Chicago Condo Associations

The condominium market in Chicago has typically been good to investors in real estate. In 2004, the median sales price of an existing condo surpassed that of a single-family home for the first time ever, according to the National Association of Realtors. This trend has held steady through 2006: The median sale price of a condo was $214,700 in August, compared with a median price of $213,200 for a single-family home.

By definition, when you buy a condominium, you're buying all the space contained within the walls. The condo unit may be in the form of a townhouse, an apartment flat, or even a detached structure. The exterior of the building, the landscaping, driveways, garages, and common areas are all owned by a condo association, a group made up of all unit owners in the building.

A Condo Association in Chicago has a number of duties and responsibilities. It is responsible for not only the day-to-day operation of the complex, but also for long term planning. This association monitors what is happening in the complex, and whether or not all owners play by the rules and regulations of the building. For example, as a unit owner, the condo association will limit what sort of modifications you can make to your condo. Typically new rules are voted upon by all the association members. Existing regulations were also decided upon by past condo unit owners.

A good condo association is vital to maintaining your condo's value. As an owner in a complex, you will belong to its association and pay a homeowner's fee. The condo association is there to cover the expenses to insure and maintain the property; therefore it is of great importance to have an association that is professionally managed and has the funds to make needed repairs. The type of fixes can vary widely, from fresh paint in the common areas to repaving the driveways, so a condo association's reserve funds are important. The condo association, in essence, is responsible for the future of the whole complex. Its members must be aware of everything that is going on there and should never overlook any of the structural problems that may appear. It might be landscaping or a small crack, but if the association overlooks those things, greater problems may occur. Hence, we can safely say that it is somehow responsible for the market value of your unit, as problems that do not get fixed will detract from the look and overall value of your condo. Typically noise complaints and similar problems are reported to the condo association, which can choose to levy fines on it's members.

All the things mentioned should mean a lot to the potential buyer. Before buying a condo in Chicago, you should investigate the building's condo association, check if they have the necessary funds, and get an idea of which expenses will be covered by the association. Generally, the association takes care of all of the exterior upkeep of the buildings and grounds. But this can vary a little from association to association, so it is important for a condominium, townhouse buyer or a luxury condo buyer to have a clear idea of exactly what will be covered, in order to avoid problems in the future.

If you are a prospective buyer of a Chicago condo, do a little research about the association. Talk to the members and ask them if the association is well-managed and if they like living there. But most importantly, check the association's budget, because this will help determine the services you will receive, and the assessments you may be charged with. Associations are required to develop an annual budget for both income (homeowners' fees) and expenses, as well as the current state of its finances. Obviously, the available funds the association has, the safer the owners are. The budget should have a reserve fund for major expenditures. If not, condo owners may be hit with special assessments for major repairs.