Buying a Streeterville condo and staring at a thick stack of condo documents? The Section 22.1 disclosure can feel dense, but it holds the details that shape your monthly costs, future assessments, and resale value. You want clear, practical guidance so you can compare buildings confidently and avoid costly surprises. In this guide, you’ll learn what a 22.1 is, how to read each section, which red flags to watch for, and how to compare Streeterville high-rises side by side. Let’s dive in.
What is a 22.1 disclosure
A 22.1 disclosure comes from Section 22.1 of the Illinois Condominium Property Act. It is the resale information package sellers request from their association or management when a unit is under contract or preparing to transfer. The package includes governing documents, budgets, financials, insurance information, meeting minutes, and notices about special assessments or lawsuits.
You use the 22.1 to evaluate the building’s financial health, rule structure, upcoming projects, and any legal exposure. In Streeterville’s high-rises, where elevators, façade systems, and amenities drive costs, this package is essential for comparing buildings. Associations often charge a reasonable fee to prepare the package and timelines vary, so request it early.
What you’ll find inside
Governing documents
You will see the declaration, bylaws, plat, and rules and regulations. These define unit boundaries, common elements, voting, and how expenses are allocated. Review rental and renovation rules, pet policies, floor-covering rules, and any right of first refusal.
Current and recent budgets
Budgets show income and expenses, including utilities, staff, management, insurance, and repairs. Check whether heat, water, gas, or cable are included, since that affects monthly assessments. Look at year-over-year trends and note large line items like elevator maintenance or façade work.
Financial statements and delinquencies
Financials typically include a balance sheet and income and expense statements. Compare cash and reserves to liabilities, and scan for frequent write-offs. A high owner delinquency rate can pressure the board to raise assessments or levy special assessments.
Reserve study and reserve balance
A reserve study estimates the life and replacement costs for major components and recommends annual funding. Look for a recent study and compare reserves on hand to the recommended level. If reserves are far below recommendations, expect higher future assessments or special assessments.
Insurance summary
The certificate of insurance outlines coverage types and limits, deductibles, and whether the policy is all-in or bare walls. Note deductibles tied to common risks and whether there is flood or sewer backup coverage. You will still need an HO6 policy for interior finishes and personal property.
Board and membership minutes
Minutes from the past 12 to 24 months help you spot plans and issues. Look for repeated discussion of capital projects, vendor disputes, or collection challenges. Watch for votes approving special assessments or loans.
Lawsuits and claims
The package should disclose material litigation or regulatory actions. Building-wide defect claims, such as façade or water issues, can be costly and affect insurance or financing. Ask about the potential financial impact if litigation is noted.
Special assessments and projects
You should receive notices of proposed or approved special assessments and timelines. Confirm what is funded, what will be due, and whether projects are already contracted. For newer buildings, check if any developer warranties remain.
Parking, storage, and amenities
Clarify whether parking is deeded, assigned, or leased, and whether it transfers with the unit. Note monthly parking fees, guest parking rules, and storage arrangements. In Streeterville, parking can be a premium, so document exact costs.
FHA/VA financing notes
FHA or VA approval can affect your loan options. If the building is not approved, certain mortgages will not be available. Ask your lender to confirm the current status early.
Estoppel or payoff certificate
An estoppel verifies the seller’s balance, fines, and fees due at closing. Confirm the date of issuance because estoppels have short validity windows. Lenders and closers use this to ensure the account is current.
How to read it like a pro
Follow a consistent review order so you do not miss anything.
- Start with the budget and financials to understand operating costs and cash flow.
- Check reserves and the latest reserve study for big-ticket replacements and timing.
- Review minutes for context on projects, vendor issues, and rule changes.
- Confirm insurance coverage types and deductibles and note any gaps.
- Scan for litigation, special assessments, and project notices and note amounts and due dates.
- Verify parking, storage, and amenity costs and how they transfer.
- Ask your lender to confirm any FHA/VA status needs for your financing.
- Confirm the estoppel is current and the seller’s account is in good standing.
Streeterville factors to weigh
Streeterville has a mix of luxury towers, mid-century conversions, and mixed-use buildings. High-rise systems like cladding, curtain walls, elevators, central HVAC, and parking structures drive capital needs. Lake-effect weather and freeze-thaw cycles add stress to façades and windows, so a recent reserve study and documented façade inspections matter.
High-amenity buildings with doorman, concierge, pools, and gyms tend to have higher staffing and insurance costs. Proximity to the lake and older plumbing systems can influence deductibles and claims history. In a competitive market, multiple offers can still occur, so build time into your contract for document review and financing approval.
Red flags and follow-ups
If you spot any of the items below, ask focused follow-up questions before moving forward.
