Buying a condo in River North is exciting, but the Illinois 22.1 disclosure can feel like a dense packet of numbers, rules, and legal terms. You want a great home and a smart investment, and the 22.1 is your chance to confirm both. In this guide, you will learn what the disclosure is, how to review it, common red flags in downtown Chicago buildings, and a step-by-step plan to move forward with confidence. Let’s dive in.
What an Illinois 22.1 disclosure is
An Illinois 22.1 disclosure comes from the Illinois Condominium Property Act, often cited as 765 ILCS 605/22.1. It requires condo associations to provide key information to buyers in a resale so you can understand financial health, rules, insurance, and any pending risks before you close.
In practice, you receive a resale certificate or resale package from the association or its manager. This packet is central to your due diligence. It helps you and your attorney decide whether to proceed, negotiate credits, or adjust your timing and contingencies.
What a complete 22.1 package includes
While formats vary by association, you should expect most of the items below. Many associations charge a fee to prepare the package.
- Association basics: name, address, contacts, and management details
- Current monthly assessment for the unit and whether the account is paid up
- Approved or pending special assessments, purpose, and amounts
- Current budget and recent financial statements
- Reserve fund balance and any recent reserve study
- Insurance summary for the master policy and deductibles
- Pending lawsuits or claims, liens, and foreclosures
- Declaration, bylaws, rules and regulations, and amendments
- Recent board meeting minutes and summaries of major issues
- Management agreement and key vendor contracts
- Parking and storage information tied to the unit and any separate fees
- Any transfer policies, right of first refusal, or buyer approval steps
- Code violations, municipal orders, or open permits
- Unit-specific details like meter information and keys or remotes
If the building is older or a loft conversion, request engineer or inspection reports, elevator reports, and any roof or façade evaluations. If the unit is tenant-occupied, ask for any current lease.
How to review your 22.1 step by step
A focused review protects your purchase and your financing. Work with an Illinois condominium attorney and stay on top of deadlines in your contract.
Financial health review
- Look for balanced operating budgets and positive cash flow. Repeated deficits suggest issues.
- Check the reserve fund. Compare the balance with expected lifecycle costs for roof, façade, elevators, HVAC, and windows.
- Review special assessments. Ask why they were needed and whether more are likely.
- Confirm the seller’s account is current and free of liens.
Litigation and claims
- Scan for lawsuits involving the association. Construction defect suits, large insurance disputes, or association loans can lead to assessments.
- Look for mechanic’s liens and open legal actions affecting common elements.
Insurance coverage
- Understand the master policy, including what it covers and the deductible amount.
- Confirm whether you must carry an HO-6 policy and any add-ons like flood coverage.
- Clarify whether improvements and betterments inside the unit are covered.
Rules, leasing, and use
- Read leasing and subletting policies, including rental caps or minimum lease terms.
- Note pet rules, smoking policies, and renovation approval steps.
- Confirm any buyer application, interview, or estoppel requirements and associated fees.
Management and governance
- Check whether the building is professionally managed and for how long.
- Review board minutes for sudden leadership changes or contentious issues.
- Look at management contracts for cost and length.
Building condition and capital needs
- Review minutes and reserve studies for planned projects and estimated costs.
- In high-rises, pay close attention to elevator, HVAC, waterproofing, and façade items.
- Note repeated water intrusion, leaks, or elevator outages in the minutes.
Unit-specific rights and inclusions
- Confirm what you are buying: parking stall, storage unit, or any exclusive-use elements.
- Clarify whether parking is deeded, assigned, licensed, or rented, and how fees are billed.
Occupancy mix and financing impact
- Ask for the owner-occupancy ratio. Some lenders consider high rental ratios a risk.
- If you need FHA or VA financing, confirm project eligibility early.
Local compliance in Chicago
- Look for references to Chicago’s façade safety requirements and any open city violations.
- Review open permits and whether repair projects are complete or in progress.
River North issues to watch closely
River North’s building stock includes high-rise towers and older loft conversions, which come with distinct review points in your 22.1 package.
- Façade safety and FISP: Chicago’s Façade Inspection and Safety Program requires periodic inspections on qualifying buildings. Check for recent reports, remedial work, and funding plans.
- Loft conversions: Older conversions can have unique mechanicals and shared systems. Look for past conversion fixes, structural notes, and any ongoing work.
- Water and storm events: Proximity to the river and downtown drainage patterns can lead to garage or lower-level seepage. Review past water claims and repair records.
