Eyeing a condo in Andersonville or Edgewater and wondering what those monthly fees really cover? You are not alone. Condo assessments can feel confusing, and special assessments can surprise even experienced buyers and sellers. In this guide, you will learn what assessments are, how they are set, the risks to watch for in this neighborhood, and how to protect your budget in a purchase or sale. Let’s dive in.
Condo assessments: what they cover
Condo assessments are the periodic payments you make to your association to run the building. They fund day-to-day operations like utilities for common areas, cleaning, snow removal, landscaping, management fees, elevator service, insurance, and administrative costs. Most budgets also include a contribution to reserves for future major repairs.
Amounts are typically divided among units based on each unit’s percentage interest listed in the declaration. Associations usually adopt an annual budget that sets the total dues, then allocates costs to each unit on that basis.
Special assessments in Chicago condos
A special assessment is a one-time charge when regular dues and reserves are not enough for a particular expense. Triggers often include roof or masonry replacement, exterior façade work, elevator replacement, emergency structural repairs, insurance deductibles after a claim, or costs related to litigation.
In Chicago, city inspection and code enforcement can drive major exterior repairs, especially in older buildings. Orders to correct unsafe masonry, parapets, windows, or roofs can lead to large projects and special assessments if reserves are low. Approval rules depend on your building’s declaration and bylaws, as well as Illinois law.
How dues are calculated
Associations plan costs through an annual budget. Regular assessments fund operations and add to reserves for predictable capital items like roofs, windows, and paving. A solid reserve, often guided by a reserve study, reduces the need for special assessments.
If costs rise or a big project appears, boards can increase regular dues or adopt a special assessment according to the declaration and bylaws. Some actions require only a board vote, while others require owner approval. Always check the governing documents to understand thresholds and timelines.
Assessments vs property taxes
Assessments are not property taxes. Property taxes are levied by the Cook County Assessor and collected by Cook County. Condo assessments are set by your association to operate and maintain the building. You should budget for both.
Buyer due diligence checklist
Before you buy in Andersonville or Edgewater, request and review these documents. They are standard in Chicago-area condo resales and help you judge assessment risk:
- Current estoppel certificate showing assessment status, delinquencies, and any approved or pending special charges.
- Declaration, bylaws, and rules.
- Most recent annual budget and year-to-date financials.
- The most recent reserve study or reserve analysis.
- Board and owner meeting minutes for the last 12 to 24 months, including any special meetings.
- Insurance certificate or summary of the master policy, including deductibles.
- List of pending or recent capital projects, bids, or contractor agreements.
- Any current or threatened litigation involving the association.
- Owner delinquency report.
- Rental and occupancy policy, plus current rental percentage.
- Any notices from the City of Chicago regarding required repairs.
Financial red flags and green lights
Watch for signs of future special assessments. Compare the reserve balance to the reserve study’s recommendations. Frequent dues increases or recent special assessments can indicate ongoing issues. Large insurance deductibles may be assessed to owners after a claim.
City repair notices and exterior orders, which are common with older masonry buildings, are important to uncover. High owner delinquencies can strain the budget and increase the burden on paying owners. On the positive side, a healthy reserve, consistent budget discipline, and clear project planning reduce risk.
Negotiating assessments in a sale
For buyers
- Ask the seller to pay any approved special assessment that is due before or at closing.
- If reserves are low or big repairs are looming, request a price reduction or an escrow holdback to cover risk.
- Include an HOA document review contingency with a clear deadline and the right to cancel or renegotiate if the association’s finances are unsatisfactory.
For sellers
- Disclose any known or pending assessments early to build trust and avoid delays.
- Order the estoppel promptly so buyers can verify dues, delinquencies, and special charges.
- If a special assessment is likely but not yet approved, be ready to negotiate responsibility and provide full documentation.
Closing mechanics for assessments
Regular monthly or quarterly dues are usually prorated between buyer and seller at closing. Special assessments are handled by agreement in the contract. Often, approved amounts due at or before closing are paid by the seller, while future or unknown assessments become the buyer’s responsibility unless negotiated otherwise.
If an assessment is pending, parties may use an escrow or holdback at closing to cover the cost once it is finalized. Buyers should also require an up-to-date estoppel certificate to confirm the latest amounts and any approvals.
Local context: Edgewater and Andersonville
Many buildings in this area are vintage masonry walk-ups or conversions. Common elements like brick façades, roofs, windows, boilers, and elevators may require periodic capital projects. City building inspections and repair orders can also affect budgets. Smaller or self-managed associations may vary in reserve planning, so reviewing the reserve study and financials is essential.
Your action plan
- Define your budget including assessments and property taxes.
- Review the full condo document package listed above.
- Compare the reserve balance to the reserve study and ask questions.
- Scan recent minutes for project discussions, city orders, and votes.
- Clarify master insurance deductibles and coverage.
- Negotiate credits, payoffs, or escrow if needed.
- Use an HOA review contingency and consult professionals for legal details.
Buying or selling a condo in Andersonville or Edgewater is smoother when you know how assessments work. If you want an advocate to help you evaluate documents, spot red flags, and negotiate smartly, connect with the veteran-led team at The Jerry Cox Group. We are here to help you move with confidence.
FAQs
What is an estoppel certificate in Illinois condo sales?
- It is a statement from the association or manager confirming current dues, delinquencies, and often any approved or pending special assessments so buyers and lenders know unit obligations.
How can I tell if a Chicago condo risks a special assessment?
- Review the reserve study and balance, meeting minutes, history of special assessments, pending repair proposals, and any city repair notices or exterior orders.
Who pays a special assessment when selling a condo?
- It depends on the contract, but approved assessments due at or before closing are often paid by the seller, while future or unknown items are negotiable.
Can an Illinois condo association foreclose for unpaid assessments?
- Yes, associations generally have lien and enforcement rights for unpaid assessments, with procedures governed by the declaration, bylaws, and Illinois law.
Should I hire an attorney to review condo documents in Chicago?
- Yes, attorney review is often recommended because association rules, votes, and financials can have important legal and financial consequences for buyers and sellers.
