Buying a Chicago Condo? Check These 5 Things Before You Make an Offer

When you fall for a condo, it's easy to focus on the stuff you can see: the view, the kitchen, the in-unit laundry. But with a condo you're not just buying a home. You're buying into an association, its budget, its building and its to-do list.

I've helped Chicago-area buyers through a lot of condo deals, and the ones that go smoothly almost always have one thing in common: the buyer looked at the association's numbers early. Here's what I tell my own clients to check.

1. The monthly assessment, and what it actually covers

Two buildings with the same assessment can be very different deals. One might include heat, water, cable, internet and a doorman. Another might cover water and the common-area light bulbs and not much else.

Before you compare units, ask for a simple list of what the assessment includes. Then add up what you'd pay separately (heat, gas, electric, parking, storage) so you're comparing real monthly costs, not just the sticker number.

Also ask how the assessment has changed over the last few years. Steady, modest increases are normal. A big jump, or no increase for many years, is worth a follow-up question.

2. Special assessments: current, approved and "being discussed"

A special assessment is a one-time (or multi-year) charge on top of your regular assessment, usually for a big project like a roof, masonry, windows or an elevator.

Under the Illinois Condominium Property Act, owners must get notice of board meetings where a special assessment is adopted, and if a budget or special assessment pushes the year's total assessments above 115% of the prior year, owners holding 20% of the votes can petition for a vote. But assessments for emergencies or for work required by law can be adopted by the board without owner approval, and boards can spread a special assessment over more than one year. (765 ILCS 605/18)

What that means for you: ask three separate questions. Is there a special assessment right now? Has one been approved but not yet billed? Is one being discussed? Your contract and your attorney can then address who pays what.

3. The 22.1 disclosure: Illinois' condo "information packet"

When an owner resells a condo in Illinois, Section 22.1 of the Condominium Property Act requires the seller to get certain documents from the association and make them available to the buyer on request. The list includes (765 ILCS 605/22.1):

• The declaration, bylaws and rules
• A statement of any liens, including unpaid assessments and other charges on the unit
• Capital expenditures the association expects in the current or next 2 fiscal years
• The status and amount of the reserve fund, including money earmarked for specific projects
• The association's financial statement for the last fiscal year available
• Any pending lawsuits or judgments involving the association
• What insurance the association provides for unit owners
• A statement that the seller's improvements or alterations are believed to comply with the condo rules

The association has 10 business days from a written request to provide it. And under a recent amendment taking effect January 1, 2027, the packet also includes a copy of the association's collection policy.

This packet usually arrives during attorney review. Read it, and go through it with your attorney and me.

4. Reserves, the budget and the building's to-do list

The 22.1 packet gives you the reserve balance and planned capital projects. Put those side by side. If the building expects a big project in the next two years and the reserves won't come close to covering it, that gap usually gets filled by a special assessment, a loan or higher monthly assessments.

Look at the budget, too. Does it set money aside for reserves every year? If the association has a reserve study, ask for it. And if you can get recent board meeting minutes from the seller, skim them. Minutes are where you'll spot recurring topics like leaks, facade work or insurance renewals before they turn into line items.

5. Rules that affect how you'll live there

The declaration, bylaws and rules come with the packet, but don't wait until the end to ask about the ones that matter to you: leasing rules (if you might rent it out someday), pet rules, parking and storage, move-in fees and reservations, and any limits on renovations like flooring.

Insurance is part of this, too. The packet tells you what the association's policy covers. Share it with your insurance agent so your own condo (HO-6) policy fills the gaps.

The bottom line

None of this should scare you off a condo. Lots of buildings are well run and well funded. The point is to know what you're buying before your attorney review period ends, not after closing.

If you're thinking about buying a condo anywhere in Chicago or the suburbs, call or text me at 312.882.9797. I'll help you ask the right questions, read the numbers, and write an offer that protects you. And if you're selling, I'll help you get your association documents ready early so buyers feel confident. Full-service real estate, lower commission.

This article is general information, not legal advice. For questions about a specific contract or disclosure, talk with a real estate attorney.