What Do I Have to Disclose When Selling a Condo in Illinois?
THE SHORT ANSWER
Illinois condo sellers must provide two disclosures before closing: the Illinois Residential Real Property Disclosure form for the unit itself, and the Section 22.1 condo disclosure covering the HOA, reserves, litigation, and special assessments. Missing either disclosure can give buyers the right to terminate the contract..
This post covers both laws, what they require, what can happen if you miss one, and exactly how to get ahead of both before you list.
Illinois Has Two Separate Disclosure Laws for Condo Sellers
This is the part that surprises sellers almost every time. The general real estate disclosure form applies to any residential sale in Illinois. The condo-specific disclosure is a separate legal requirement that applies only to condominium resales. They overlap in timing but cover completely different things.
Understanding both is not optional. It is the foundation of a clean, protected transaction.
What Is the Illinois Residential Real Property Disclosure Act?
The Illinois Residential Real Property Disclosure Act, commonly called IRELA, requires every residential seller to deliver a written disclosure report to the buyer before the buyer is obligated to close. In practice, this happens during or at the close of attorney review.
The form asks 23 yes-or-no questions about known defects in the property. Categories include:
- Flooding, water intrusion, or drainage problems
- Roof, chimney, and structural issues
- Plumbing, electrical, and HVAC systems
- Presence of radon, asbestos, lead paint, or mold
- Any litigation involving the property
If your answer is yes to any question, you must describe the defect. If you genuinely do not know, you mark "no knowledge." Illinois courts treat that box seriously. If you had reason to know about a problem and marked no knowledge anyway, it can be treated as a false answer.
The consequences of getting IRELA wrong are significant. Deliver it late, and the buyer can terminate. Lie on it, and you face the buyer's actual damages plus their attorney fees. Skip it entirely, and the buyer has an automatic right to cancel the contract.
What Is the Section 22.1 Disclosure, and Why Does It Matter More Than Most Sellers Realize?
Section 22.1 of the Illinois Condominium Property Act is a condo-specific disclosure requirement that applies to every resale, meaning any sale where the seller is not the original developer. This is the one most sellers miss, and missing it can unravel a deal days after you think you have a solid contract.
The 22.1 is not about your unit. It is about the building.
It requires the condominium association to provide a packet of documents that gives the buyer a clear picture of the financial and legal health of the association. Once a written request is made, the association has up to 30 days to respond. As of 2022, Illinois law capped the fee associations can charge at $375.
A compliant 22.1 packet includes:
- The declaration, bylaws, and all rules and regulations
- A statement of any unpaid assessments or charges on the unit
- The association's current budget and projected capital expenditures for the next two fiscal years
- Financial statements from the prior fiscal year, ideally audited
- The status and amount of any reserve fund
- Any pending lawsuits or judgments involving the association
- A statement of any anticipated special assessments
Once the buyer receives the packet, they typically have a few business days to review it and cancel the contract without penalty. No reason required. They just have to act within the window.
What Can Happen to Your Sale If the 22.1 Reveals Problems
The buyer's decision to stay under contract depends in part on information you do not create or control. If your building has low reserves, an upcoming special assessment, or active litigation tied to a construction defect or water issue, the buyer will find all of it in the 22.1 packet.
Buyers who see a depleted reserve fund, or a large capital project with no funding plan, or a lawsuit involving structural damage, have every legal right to terminate. And many do.
This does not mean a building with issues cannot sell. Condos in West Loop, River North, Gold Coast, and South Loop buildings with real HOA challenges sell every day when the situation is priced and disclosed correctly. The sellers who lose deals are the ones who find out about building issues three days into attorney review and have no plan.
The One Step Most Sellers Skip: Request the 22.1 Packet Before You List
This is the single most important thing you can do to protect your sale. Request the 22.1 packet from your association or property management company two to six weeks before you plan to go on the market. Read it with your real estate attorney. Understand what is in it.
If reserves are low, know the number and prepare an explanation buyers will hear from you, not discover on their own. If a special assessment is planned or under discussion, get the details so you can price accordingly and disclose proactively. If there is litigation, know the status and what it involves.
Buyers are far more willing to proceed when a seller has already addressed the difficult information head-on. Surprises in attorney review create anxiety and exit opportunities. Information shared upfront creates trust and keeps the deal together.
According to the Chicago Association of Realtors, sellers who prepare association documents in advance have significantly fewer transaction delays tied to condo document review. The investment in a few weeks of preparation almost always pays off.
What Sellers Often Get Wrong About Both Disclosures
The most common mistake is treating the IRELA form as the only disclosure and the 22.1 as the attorney's problem. Both are your responsibility to initiate and manage.
A few things sellers frequently misunderstand:
The 22.1 takes time. Associations are legally required to respond within 30 days, but some buildings, especially those with older records or complex governance, take longer. If you wait until you are under contract to order the packet, you may spend your entire attorney review window just waiting for documents.
The IRELA form is not optional for FSBO sellers. Illinois law applies to any transfer of residential property with limited exemptions. Selling without an agent does not exempt you from disclosure requirements.
"As-is" does not eliminate your disclosure obligation. You can sell a condo as-is in Illinois, but you must still complete both disclosures. As-is language limits your obligation to make repairs, not your obligation to disclose.
Delivering the IRELA form at closing is too late. The form must be delivered before the buyer is obligated to perform, which means at or before attorney review. Bringing it to the closing table gives the buyer the right to terminate.
