Buying or selling a condo in the Loop can move fast, and one document often makes or breaks the deal: the 22.1 disclosure. If you have heard the term but are not sure what it includes or why it matters, you are not alone. You want a smooth closing with no surprises, and that starts with understanding this packet. In this guide, you will learn what the 22.1 disclosure is, what it contains, timelines and fees, what to watch for in Loop buildings, and how to use it to protect your interests. Let’s dive in.
22.1 disclosure explained
The “22.1” disclosure comes from the Illinois Condominium Property Act, 765 ILCS 605/22.1. It requires the seller, or the condominium association upon request, to provide specific documents and information about the building and association to a buyer. The goal is to help you evaluate the association’s financial health, rules, insurance, and any issues that could affect ownership or monthly costs.
You might also hear “resale certificate,” “resale packet,” or “estoppel letter.” In practice, these terms get used together. The association typically provides most of the packet, and the estoppel letter confirms money owed.
What’s inside a 22.1 packet
Actual contents vary by building and management company, but most packets include the items below. Reviewing these carefully is essential for Loop buyers and sellers.
Financials
- Current annual budget and any recent revisions.
- Most recent balance sheet and income and expense statements.
- Current operating and reserve fund balances.
- Accountant-reviewed or audited statements, if available.
- Statement of unpaid assessments and any association liens.
Reserves and projects
- Any reserve study and assumptions.
- Schedule of major repairs or capital projects, such as façade work, roof, windows, boilers, or elevators.
- Details on recent or planned special assessments.
Assessments
- Current monthly assessment amount and what it covers, such as heat, water, trash, or cable.
- Pending or voted, but not yet levied, special assessments.
- History of special assessments over recent years.
Litigation and claims
- Notice of pending lawsuits or claims involving the association, common elements, or units.
- Status summaries if available, including potential exposure or insurance issues.
Governing documents and rules
- Declaration, plats, and recorded amendments.
- Bylaws and articles of incorporation.
- Rules and regulations, including rental or short-term rental policies.
- Remodeling and alteration rules and approval procedures.
Minutes and management
- Board and owner meeting minutes, often the last 6 to 12 months.
- Management agreement and contact info for the association manager.
- Onsite staff or engineer contact information.
Insurance
- Summary of the association’s master policy, coverage limits, and deductibles.
- What the association covers versus what unit owners must insure.
- Certificates of insurance and contact for the insurance agent.
Occupancy and unit-specific items
- Estoppel statement with assessment balances and amounts owed.
- Rental and sublease restrictions, and whether the unit is currently leased.
- Parking and storage assignments and transfer rules.
- Any recorded violations or open compliance issues for the unit.
Fees and administrative items
- Fee charged by the association or management to prepare the resale packet.
- Move-in and move-out policies, transfer fees, or capital contribution fees.
Key timelines and fees in 60604 practice
While exact requirements can change and building policies vary, here is what you can typically expect in Chicago high-rise transactions.
- Packet delivery timing. Associations are often required to respond to a written request within a short statutory period that is commonly treated as 10 business days in practice. Larger buildings or those with board approvals can take longer.
- Buyer rescission window. Buyers usually have a short window after receiving the packet to cancel the contract. The length is often a few business days in practice. Always check the current statute and your contract.
- Fees for the packet. Associations usually charge a reasonable fee to prepare the packet. Costs vary by building, packet size, and rush requests. In local practice, the seller often pays, but contracts can allocate this cost either way.
- Who prepares what. The association or management company provides budgets, bylaws, minutes, insurance, and the estoppel letter. The seller and attorney may add deeds, seller disclosures, and lease documents if the unit is tenant occupied.
Delays most often happen when requests go in late, when the association requires board sign-off, or when older buildings have incomplete records. Build time into your timeline, especially in the Loop.
Seller checklist before listing in the Loop
Get ahead of questions by obtaining and reviewing the packet before you hit the market. For downtown condos, early prep reduces stress and protects your sale price.
- Request the full 22.1 packet 2 to 6 weeks before listing.
- Order an estoppel or payoff statement to confirm any amounts owed.
- Review the budget and reserve balances. If reserves are low or major projects are coming, prepare a clear explanation.
- Ask management about any planned or pending special assessments.
- Confirm rental limits, short-term rental policies, and whether current leases comply.
- Check for unit violations or pending enforcement actions.
