Legal Question in Real Estate Law in Illinois

I own a townhouse that I lease to two tenants. During the first year of the lease, the homeowner association, with prodding from the management company, adopted new rules regarding leases that added new requirements for new leases. These requirements include certain documentation and a fee for each lease and renewal. The adopted rules exempted existing leases, of which mine was one, but did not address whether renewals of those lease would be subject to the new requirements. I attended the board meeting at which the new rules were adopted and asked for clarification of this issue. I received no answer. Since then, I have renewed the lease four times with the same tenants, and when asked for the required documentation and the fee, I explained that my lease was in effect prior to the adoption of the new rules, and therefore not subject to them according to the paragraph in them that exempts existing leases. The management company has accepted this reasoning until now. For the last renewal, they are demanding the fee, but not the other items listed in the requirements. Does the management companies failure to collect the fee in the past constitute a waiver of their right to do so now?


Asked on 12/11/12, 1:37 pm

1 Answer from Attorneys

You can try to argue that they have waived the requirements based on prior conduct but the practicality is that you may not get anywhere even if you are right. Be happy they are grandfathering in the lease. If they take a hard line, it could jeopardize everything, lead to legal battles, and more. Of course, if you comply now and later the rule tightens you might not be able to continue to lease the unit. It may be a catch-22 but you need to assess how much out of pocket and push-back you want currently. The more important issue is continuity of the grandfather, which I might want to get in writing.

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Answered on 12/11/12, 6:40 pm


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