- Parking specifics: Many buyers purchase units without deeded parking or buy a separate stall. Confirm whether a stall is included, how it is owned, and how fees are assessed.
- Short-term rental policies: Downtown associations often restrict or prohibit Airbnb-type rentals. Read the rules and minutes for any enforcement actions or pending changes.
- Property taxes and assessments: Cook County’s assessment cycles can change tax bills from year to year. Review prior tax history and consider a tax advisor if assessments seem high.
- City permits and violations: Look for open permits and violations with the Department of Buildings. Unresolved orders can lead to added costs.
- Amenity expectations: Doorman service, package rooms, gyms, and pools can increase monthly assessments. Verify what is included and budget accordingly.
Red flags in 22.1 disclosures
Not every issue is a deal-breaker, but the items below deserve extra attention.
- Low reserves with no recent reserve study
- Repeated or large special assessments tied to deferred maintenance
- Consistent operating deficits or rising receivables from owner delinquencies
- Extensive or costly litigation against the association
- Unusual management contracts that are long or non-cancellable
- Multiple unresolved code violations or open municipal orders
- Evidence of repeated water intrusion, elevator failures, or façade problems
- Rental restrictions that conflict with your plans
- High master policy deductibles that shift costs to owners
- High rental ratios that could limit lender approvals
Next steps and a buyer roadmap
Use this sequence to stay organized from contract to closing.
- Request the 22.1 resale package as soon as your contract is accepted.
- Hire an Illinois condo attorney to review disclosures and preserve legal rights.
- Read financials and board minutes, then request backup documents as needed.
- Order a general home inspection. For older high-rises or conversions, consider specialist reviews for façade, elevators, or structural systems.
- Verify insurance coverages, deductibles, and get HO-6 quotes.
- Confirm lender condo requirements and whether the project meets agency standards.
- Plan for any association approval process and timeline.
- Negotiate repairs, credits, or escrow based on findings, and adjust contingencies if needed.
Your 22.1 document checklist
Use this list to confirm your package is complete.
- 22.1 resale certificate with all statutory elements
- Declaration, bylaws, rules and regulations, and amendments
- Current budget and last 2 to 3 years of financial statements
- Reserve account statements and the latest reserve study
- Notices of any pending or recently approved special assessments
- Board minutes for the last 12 to 24 months
- List of pending or threatened litigation and claims
- Management agreement and major vendor contracts
- Master insurance summary and declarations, including deductibles
- Building reports: engineer, elevator, roof, façade, and any required city façade documentation for qualifying buildings
- Parking and storage rights tied to the unit, including deeds, assignments, or licenses
- City of Chicago permits, violations, and compliance notices
- Any lease agreements if the unit is sold subject to tenancy
How to use your findings
Your 22.1 review should help you decide if the numbers, rules, and physical condition align with your goals. If you uncover risks, you can ask for clarifications, add protections to your contract, or negotiate price or credits. If the package shows strong reserves, clean minutes, and clear plans for capital work, you can move forward with greater confidence.
Buying in River North is about both lifestyle and long-term value. When you pair a careful 22.1 review with a solid inspection and smart financing, you put yourself in a strong position to enjoy your home and protect your investment.
Ready for hands-on help reviewing a 22.1 or planning your purchase timeline in River North? Connect with the downtown condo specialists at Vikes RE for a personalized consultation.
FAQs
What is a 22.1 disclosure in Illinois condo resales?
- It is a legally required set of disclosures from the association that covers finances, rules, insurance, litigation, and other facts you need to evaluate risk before closing.
How long does it take to get a 22.1 package in Chicago?
- Timelines vary by association and manager. Order it immediately after contract acceptance so you and your attorney have time to review and keep contingency deadlines on track.
What is a healthy reserve fund for a River North building?
- There is no single right number. You want reserves and a recent reserve study that align with the building’s age, systems, and planned projects noted in minutes or engineer reports.
How do short-term rental rules affect condo buyers downtown?
- Many downtown associations restrict or prohibit short-term rentals. Review rules and minutes closely, since noncompliance can lead to fines and impact resale and lending.
What if the 22.1 shows a pending special assessment?
- Ask for details on cost, scope, and timing. You can negotiate credits or escrows, adjust closing timing, or add protections to your contract based on the association’s plan.
Do lenders require condo project approval for River North units?
- Many lenders use agency standards that look at project finances, litigation, insurance, and occupancy mix. Check with your lender early to confirm requirements and eligibility.