Buying at foreclosure sale can require payment of unpaid dues
Q. I purchased a condominium at a foreclosure sale about two months ago. Yesterday, I received a notice from the condo association telling me I owe them six month's association dues. How could I owe them money for time I did not own the property?
A. Section 9 of the Illinois Condominium Property Act (765 ILCS 605/9(g)(3) provides that the purchaser of a condominium unit at a judicial foreclosure sale, other than a mortgagee, shall be responsible for the six months of assessments immediately preceding institution of an action to enforce the collection of assessments. As a general rule, this means you, as a purchaser at the foreclosure sale, would be responsible for six months of assessments.
You may wish to consult a real estate attorney for additional information regarding this issue.
About 14 months ago, I signed a one-year lease to rent the downstairs apartment of a two flat. The rent was $1,200 per month. The year was up two months ago and nothing was said between me and the owner. I stayed in the apartment and sent her $1,200 for September and $1,200 for October. My checks were cashed and I heard nothing.
A few days ago, I received a letter from the owner. She stated that I was a "holdover tenant" and that the rent was now $2,400 per month, per the lease. She also stated that if I wished, I could sign another one-year lease for $1,600 per month, effective last September. She said if I wished to enter into the new lease, I had to send her $800 immediately to cover the two months difference between $1,200 and $1,600.
I cannot afford $1,600 per month. I would prefer to just move out. I just need a couple weeks to find something.
What are my options? Do I owe her $2,400 for the last two months? Can she just raise my rent to $1,600 per month? Can I get a little time to move out?
A. I would need to review the lease to offer a definitive answer to your questions; however, I will offer some general thoughts I hope will be helpful.
Most form leases do contain holdover provisions that significantly raise the rent. You should review these provisions as there is often a restriction as to when the owner may make an election under the holdover provisions.
Regardless of what is contained in the lease regarding holding over, I believe you could make a strong case that either a new one-year lease or a month-to-month lease has been created, at $1,200 per month. The fact that the owner accepted and cashed your $1,200 payment for both September and October would serve as a basis to legally establish a new one-year or month-to-month lease.
If you wish to stay, you have a couple of options. Do nothing, keep paying $1,200 per month and wait for the owner to do something. If she files an eviction, you would still have at least a month before an Order of Possession was obtained - plenty of time to find new living arrangements. Of course, you would need to respond to the complaint, as she may very well be seeking money damages in addition to possession of the property.
Another option would be to contact the owner, tell her you have contacted an attorney who says you can stay for $1,200 per month and see what she says. Maybe the two of you can work something out.
• Send your questions to Attorney Tom Resnick, 345 N. Quentin Road, Palatine IL 60067, by e-mail to tdr100@hotmail.com or call (847) 359-8983.