Becoming our own association

Because its a condo you don't have a choice, it will be turned over to you. Now if you care about your house and your money, you will get involved and serve as an officer or on the board.

If you dont care and dont mind paying your dues to someone who may or may not have any idea of what they are doing, dont serve. Many people who run condo associations are not. They just took the job because no one else wanted it and they wanted to control where their money went.

Its a personal choice.

legal ramifications? initially, none, really. You just have a business, a corporation, with no leaders. Like most businesses, no one really cares if the company goes belly up or not, except the shareholders (which you have) and employees (which you don't).

The longer the corporation goes, the more potential legal problems may arise.. without officers to run it, you probably won't buy insurances. Or file/pay taxes. Or maintain common areas. So, when something does happen (someone slips and falls, someone has a window broken by an overgrown tree branch, the pool water turns green, or the IRS comes and asks "why haven't you filed lately?"), or something needs a major fix, then the individual shareholders will be required to pay up, individually.

And, without volunteers to serve, the biggest risk, honestly, is dictatorship. One person, unopposed, with all the money, power and control. that typically doesn't end well.

A property manager for 14 units? Your so silly. I doubt they could afford it.

Even if you hire a property management company which I agree with Steve would potentially be costly due to small number of units, you still will need to have in place a proper functioning association with your directors, proper documentation, etc.

Here is a link for your Condominium State Statutes:

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2200&ChapterID=62

Below is a section in this statute which you need to pay close attention as it will state what is to be turned over to the homeowner’s from the developer and certain actions to be taken:

(765 ILCS 605/18.2) (from Ch. 30, par. 318.2)
Sec. 18.2. Administration of property prior to election of initial board of managers.

Be very sure to get everything from the developer, as at some point this individual will not be in the picture if issues arise in the future.

Also, you need to have a good proper association to protect everyone and the property when they resell. For example in the statutes is a section stating: Sec. 22.1. (a) In the event of any resale of a condominium unit by a unit owner other than the developer such owner shall obtain from the Board of Managers and shall make available for inspection to the prospective purchaser, upon demand, the following …

If you have an association that ends up in a mess then, individuals will have a difficult time in the future finding buyers for their property when they want to sell.

I have not thoroughly read your state statutes, but in some states an association that has no fully functioning board can end up in a receivership. In other words the state or court would appoint an individual to oversee the HOA and the costs are passed on to homeowners. In some cases this may be an attorney who charges a lot of money for said services.

Many of us can help answer questions to help get your HOA on the right track during this time. It may take a little more work initially to insure everything is set up properly, all information from developer, insuring a proper reserve account for future large repairs/expenditures, etc. However, after this initial period it should not take much time and effort from members for your small community to insure a great future.

What all homeowners need to consider is when you purchase within an HOA you have an obligation not only to yourself, but to everyone in your community to participate and insure the property is protected. If the homeowner’s did not want to put forth a little time and effort … then they should not have purchased within an HOA.