- Low or zero reserves relative to building age. Ask for the reserve study and the board’s funding plan.
- Large or recent special assessments. Request the vote, project budget, and timeline.
- High owner delinquency rates. Ask for the collection policy and recent enforcement actions.
- Pending or recurring litigation. Request details on potential financial exposure and cost allocation.
- Insurance gaps or very high deductibles. Confirm what your HO6 must cover and whether recent claims affected premiums.
- Restrictive rules that affect use or value. Clarify application, approval timelines, and any waiver process.
- Vendor or management concentration. Ask about contract terms, costs, and renewal dates.
- Developer control or incomplete turnover. Confirm turnover schedule, warranty claims, and commitments.
Quick comparison math
Use simple, apples-to-apples calculations to compare Streeterville buildings.
- Assessments per square foot: Monthly assessment divided by unit square footage. Example: $850 on 1,000 sq ft equals $0.85 per sq ft.
- Reserves per unit: Total reserves divided by number of units. Example: $2,000,000 reserves for 200 units equals $10,000 per unit.
- Assessment trend: Compare the percentage change year over year. Example: $750 to $795 equals a 6 percent increase.
- Delinquency rate: Total past-due assessments divided by total annual assessment income. Higher rates increase risk for future increases or special assessments.
- Special assessment frequency: Count the number and size over 5 to 10 years. Frequent, large assessments can signal underfunding or deferred maintenance.
These are illustrative. When in doubt, ask for the reserve study and have a professional help interpret timing and costs for major components.
Timeline and who reviews what
Order the 22.1 package early because management turnaround times and fees vary. Build a contract contingency period that allows enough time for document review and lender approval.
- Real estate agent: First read for obvious red flags and practical comparison.
- Condominium attorney: Review governing documents, special assessments, rights of first refusal, and estoppel validity.
- Lender: Confirm mortgageability and any FHA/VA or insurance requirements.
- Contractor or engineer: If major façade, elevator, or structural work is planned, get expert input on scope and likely costs.
Common misunderstandings
- “Low fees mean a cheaper building.” Not always. Utilities and amenities may be included, and underfunded reserves can lead to big special assessments.
- “Reserves can cover operating shortfalls.” Reserves are for capital repairs and replacements. Healthy associations maintain operating cash and capital reserves.
- “No disclosed lawsuits means no issues.” Minutes can reveal disputes or claims in discussion stages. Read them closely and ask questions.
- “The estoppel is final.” It shows amounts as of issuance and can expire quickly. Verify balances close to closing.
Buyer checklist
Use this list to keep your review focused and complete.
- Request the 22.1 package and estoppel certificate early.
- Ask for: declaration, bylaws, rules and regulations.
- Get current and prior-year budgets and financials.
- Request the most recent reserve study and current reserve balance.
- Review board minutes from the last 12 to 24 months.
- Obtain a list of pending or recent special assessments.
- Request notices of pending litigation and any settlements.
- Get the certificate of insurance and deductible details.
- Confirm parking and storage deeds or assignments and fees.
- Ask for management and vendor contracts where available.
- Confirm FHA/VA status if your financing requires it.
- If red flags appear, consult a condo attorney and ask management for written clarifications.
Move forward with confidence
A clear, careful read of the 22.1 disclosure can save you money and stress, especially in Streeterville’s high-rise market where building systems and amenities vary widely. When you know how to interpret budgets, reserves, minutes, and assessments, you can compare buildings on real costs and risk, not just list price and photos. If you want a second set of eyes or need to strategize your offer and contingencies, we are here to help. Connect with the Ballis Group to review your 22.1 and move forward with clarity.
FAQs
What is an Illinois 22.1 disclosure for condos
- It is the resale information package required by Section 22.1 of the Illinois Condominium Property Act that outlines finances, rules, projects, and assessments.
How long does a Streeterville association take to deliver 22.1
- Turnaround times and fees vary by association, so request the package as early as possible and confirm timing with management.
What is a healthy reserve level for a high-rise
- Compare reserves on hand to a recent reserve study’s recommendation; a large gap suggests higher future assessments or special assessments.
Do 22.1 documents show parking and storage details
- They should indicate whether parking is deeded, assigned, or leased and outline transfer rules, fees, and storage arrangements.
Can I cancel a purchase after reviewing the 22.1 disclosure
- Many contracts include a document review contingency; discuss your options and timelines with your agent and attorney before deadlines.
How do FHA or VA approvals affect my financing
- If a building is not FHA or VA approved, certain loan types may not be available, so ask your lender to verify status early.
Who pays for the 22.1 resale package and estoppel
- Associations commonly charge a reasonable fee for preparing the package and estoppel, and costs are typically addressed in the contract or by local custom.
