More News on Past Due Condominium Assessments
A case decided just this month, Wing Street of Arlington Heights Condominium Association v. Kiss the Chef Holdings, LLC, 2016 IL App (1st) 142563, raises the issue of the condominium association’s right to demand six-months’ past due assessments from the buyer of a foreclosed condominium, but with a twist.
In Wing Street, the bank that foreclosed the condominium transferred title to a wholly-owned subsidiary after the subsidiary purchased the condominium at the foreclosure sale. The defendant later purchased the condominium from the subsidiary. The transaction was not “closed” in the typical manner. Rather, the subsidiary issued a quit-claim deed to the defendant. Neither party requested nor obtained a paid assessment letter from the condominium association. Thereafter, the condominium association filed suit, claiming that the defendant owed six months’ past due assessments.
The case was tried, and subsequently ended up in appeals. The appeals court determined that a wholly-owned subsidiary of a bank is, in fact, a mortgagee-in-possession under the Illinois Condominium Property Act. Anyone that then purchases the condominium from that mortgagee, as the defendant did here, is still liable for six-months’ past due assessments under Section 9(g)(4) of the Illinois Condominium Property Act.
For more information about Illinois rules regarding six-months’ past due assessment for buyers of foreclosed condominiums, click here.