- Gather your unit documents, including permitted plans, warranties, and receipts.
If there are major items such as litigation or a large special assessment, consider providing an explanatory cover page with the packet. Clear context reduces the risk of confusion and renegotiation later.
Buyer review guide for Loop condos
When you receive the 22.1 materials, focus on the essentials first, then dig deeper where needed.
- Budget and reserves. Are reserves adequate compared with building age and systems? Are they funding as planned?
- Special assessments. Identify current, pending, and recently approved assessments. Understand amounts, timing, and purpose.
- Litigation. Look for lawsuits tied to structural issues, developer disputes, or insurance claims that could lead to assessments.
- Minutes. Read the last 6 to 12 months for deferred maintenance, vendor disputes, or repeated complaints.
- Insurance. Note coverage limits and deductibles. Large deductibles may shift more cost to owners after a loss.
- Rules. Confirm pet policies, rental caps, and short-term rental rules if you plan to rent later.
- Parking and storage. Verify what transfers with the unit and whether parking is deeded, limited common element, or licensed.
Red flags that warrant deeper review include repeated operating deficits, significant planned projects with low reserves, multiple or ongoing litigations, large insurance deductibles, and minutes that show recurring building issues or management turnover.
Questions to ask include whether a recent reserve study exists, how the board plans to fund near-term projects, and if there is a code compliance history you should know about, especially for façade and life-safety items in older buildings.
Loop-specific pitfalls to watch
Downtown buildings have unique characteristics that can impact your bottom line.
- Building age and systems. Many Loop buildings face façade restoration, terra cotta or window replacement, boiler and elevator upgrades, or plumbing stack work.
- Major exterior projects. Envelope, roof, and façade work can lead to sizable special assessments.
- Historic or landmark status. Additional approvals can add time and cost to projects.
- Parking and storage. Spaces may be limited, separately owned, or subject to distinct transfer rules and fees.
- Rental and short-term rental policy. Many associations restrict short stays. Investors should confirm policies early.
- Developer turnover or conversion history. Newer conversions may have punch-list or warranty disputes between the developer and association.
- Lending and underwriting. Lenders review the packet too. Insurance gaps or litigation can slow loans, so share documents early.
Smooth closings: timeline tips
A little planning goes a long way in the Loop.
- Sellers. Order the packet 2 to 6 weeks before listing. Resolve delinquencies, gather documentation for upcoming projects, and share a complete, current packet with buyers fast.
- Buyers. Review the packet immediately, then loop in your attorney, lender, and insurance agent. Ask management to clarify open items.
- Management coordination. Building managers often know about upcoming votes or assessments before they appear in minutes. Stay in close contact.
- Closing prep. Confirm whether payoff of any arrears is required at closing and obtain estoppel details early for the settlement statement.
Partner with a local advocate
Understanding the 22.1 disclosure gives you leverage. As a seller, you present a clear, confident story about your association. As a buyer, you spot risks and plan for costs. If you want help sourcing, reviewing, or explaining a resale packet for a Loop condo, our team is here to guide you from first questions to closing. Reach out to Chicago Home Partner to get a clear plan tailored to your unit or building.
FAQs
What is an Illinois 22.1 disclosure for condos?
- It is a resale packet required by 765 ILCS 605/22.1 that gives buyers key association documents and information on finances, reserves, rules, insurance, and litigation.
How long does a condo association have to provide a 22.1 packet?
- In practice many associations aim to respond within about 10 business days of a written request, but verify timing against the current statute and your building’s procedures.
Can a buyer cancel after reviewing the 22.1 disclosure?
- Buyers often have a short rescission window after receipt, commonly a few business days in practice, subject to the contract and current law.
Who pays for the 22.1 resale packet in Chicago?
- The association typically charges a reasonable fee. Local custom often has the seller pay, but the purchase contract can allocate the fee to either party.
What Loop-specific issues should I look for in the packet?
- Watch for façade or exterior work, elevator or boiler upgrades, large deductibles on insurance, litigation, and reserve funding that does not match near-term project needs.
Are short-term rentals allowed in Loop condo buildings?
- Policies vary by association, and many buildings restrict short stays. Review the rules and regulations in the packet and confirm with management.
What is an estoppel letter in a condo sale?
- It is a statement from the association showing the unit’s assessment balance and amounts owed, which the title company uses to ensure accurate payoff at closing.
