Buying a Condo in Chicago: What First-Time Buyers Should Check (2026)

Published by Joe Bjorklund, Broker, Baird & Warner

Before buying a condo in Chicago, ask the seller for the association’s resale disclosures under Illinois law, which the association must produce within 10 business days for a fee capped at $375, and use them to check the budget, reserves, planned repairs, lawsuits and insurance that will shape your monthly assessment and your ability to get a loan.

Last reviewed October 18, 2026 · Chicago First Time Home Buyer editorial team

Buying a Chicago condo at a glance

Key documents	The association’s resale disclosures (765 ILCS 605/22.1), which the seller obtains from the association and must make available to you on request
Deadline and fee	Within 10 business days; fee up to $375 (adjusted yearly for inflation), plus $100 for 72-hour rush, charged to the seller
Budget notice	Owners get the proposed budget at least 25 days before the board adopts it
Big increases	If assessments rise more than 15%, owners with 20% of the votes can petition for a vote
Forced sale (deconversion)	Chicago requires 85% of owners to approve a sale of the building; 75% elsewhere in Illinois for 4+ units
Property taxes	Each unit is taxed on its percentage of the building’s value; the homeowner exemption applies
Conventional loans	Fannie Mae ended its streamlined Limited Review for loans applied for from August 3, 2026
FHA loans	The building must be FHA-approved, or the lender must get approval for your unit

The documents to ask for before you commit

When an owner sells a unit, Illinois’s Condominium Property Act requires the seller to make these available to a buyer on request, from the association:

The declaration, bylaws, other condo instruments, and rules and regulations
A statement of liens, including any unpaid amounts owed to the association on the unit
Capital expenditures the association expects this fiscal year and the next two
The reserve fund’s status and balance, and any part set aside for a specific project
The association’s financial statement for the last fiscal year available
Any pending lawsuits or judgments involving the association
The insurance the association carries for all owners
A statement that the seller’s alterations to the unit are believed to comply with the condo instruments
The name and address of the officer or agent who receives notices

The association must provide them within 10 business days of a written request. Starting January 1, 2027, the list also includes the association’s written collection policy for unpaid assessments. In practice, your attorney requests these during attorney review, and your lender sends its own condo questionnaire.

How condo assessments, special assessments and reserves work

The board must send every owner a detailed proposed budget, showing each owner’s assessment and the reserves, at least 25 days before adopting it. If the budget or a separate assessment would raise total assessments above 115% of last year’s, owners holding 20% of the votes can petition within 21 days; the board must then hold a meeting within 30 days, and the increase stands unless a majority of all votes rejects it. Spending for an emergency or a legal requirement is not subject to that petition.

Budgets must include reasonable reserves for capital expenditures and deferred maintenance. Owners can waive reserves only by a two-thirds vote, and the resale disclosures must say so in bold. Low reserves are the main sign that a special assessment may be coming.

Chicago’s 85% rule for selling the whole building

A developer can buy out a condo building only if owners approve. Under Chicago’s condo ordinance, a sale of the property requires at least 85% of unit owners; elsewhere in Illinois the state Act requires 75% for buildings with 4 or more units unless the declaration sets a higher bar. Owners who vote no and object in writing within 20 days are paid the greater of their unit’s appraised value or their mortgage balance, less unpaid charges, plus relocation costs.

Property taxes on a Chicago condo

The Cook County Assessor values the whole building, then applies each unit’s percentage of ownership from the condo declaration; the Assessor does not set that percentage. Like other homes, units are assessed at 10% of market value, and owners who live in the unit can claim the homeowner exemption. See how Chicago property taxes are calculated.

Insurance: the master policy and your HO-6

The association’s policy covers the common elements and the units at replacement cost, but it does not have to cover improvements owners have added. You insure your belongings and your improvements with a condo policy, known as an HO-6. Read the master policy’s deductible too: the board can charge it to owners whose unit caused the damage or was affected.

Getting a loan on a Chicago condo

For conventional loans, Fannie Mae retired its streamlined Limited Review for applications dated on or after August 3, 2026, so lenders now review most buildings’ finances in full; buildings with 10 or fewer units can qualify for a waiver of review. From January 4, 2027, a full review requires reserves of at least 15% of the association’s budgeted assessment income. See Fannie Mae’s new condo rules. For FHA, see how to check if a Chicago condo is FHA-approved.

Common questions

What documents should I get before buying a condo in Illinois?

The resale disclosures under Section 22.1 of the Condominium Property Act: the declaration, bylaws and rules, the budget and reserve balance, planned capital spending, the last year’s financial statement, pending lawsuits, insurance, and any unpaid amounts on the unit.

How long does a Chicago condo association have to provide resale documents?

10 business days from a written request. The fee is capped at $375, adjusted yearly for inflation, plus $100 for rush service within 72 hours, and it is charged to the seller.

Can my condo assessment go up a lot?

Yes. If a new budget or separate assessment raises total assessments by more than 15%, owners with 20% of the votes can petition within 21 days for a meeting to vote on it, but the increase stands unless a majority of all owners’ votes rejects it.

Can a developer force me to sell my Chicago condo?

Only if at least 85% of the building’s owners approve the sale under Chicago’s ordinance. Owners who object in writing are paid the greater of appraised value or their mortgage balance, plus relocation costs.

Sources

Cite this page: Chicago First Time Home Buyer, “Buying a Condo in Chicago: What First-Time Buyers Should Check,” reviewed October 18, 2026, chicagofirsttimehomebuyer.com/buying-process/buying-a-condo/.