us.


Asked on 11/22/09, 3:26 am

1 Answer from Attorneys
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

The by laws are public record and were available to you at the recorders office even if the builder did not provide them to you at the time of closing. You need to hire counsel and have your initial purchase documents and the bylaws reviewed before anyone can give you an accurate opinion.

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Answered on 11/27/09, 7:41 am


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