Q–During my long years of working for a builder, it was my job to obtain contracts from subcontractors. Now I am on the board of directors of our condominium building, which consists of 35 units.
When I worked for the builder, it was my duty to make sure subcontractors had certificates of insurance for their liability, including workmen’s compensation coverage, and all necessary waivers of lien for labor and materials.
In our condo building, the officers seem to be negligent in obtaining proof of insurance coverage and waivers of lien before final payment for work that has been completed. Isn’t it vital for our association to obtain these documents for all work performed?
A–Insurance and mechanic’s lien protections are key provisions in any contract for a community association. Necessary insurance coverage from the contractor includes workmen’s compensation, automobile liability, on-site materials, as well as property damage and personal injury.
The certificate of insurance for each contractor should name the board of directors, the association and the managing agent as additional insured parties. Under Illinois mechanic’s lien law, a property owner is protected from unknown claims by securing a sworn contractor’s statement before making payment.
In addition to this sworn affidavit, the association should obtain waivers of lien from each party supplying labor and materials for the work. An association can ill afford to defend against claims by subcontractors who have not been paid by their general contractor.
Q–Recently, an elderly woman who lives above me in our Chicago high-rise condo building left her water running in the master bathroom. She flooded her unit, and the water spilled into mine, causing damage to walls, carpeting and clothes. This is the second incident of this nature.
While talking to her on several occasions over the last couple of months, I believe that she may be senile. This may be the reason that she leaves the water running in her unit. The building manager and I tried to persuade my neighbor and her daughter to deliver insurance information so that I can make a claim.
What if my upstairs neighbor forgets to turn her water off again? Can the building management company or the board force her to sell her unit? What if she is truly senile?
When collecting from my neighbor’s insurance company, the claims agent said his company may not be liable under certain provisions in the condo rules and regulations. Does this sound accurate?
I also had to spend a lot of time on this matter from work. I did not include any claims for lost time, but if a similar event occurs in the future, can I make a claim for my time?
A–The situation that you describe happens all too frequently, particularly in high-rise buildings.
While legal action is theoretically possible, the best approach is for management to contact family members of the elderly unit owner, or a social service agency, whose members may be able to monitor or relocate the individual to a more protected environment.
Legally, the board of directors can file suit against an individual whose conduct constitutes a nuisance or annoyance to others. Most declarations also provide for a remedy calling for an involuntary sale of the unit if the individual consistently violates association regulations.
The association can also proceed under the Illinois Mental Health Code to have the individual involuntarily committed. This course of action is extremely difficult to accomplish and probably not prudent in light of the costs
The insurance agent may have referred to a clause in the declaration which states that a unit owner is liable for damage to another residence to the extent that the loss is not covered by insurance.
However, a person causing damage to a unit is liable for his or her actions. Section 9.1 of the Illinois Condominium Property Act essentially makes a unit owner responsible for any action or event which arises from the unit.
Finally, there is no basis for you to claim damages for lost time. Your recovery is limited to property damage.
Q–Our condominium association last revised its rules and regulations in 1978. A copy of the rules was furnished to every unit owner at that time.
Since then, distribution to new owners has been on a hit-or-miss basis. There is no system in place to provide a copy of the rules to new owners over the years.
Can a unit owner be cited for a violation of the rules when the owner has not been provided with a printed copy? Board members walk the property in the spring and normally issue numerous violations to homeowners.
A–Unit owners are responsible for obtaining copies of condominium documents from their sellers or the association. Under the Condominium Act, all unit owners are subject to the declaration and bylaws and the rules and regulations. Every owner must obtain these documents and read them.
Owners may obtain and pay for copies of the declaration and rules from the association. Failure to receive a copy of either document is not a defense when it comes to a violation of the rules.
To avoid what is otherwise an invalid defense, your board can initiate a process that ensures delivery of the documents to each purchaser upon receipt of the sales contract.
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Mark Pearlstein is a Chicago lawyer who specializes in condominium law. Write to him c/o Condominiums, Real Estate Section, Chicago Tribune, 435 N. Michigan Ave., Chicago, Ill. 60611. Sorry, he can’t make personal replies.
