Free Act 221 Disclosure PDF Form

How to Fill Out Act 221 Disclosure

Filling out the Act 221 Disclosure form is a critical step in the process for those involved in the resale of a condominium or townhome. This document ensures compliance with Illinois law by providing a statement of condition for the property in question. The form requires precise and factual information about the condominium association’s financial and structural status. By following the guidelines for completing this form accurately, officers or managing agents of the association can facilitate a transparent and efficient transaction for all parties involved.

Steps for Filling Out the Act 221 Disclosure Form:

1. Identify who is completing the form: Strike out the incorrect option to indicate whether the Board of Managers of the condominium association or the designated managing agent is providing the information.
2. For section 1(a), fill in the relevant information pertaining to the monthly assessment for the specific Unit Number, ensuring to include the status of payment, any past due sums, and the periods those dues cover.
3. In section 1(b) and 1(c), circle the appropriate choice to indicate whether there are any other assessments or charges due, and if there are any special assessments under consideration. Provide explanations if the answer is yes.
4. In section 2, indicate whether capital expenditures are anticipated within the current or succeeding two fiscal years. If yes, provide a brief explanation.
5. Enter the amount of the reserve or replacement fund in section 3, clarifying whether any part of it is earmarked for specified projects, and explain if applicable.
6. Attach the association’s most recent approved budget or statement of financial condition as required in section 4.
7. Section 5 asks about pending lawsuits or judgments involving the unit owner’s association. Circle the appropriate answer and explain if there are any.
8. Provide the insurance carrier information requested in section 6, including the name of the company, address, contact name, and their contact details.
9. In section 7, certify the knowledge regarding any improvements or alterations made to the unit or its assigned limited common elements that may violate the condominium’s declarations, bylaws, rules, or regulations.
10. Finally, ensure the form is signed by the agent of the association, and include the association and managing agent's name where applicable.

Once the form is thoroughly reviewed and all sections are accurately completed, it should be submitted in accordance with the resale process's requirements. This might involve providing a copy to prospective buyers or ensuring it is included in the resale package. Proper completion and submission of the Act 221 Disclosure Form are essential steps in promoting transparency and compliance during the condominium or townhome resale process.

What is the Act 221 Disclosure Form?

The Act 221 Disclosure Form is a document required by Illinois Law, specifically mentioned in Chapter 765, Section 605/22.1 of the Illinois Compiled Statutes. It is filled out by either the Board of Managers of the condominium association or the designated managing agent. This form details the current financial and operational status of a condominium unit, including monthly assessments, reserved funds, pending lawsuits, and any violations of the condominium’s declarations, bylaws, rules, or regulations.

Who is responsible for completing the Act 221 Disclosure Form?

Either the Board of Managers of the condominium association or the designated managing agent is responsible for filling out the Act 221 Disclosure Form. The form is to be completed with accurate and up-to-date information regarding the condominium's financial status, special assessments, reserve funds, insurance details, and compliance with condominium regulations.

What information is included regarding monthly assessments?

The form provides detailed information about the monthly assessment related to a specific unit, including the status of payments made through a particular date and any past due sums. It also mentions whether there are other monthly, special, or additional assessments charged to the unit owner by the association.

Are there details about special assessments and capital expenditures?

Yes, the form specifies if there are any special assessments currently under consideration or if capital expenditures are anticipated within the current or succeeding two fiscal years by the unit owner's association. If affirmative, further explanations are required on the form to describe these assessments or expenditures.

How does the form address reserve or replacement funds?

It discloses the amount in the reserve or replacement fund allocated for future capital expenditures, indicating whether parts of these reserves are earmarked for any specific projects by the Board of Managers, along with necessary explanations.

What does the form reveal about pending lawsuits or judgments?

Any pending lawsuits or judgments in which the unit owner's association is a party are disclosed in this section of the form. If there are any such legal matters, detailed explanations are provided to outline the nature and implications of these proceedings.

Is insurance information included in the Act 221 Disclosure Form?

Yes, the form includes comprehensive details about the insurance carrier for the unit owner’s association, including the name of the company, address, contact name, telephone number, and facsimile number.

What information is provided about improvements or alterations to the unit?

The association or managing agent confirms whether they are aware of any improvements or alterations made to the unit or the limited common elements assigned to it that violate the condominium declarations, bylaws, rules, or regulations. This ensures that any potential buyer is fully informed of the unit's compliance status with the association's standards.

