Thinking about a condo in the Chicago Loop and wondering what the 22.1 disclosure actually tells you? You are not alone. This document is one of the most powerful tools you have to judge a building’s financial health, rules, and upcoming projects before you commit. In this guide, you will learn what is in a 22.1 package, how to read it like a pro, and what to verify for downtown high-rises. Let’s dive in.
What the 22.1 disclosure is
A 22.1 is the condominium association’s official snapshot of the building’s finances, governance, rules, and any known obligations that could affect you as a buyer. It exists under Illinois law so you can make an informed decision before closing. For the statutory basis, review the Illinois Condominium Property Act on the Illinois General Assembly website.
In practice, you, your attorney, and your broker use the 22.1 to evaluate risk at the building level. Lenders and title companies may also consider parts of it when they underwrite or prepare closing documents.
Who requests it and when
Most buyers have their attorney request the 22.1 from the association or management company soon after the contract is signed. Some sellers or their attorneys will obtain it during negotiations. Either way, order it early in your contingency window so there is time to read and respond.
- Typical delivery: within 7 to 21 days after a proper request and fee payment
- Typical fee: about 50 to 400 dollars in the Loop, depending on building size and management
- Delivery format: often a PDF package, sometimes paper
If the association withholds attorney-client communications or executive session minutes, that is common. Ask for summaries if needed.
What the 22.1 package includes
The exact contents vary by building, but you can expect these core sections.
Financials to review
- Current annual operating budget with income and expense lines
- Your unit’s current common assessment amount
- Reserve account balances and any category breakdowns
- Reserve study or engineering report if one exists
- History of special assessments and reasons for them
- Accounts receivable or delinquency information
What it means for you: These items reveal whether the association funds day-to-day operations, whether reserves are adequate for big-ticket items, and how often owners have been asked to pay extra.
Assessments, fees, and obligations
- Special assessments that are pending or recently approved
- Payment schedules and whether the seller has unpaid balances
- Move-in and move-out fees, parking and storage fees, amenity fees
What it means for you: You need to know your likely total monthly and one-time costs, plus any near-term assessments that could hit after you close.
Legal and insurance
- Current or pending litigation and the nature of the claims
- Insurance summary or certificate showing coverage types and limits
- Any notices of default or foreclosure actions involving the association
What it means for you: Lawsuits tied to construction defects, water intrusion, or structural concerns can carry risk. Insurance limits and deductibles should match the building’s size and exposure.
Governing documents and rules
- Declaration and plats, bylaws, and rules and regulations
- Recent board meeting minutes, often from the past 12 months
- Management contract details
What it means for you: These documents set the community’s rules, voting processes, and board decisions. Minutes can surface upcoming projects, service issues, or policy changes.
Occupancy and unit-level details
- Owner-occupancy and rental percentages
- Rental rules or caps
- Unit ledger for the selling unit that shows any outstanding fees
- Parking and storage assignments with any transfer fees or waitlists
What it means for you: Owner-occupancy levels and rental policies can affect financing, building stability, and future resale. A clean unit ledger helps you avoid surprises at closing.
Capital projects and maintenance
- Plans for major projects, contracts, or active construction
- Engineering or inspection reports
What it means for you: Elevators, facade work, roofs, windows, and mechanicals can involve six- or seven-figure budgets in high-rises. Understand scope, timing, and funding sources.
How to read the numbers
Focus on a few key metrics first. If these check out, dig deeper into the details.
- Reserve adequacy: Compare reserve balances to the building’s major components and any reserve study recommendations. Very low reserves relative to known needs are a warning sign.
- Assessment trends: Healthy associations plan modest annual increases. Big spikes or frequent special assessments can signal deferred maintenance or budgeting gaps.
- Delinquencies: A delinquency rate above roughly 5 to 10 percent can stress cash flow and increase risk of special assessments.
- Special assessment history: Repeated or large assessments deserve careful review of cause and outcome.
Loop-specific risks worth a closer look
Downtown high-rises face unique conditions and costs. In the Loop, pay close attention to the following.
- Facade and window systems: Freeze-thaw cycles and lake exposure can drive masonry repair, tuckpointing, and window replacement programs.
- Elevators and mechanical plants: Modernization and boiler or chiller replacements are expensive, with long lead times.
- Parking structures: Garage repairs and waterproofing can lead to multi-year plans and staged assessments.
- Staffing and amenities: Doormen, concierges, pools, and fitness centers are great, but they raise payroll and operating costs.
