Condo Corner: Disclore Duties in Condo Sales

Buying or selling a condo is complicated enough. Add in a situation where the listing realtor also lives in the same condo development, and new concerns arise about disclosure, transparency, and trust.

What Is a 22.1 Disclosure?

In Illinois, condo associations are required to provide buyers with a “22.1 Disclosure” package. This includes key information like budgets, pending litigation, special assessments, and rules of the association. Buyers rely heavily on this document to understand the financial and structural health of the building.

The Realtor’s Independent Duty

While the 22.1 disclosure is important, it doesn’t cover everything. Realtors — whether they live in the building or not — have a legal and ethical duty to disclose material facts they know about the property. That duty exists even if the condo board leaves something out of the official disclosure.

If a realtor lives in the development, they may be uniquely aware of issues that don’t show up on paper:

• Water leaks or structural repairs discussed informally.
• Special assessments that are being planned but not yet voted on.
• Disputes between owners and the board.
• Signs of financial distress or poor management.

Why This Matters

If a realtor downplays or hides problems because they want the sale to close — or because they have a personal interest in protecting values where they live — this can create a conflict of interest. Worse, it can expose both the seller and realtor to legal liability if the buyer later discovers undisclosed problems.

Best Practices for Buyers and Sellers

• Don’t rely solely on the 22.1. Review board meeting minutes and ask questions directly to the association.
• Ask your realtor directly: “Are you aware of any issues not reflected in the 22.1?”
• Insist on transparency. A realtor’s job isn’t just to get the deal done — it’s to protect their client.

Final Thoughts

Living in the same condo community doesn’t automatically disqualify a realtor from representing a seller. But it does raise the stakes for disclosure. Buyers should remain vigilant, and ethical agents should remember that honesty and transparency build long-term trust — which is more valuable than any single commission.