Filling out the Act 221 Disclosure Form, an essential document for those involved in condominium or townhome resale in Illinois, requires careful attention to detail. Below are nine common mistakes that people often make while completing this form:

1. Not striking out the non-applicable term between "Board of Managers of the condominium association" and "the designated managing agent," which leads to confusion about who is providing the information.
2. Omitting the unit number, making it unclear which unit the information pertains to.
3. Failing to specify the date through which monthly assessments have been paid. This detail is crucial for the buyer to understand any unpaid dues.
4. Leaving blank the section on past due sums, which can mislead the buyer about the financial obligations remaining with the unit.
5. Not being clear on whether there are any other monthly, special, or other assessments or charges due the association by the unit owner, which can lead to unexpected expenses for the buyer.
6. Ignoring to disclose if special assessments are currently under consideration by the Board of Managers. This information is vital for potential buyers to assess future costs.
7. Omitting details about anticipated capital expenditures or not attaching the most recent approved budget (statement of financial condition) can leave the buyer unaware of the association's financial health and upcoming expenses.
8. Forgetting to specify the amount of the reserve or replacement fund and whether it is earmarked for a specified project. This information helps buyers understand how well prepared the association is for future capital expenditures.
9. Neglecting to disclose pending lawsuits or judgments against the unit owner's association might lead to legal and financial surprises for the buyer down the road.

Making mistakes on the Act 221 Disclosure Form not only complicates the sales process but can also lead to legal issues if the buyer is not fully informed about the condition and financial obligations of the condominium or townhome. Careful review and accurate completion of this document are pivotal in ensuring a transparent and smooth transaction.

When navigating the transaction of a condominium or townhome, the Act 221 Disclosure Form plays a crucial role in the process, ensuring that all parties are well-informed about the financial health and regulations of the condominium association. However, to fully understand the implications of the sale and to comply with legal requirements, several other documents and forms are often used alongside the Act 221 Disclosure Form. These complementing documents provide a more comprehensive view of the property's status, mandate compliance, and protect the interests of both buyers and sellers.

• Budget and Financial Statements: These documents offer a detailed view of the association's financial health, including income, expenses, reserves, and any planned projects. A well-maintained reserve fund and balanced budget can indicate a financially stable association, which is vital for potential buyers to know.
• Condominium Association Rules and Regulations: This document outlines the governance of the condominium, including any restrictions, obligations, and privileges that a unit owner might have. It is essential for buyers to understand these provisions as they directly impact how they can use their property.
• Board Meeting Minutes: Reviewing the minutes from recent condominium board meetings can provide insights into any ongoing issues, disputes, or upcoming projects within the community. This firsthand look into the association's dynamics and plans can influence a buyer's decision.
• Inspection Reports: While not always specific to the condominium association, obtaining recent inspection reports of the property can reveal potential structural, electrical, or plumbing issues. These reports inform the buyer about the unit's condition, helping to avoid unforeseen expenses.

Together, these documents work in concert with the Act 221 Disclosure Form to offer a transparent, detailed, and comprehensive understanding of a condominium or townhome's operational, financial, and physical health. This information is invaluable and ensures that buyers can make informed decisions while also providing sellers the documentation needed to facilitate a smooth transaction. Ensuring that these documents are current, accurate, and thoroughly reviewed is paramount for a successful real estate deal within the condominium and townhome context.

• The Real Estate Disclosure Statement is similar to the Act 221 Disclosure Form because both require the disclosure of material facts that might affect the property's value. They provide essential information to potential buyers, including the condition of the property, known defects, and past repairs.

• Homeowners' Association (HOA) Resale Certificate closely matches the Act 221 form as it includes details about the association's financial health, any pending litigation, and assessments that could impact the buyer financially.

• Lead-Based Paint Disclosure Form is similar in its purpose to protect and inform buyers. While focusing specifically on the risks of lead-based paint, it's akin to Act 221 in that it requires disclosure of known information that could affect the buyer's health or decision to purchase.

• A Residential Lease Application is comparable to the extent that it gathers key background information. Though for renters, it similarly discloses terms and conditions directly affecting the party's use and enjoyment of a property.

• Mortgage Disclosure Statements, required by lenders, provide buyers detailed information on loan terms, fees, and other charges. This clarity and disclosure of financial obligations reflect the intent behind the Act 221 Disclosure to inform parties of fiscal aspects of a deal.

• The Property Insurance Declaration shares the purpose of detailing specific coverages, exclusions, and the financial health of a property, drawing parallels to the Act 221's disclosure of the condominium association's insurance details.

• Environmental Hazard Disclosure aligns with Act 221 by requiring the seller or agent to inform the buyer of environmental risks associated with the property, ensuring the buyer is aware of potential health or financial impacts.

• Termite Inspection Reports are similar in spirit to Act 221's disclosures, especially around the physical condition of a property. These reports inform the buyer about the presence or absence of termite damage, which could influence their decision.

• A Condominium Budget Report has a direct correlation with the Act 221 form, where financial statements and budgets must be disclosed to inform potential buyers of the association’s financial standings and future plans.

Filling out the Act 221 Disclosure Form is a critical step in the process of buying or selling a condominium or townhome. It's not just about filling out the form but ensuring accurate and complete disclosure as required by Illinois Law. Here is a guide to what you should and shouldn't do when completing this important document.