- Rental mix: High investor concentration can affect financing options and building dynamics.
- Conversion history: Older conversions may carry legacy punch lists or capital needs that surface years later.
Costs, timing, and delivery tips
- Budget time: Plan for a 7 to 21 day delivery window, and build this into your contract contingencies.
- Expect a fee: In many Loop buildings, the package costs 50 to 400 dollars.
- Ask for digital: Request a searchable PDF for easier review.
- Redactions happen: If executive session items are withheld, ask for a board or attorney summary of the topic and status.
Smart follow-up questions
When you see potential issues, request context and proof.
- For major projects: Ask for engineering reports, contractor bids, and funding plans.
- For litigation: Request claim summaries and any insurance responses.
- For insurance: Confirm policy limits, named insureds, and deductibles.
- For reserves: If no reserve study exists, ask when one will be commissioned.
- For rental caps: Confirm the current percentage, any waitlists, and how compliance is tracked.
Fit the 22.1 into your contingencies
Order the 22.1 early, and set clear review rights in your attorney-modified contract. If the package reveals unacceptable risks or the association fails to provide required items in time, your contract language and contingencies will guide your options. Your attorney will help protect your ability to cancel or renegotiate if needed.
If you want broader practice context for timing and standard clauses, see resources from Illinois REALTORS and the Chicago Association of REALTORS.
Where to verify and cross-check in Chicago
Use public records to validate what you see in the 22.1, especially for high-cost capital work.
- Statute and requirements: Review the Illinois Condominium Property Act on the Illinois General Assembly website.
- Litigation search: Look up cases by association or developer through the Cook County Circuit Court Clerk.
- Liens and recorded documents: Check the Cook County Clerk Recording Division for liens, amendments, and declarations.
- Permits and violations: Confirm recent or pending work through the City of Chicago Department of Buildings permit and inspection records search.
These sources help you confirm project scope, track timelines, and spot issues that may not be fully captured in meeting minutes.
Quick checklist for Loop condo buyers
Use this short list to compare buildings side by side.
- Financial strength
- Reserve balance relative to big components
- Presence and date of a reserve study
- Delinquency rate and trend in assessments
- Projects and risk
- Any large special assessments or looming capital projects
- Active or recent litigation and insurance details
- City permits and violation history match the 22.1 and minutes
- Rules and use
- Rental caps or restrictions that affect financing or your plans
- Fees for moving, parking, storage, and amenities
- Governance and management
- Board minutes show clear planning and consistent decisions
- Stable management contract with defined services
- Unit specifics
- Seller is current on assessments
- Parking and storage terms are clear
Why this matters before you commit
Your home is inside a community that you share with dozens or hundreds of neighbors. The 22.1 helps you judge the association’s ability to care for the building, plan responsibly, and protect owners from surprise costs. A careful read can save you from unplanned assessments, financing hiccups, or rule conflicts that do not fit your lifestyle or investment goals.
Ready for a second set of eyes on your short list of buildings in the Loop? Our team guides you through the documents and the practical, on-the-ground context that numbers alone may not show. If you are weighing two or three high-rises with different fee structures and amenity levels, we help you compare total cost of ownership and long-term building health.
Spacematch Inc. is built for Chicago buyers who want clarity and execution. When you are ready to move, we coordinate with your attorney and lender, align contingency timelines, and keep the process on track. Let’s find the building that fits your plan and your budget. We Spacematch you to the right home.
FAQs
What is a 22.1 condo disclosure in Illinois?
- It is the association’s official package of financials, rules, and known obligations that buyers can review before closing under the Illinois Condominium Property Act.
Who orders the 22.1 in a Chicago Loop purchase?
- Typically your attorney requests it from the association or manager soon after contract acceptance, although a seller’s attorney may provide it during negotiations.
How long does a 22.1 package take and what does it cost?
- Many associations deliver within 7 to 21 days after payment, and fees often range from about 50 to 400 dollars depending on the building and management.
What red flags should Loop condo buyers look for in a 22.1?
- Low reserves, repeated special assessments, structural or water intrusion litigation, high delinquencies, large unfunded projects, and insurance limits that seem low for the building.
Does a 22.1 always include a reserve study?
- Not always. If a reserve study exists it is often included or referenced. If it is missing, request it, or ask when the association plans to commission one.
Where can I verify permits or litigation mentioned in the 22.1?
- Use the City of Chicago Department of Buildings permit search, the Cook County Circuit Court Clerk for case lookups, and the Cook County Clerk Recording Division for liens and recorded documents.