For a full walkthrough of the Chicago condo selling process from start to finish, including association document timelines, see The Ultimate Guide to Selling a Condo in Chicago.
How the 22.1 Disclosure Connects to Special Assessments and HOA Health
One of the most financially impactful items in the 22.1 packet is the reserve fund balance and any mention of anticipated special assessments. In Downtown Chicago high-rise buildings, those numbers can be significant.
Special assessments are one-time or limited-term charges levied by the association when the reserve fund does not have enough money to cover a major project or emergency repair. Common triggers in downtown buildings include facade work, elevator modernization, rooftop replacement, and mechanical system upgrades. A West Loop or Streeterville high-rise with aging infrastructure and a thin reserve fund is a building where special assessments are a real risk.
Buyers know this. Their lenders know this. And it all shows up in the 22.1.
For a detailed breakdown of how HOA fees and reserve funds work in Chicago condo buildings, see Chicago Condo HOA Fees Explained.
According to the National Association of Realtors, buildings with strong reserve funding consistently show better buyer confidence and faster transaction timelines compared to underfunded buildings where special assessments are expected.
A Practical Pre-Listing Disclosure Checklist for Chicago Condo Sellers
Before you go on the market, work through this list:
- Request the full 22.1 packet from your association or property management company
- Review the reserve fund balance and ask your property manager about any projects under discussion
- Pull the last 12 to 24 months of board meeting minutes and read them for any pending litigation, deferred maintenance discussions, or assessment votes
- Complete the IRELA form with your real estate attorney before listing
- Confirm whether any special assessments are approved, pending, or anticipated, and decide how you will address that in pricing and negotiation
- Ask your attorney about the buyer's rescission window after receiving the 22.1 packet and build that into your timeline expectations
Sellers in the West Loop, Gold Coast, and River North who bring organized association documents to the table move through attorney review faster and with fewer surprises.
Key Takeaways
- Illinois condo sellers must complete two separate disclosures: the IRELA form and the Section 22.1 condo association disclosure.
- The IRELA form covers your individual unit and must be delivered before attorney review closes.
- The Section 22.1 covers the building and association, including finances, reserves, litigation, and special assessments.
- The association has up to 30 days to prepare the 22.1 packet. Order it early, ideally before you list.
- Buyers have a rescission window after receiving the 22.1 and can terminate without penalty if the building's financial picture concerns them.
- Preparing both disclosures in advance, with your attorney, is the single most effective way to protect your transaction.
The Bottom Line
Disclosure is not a formality. In Illinois condo sales, it is a legal structure that gives buyers rights, and gives sellers liability exposure when it is handled carelessly. The sellers who navigate this cleanly are the ones who prepare early, understand what both laws require, and do not leave the 22.1 process to the last possible moment.
If your building has a complicated financial picture, that does not have to end your sale. It just has to be addressed strategically. Pricing, positioning, and honest communication with buyers can move properties in buildings where things are not perfect. But you have to know what you are working with before you list.
I have helped sellers in Downtown Chicago condos handle disclosures across dozens of buildings, from newer West Loop towers to vintage Gold Coast high-rises with more complex association histories. The process is manageable when you start early and work with the right people.
Call or text Christine Hancock at 312-296-9300 to talk through your unit's specific situation, including what your 22.1 packet is likely to show and how to position your sale around it.
Frequently Asked Questions
What happens if I skip the Section 22.1 disclosure when selling my condo in Illinois? Missing the 22.1 is a serious problem. Buyers who do not receive the required condo association documents have the right to terminate the contract during attorney review. It can also expose you to legal liability after closing if building issues were not properly disclosed.
How long does it take to get the 22.1 packet from my condo association? Illinois law gives associations up to 30 days to respond after a written request. In practice, many building management companies in Downtown Chicago aim for 7 to 21 days, but complex buildings or those requiring board sign-off can take the full 30 days. Order early.
Does selling my condo as-is mean I don't have to complete the Illinois disclosure form? No. Selling as-is limits your obligation to make repairs, but it does not eliminate your obligation to complete the IRELA disclosure form or the Section 22.1. Both are required by law regardless of as-is language in the contract.
What if my building has a pending special assessment? Do I have to disclose that? Yes. Any approved or anticipated special assessments must be included in the 22.1 packet the association prepares. Work with your real estate attorney to decide how to address it in your pricing strategy and negotiations before you receive an offer.
Who pays for the Section 22.1 packet? Illinois law caps the fee associations can charge at $375, subject to annual adjustment based on the consumer price index. In standard Chicago practice, the seller typically pays for the packet as part of their closing costs, though contracts can allocate this cost differently.
ABOUT THE AUTHOR
Christine Hancock is a Chicago Realtor with @properties Christie's International Real Estate, bringing more than 25 years of experience and over $200 million in closed sales in the downtown condo market. With 96 five-star Zillow reviews, Christine is recognized for her commitment to client satisfaction and market expertise.
She specializes in high-rise and luxury condominium sales in West Loop, South Loop, River North, and Streeterville, helping buyers and sellers navigate complex transactions with data-driven pricing strategies and deep neighborhood insight.
Christine partners with clients to evaluate market trends, position properties competitively, and make confident, informed decisions in Chicago's vibrant downtown housing market.
Call or text 312-296-9300 to discuss current market conditions or your real estate goals.