Do:

1. Read carefully: Before starting, read through the entire form to understand what is required.
2. Check accurate figures: Ensure all financial figures, such as assessments and reserve fund amounts, are accurate and up-to-date.
3. Attach necessary documents: Make sure to attach the most recent approved budget statement as indicated in the form.
4. Clarify special assessments: If there are any special assessments under consideration or anticipated capital expenditures, provide clear explanations.
5. Disclose pending litigation: Be honest about any pending lawsuits or judgments involving the unit owner’s association.
6. Confirm property compliance: Verify that any improvements or alterations to the unit comply with the condominium declarations, bylaws, rules, or regulations.
7. Use clear language: Avoid using jargon or overly technical terms that could confuse the reader.
8. Sign and date: Ensure the designated officer or managing agent signs and dates the form, attesting to its accuracy.
9. Review for completeness: Go over the form again to ensure no section has been overlooked or left blank.
10. Retain a copy: Keep a copy of the completed form for your records and future reference.

Don't:

• Leave fields blank: Instead of leaving a field blank, indicate "N/A" or "None" if a question does not apply to your situation.
• Guess or estimate figures: All financial figures should be exact and obtained from the latest financial statements.
• Ignore the deadlines: Be mindful of any deadlines for submitting this form to avoid delaying the transaction process.
• Omit attachments: Failing to attach required documents like the association's budget statement could render the disclosure incomplete.
• Overlook pending lawsuits: Disclosure of any lawsuits is essential; overlooking this can have legal consequences.
• Hide information: Withholding information about special assessments or rule violations can lead to disputes and legal issues.
• Rush through the process: Taking the time to carefully complete the form ensures accuracy and compliance with legal requirements.
• Use pencil: Fill out the form in ink or electronically to ensure that the information cannot be easily altered after submission.
• Forget to communicate with the buyer: Keeping open communication with the buyer regarding any updates or changes is crucial.
• Assume knowledge: Never assume that the other party knows specific details about the association’s financial situation or regulations.

By following these dos and don'ts, individuals involved in selling or buying a condominium or townhome can ensure a smoother, more transparent transaction process, aligning with legal requirements and fostering trust between parties.

When navigating the complexities of condominium or townhome resale, the Act 221 Disclosure Form is a critical document required by Illinois law. However, there are common misconceptions about this form:

• Misconception 1: The form is only necessary for the seller to complete.

  This is not accurate. Although it is the seller's responsibility to provide this form, it must be completed by an officer or the managing agent of the condominium association. It's designed to ensure potential buyers have a clear understanding of the financial and operational state of the association.

• Misconception 2: The form only covers current financial assessments.

  Another common error is the belief that the Act 221 Disclosure Form only details current monthly assessments. In reality, the form provides a broader overview, including past due sums, any other assessments or charges due by the unit owner, and even anticipated capital expenditures for the coming years.

• Misconception 3: All sections of the form apply to every sale.

  Not every section of the Act 221 Disclosure Form will apply to every transaction. For example, there may not always be special assessments under consideration, pending lawsuits, or known violations of condominium declarations. The form is designed to address a range of possibilities, giving a comprehensive snapshot but not every section will be relevant to every sale.

• Misconception 4: The form is optional based on association rules.

  It's a common misunderstanding that whether to provide this disclosure form is at the discretion of the condominium association. However, Illinois law mandates this disclosure for the protection of all parties involved in the sale. Compliance is not optional, underscoring the importance of transparency and accountability in these transactions.

Understanding the purpose and requirements of the Act 221 Disclosure Form can significantly smooth the process of a condominium or townhome resale, ensuring that all parties have the necessary information to make informed decisions.

The Act 221 Disclosure form is a critical document for anyone involved in the resale of a condominium or townhome. Here are ten key takeaways to ensure its proper use and understanding:

• It is designed to comply with Illinois law, specifically Chapter 765, Section 605/22.1 of the Illinois Compiled Statutes, making it important for transactions within Illinois.
• The form can be completed by either the Board of Managers of the condominium association or the designated managing agent, providing flexibility in who can fill it out.
• One of the main purposes of this form is to disclose the financial condition of the unit being sold, including details about monthly assessments, past due sums, and any other charges.
• Special assessments are also covered, indicating whether any are currently considered by the Board of Managers and providing room for explanation if there are any.
• It requires disclosure concerning anticipated capital expenditures for the current and succeeding two fiscal years, helping buyers understand potential future costs.
• Details about the reserve or replacement fund are necessary, including the total amount and whether any of it is earmarked for specific projects.
• A complete copy of the association's most recent approved budget or financial statement must be attached, offering transparency about the financial health of the association.
• The form addresses litigation and judgments, asking whether there are any pending lawsuits or judgments involving the unit owner's association, which could impact a buyer’s decision.
• Insurance information for the association must be disclosed, including the carrier's name, contact information, and any relevant details, which is crucial for understanding the protections in place.
• Lastly, it includes a section on improvements or alterations made to the unit or its limited common elements, indicating whether there are any known violations of the condominium's declarations, bylaws, rules, or regulations.

Preparing and reviewing the Act 221 Disclosure form carefully is essential for both sellers and buyers in a condominium or townhome transaction in Illinois. It ensures that buyers are well-informed about the financial and legal condition of the property they are considering, and helps sellers comply with state law requirements.