With interest rates at near historic lows, you might be considering refinancing your home, or maybe you are looking to sell and buy another home. Part of the process will include securing documents for your lender or attorney.
At Advantage Management, we have a dedicated Director of Sales and Refinancing to assist in the process. Andrea Bodenstein has been with Advantage Management for 11+ years and is one of its longest-tenured employees. Andrea is responsible for providing the required sales documents and answering any appraisal-related questions for all of our managed properties.
There are many nuances and legalities involving Sales and Refinancing and a lot of pertinent Association information that needs to be disclosed to the listing agents, underwriters, lenders, or brokers engaged in any unit sale. There are also many documents required to sell or refinance your home and a lot of questions that can go along with them. Some of Andrea’s most commonly asked questions are:
Q: What is a 22.1 Disclosure, and why do I need one?
A: 22.1 Disclosures are a part of the Illinois Condo Property Act and are required in any unit sale. This document is generally requested and reviewed by the buyer’s attorney. This document is so important because it provides detailed information about the individual unit and the Association’s health and financial stability as a whole. Buyers need this information to make an informed decision about the investment they are about to make. Any misrepresentation of knowledge could lead to severe legal repercussions for the people involved in the sale. To comply with the Illinois Condominium Property Act, the 22.1 disclosure must include:
- Association Declarations and By-laws, any Condominium rules and regulations, approved meeting minutes, current annual budget, the Association’s reserve balance, etc.
- Any liens in place against the Association, the Board of Directors, or the individual Homeowner
- The Association’s capital expenditures, as well as their financial status for the current fiscal year
- Any funds in the Reserve Account that are earmarked for specific projects or expenses
- Any lawsuits or pending litigation that the Association is involved in
- Information on the building’s common area insurance or the Master Insurance policy for the Association.
Q: What is a Paid Assessment Letter, and why do I need one?
A: A Paid Assessment Letter (PAL) is a letter that is required by the title company from the Management Company or the Board of Directors that is provided before your closing. The PAL states the seller has paid their monthly Assessments in full and is in good financial standing with the Association. If there are any ongoing special assessments, the PAL will also reflect they were paid in full by the seller; this ensures the new buyer will not be responsible for any unpaid funds associated with the unit once they take possession. Suppose the seller does have a balance due. In that case, that amount can be included on the PAL and paid at closing (depending on how the buyer and seller privately decide to work it out). The title company will reflect those changes on the Final Settlement Statement.
Q: Where can I get a copy of my association’s governing documents or minutes?
A: The place to start is on our Advantage Management website at Advantage-Management.com, and then go to the top menu and click on current homeowners. The box on the right will allow you to log into your account where your association documents are stored. Then you can download the documents needed. If you need your log-in information, please contact your property manager.
Q: How do I start the process and obtain my 22.1 or paid assessment letter?
A: The place to order your documents is on our Advantage Management website at Advantage-Management.com, and then go to the top menu and click on current homeowners, then click on the middlebox to sign up for Homewise to place your order.
Q: Are the fees for obtaining documents?
A: Just like with your lender or attorney, there are fees for documents. Please log on to your Advantage Management account for a complete list of prices, and under forms, you will see the full list. You might ask why there are fees and shouldn’t the fees be covered by the Association. The sale or refinance of your individual unit is specific to your unit and not the entire Association.
Q: How do I get in touch with Andrea for additional questions?
A: Andrea can be reached during business hours at 312-475-9400 X3 or at ABodenstein@Advantage-Management.com