Asking for written confirmation of amounts owed by a unit
Understand how to formally verify outstanding condominium common expenses and identify financial obligations before finalizing a property transaction.
The short answer
In Illinois, condominiums must maintain financial records, and unpaid common expenses or fines create a legal lien on a unit. When purchasing or selling, you must secure written verification of these amounts to ensure no hidden debts transfer at closing. Relying on verbal assurances is insufficient; obtain a formal statement of account directly from the association board.
The Legal Status of Unpaid Expenses
Under the Illinois Condominium Property Act, unpaid common expenses or fines create a lien in favor of the board of managers. This lien is generally superior to other debts, excluding specific tax liens. Buyers must be aware that purchasing a unit includes assuming responsibility for the financial status of the unit as it relates to the association.
Verifying the Statement of Account
Before closing, request a written statement detailing any outstanding common expenses or fines. If you are the seller, this document provides the buyer with necessary assurance. If you are the buyer, this document protects you from inheriting delinquency. If a board is unresponsive, consult a legal professional regarding your rights to inspect records.
The Role of Closing Disclosure
While the Closing Disclosure provides a summary of loan terms and costs like origination charges or taxes, it may not capture specific unit-level arrears. Use the Closing Disclosure to verify your expected cash to close, but cross-reference it with the association's written confirmation of unit-specific debts to ensure a complete financial picture.
Hypothetical Planning: The Buyer's Worksheet
Create a worksheet listing: 1) Monthly common expense amount, 2) Total current arrears (if any), 3) Outstanding special assessments, 4) Date of the latest board statement, and 5) Name of the board contact who issued the document. Use this to ensure your closing settlement agent has accurate payoff figures before funds are transferred.
Checklist
- Obtain a written statement of account from the condo board.
- Confirm if any special assessments are currently active.
- Check the association’s most recent annual budget provided to owners.
- Verify that the statement reflects current fines or late fees.
- Share the final statement with your closing attorney for review.
Common questions
Does a closing disclosure show all condo debts?
No. A Closing Disclosure primarily tracks mortgage-related costs and escrow items, not individual unit debts owed to a condominium association.
What if the seller claims there are no debts?
You should not rely on verbal claims. Insist on receiving a formal written confirmation from the association board of managers.
Sources
- CFPB — Closing Disclosure explainerChecked October 12, 2026
- Illinois Residential Real Property Disclosure ActChecked October 12, 2026
- Illinois Condominium Property Act — 2025 editionChecked October 12, 2026
- SQFT IO — Listing plans and termsChecked October 12, 2026
This guide is general educational content from SQFT IO, prepared with AI assistance. It is not legal, tax or loan advice. Talk with a licensed attorney, tax professional or lender about your situation. SQFT IO Illinois license 478.027617.