Deeded versus assigned: Is parking created equal?

May 12, 2002|By Mark Pearlstein. Special to the Tribune.

Q. What is the significance of a deeded parking space versus an assigned parking space? Why is one better than the other?

In our condominium, we have assigned spaces. Some of the owners who do not drive would like to sell their parking spaces to others who would like to buy them. Because they are assigned, however, these owners cannot sell their spaces.

The board is wondering if there is any sense, value or detriment to going through the trouble to amend the declaration to make the spaces deeded.

A. A deeded parking space is preferable to the individual unit owner, but assigned spaces maximize the chances for all owners to obtain parking.

The term "deeded parking spaces" has two forms: The space is classified as an individual unit with a separate percentage of ownership, or the space is assigned to a particular unit as a limited common element. Developers can maximize their return for the space by selling it separately or including the limited common element space in the unit price.

An assigned parking space generally means that the parking area is part of the common elements, and spaces are assigned by the board through some form of waiting list.

If parking spaces are assigned, residents do not own their space, nor do they have any exclusive right to those areas with their unit. Thus, users of assigned spaces cannot transfer this portion of the property. An amendment to the declaration that will convert the parking area from common elements to limited common element spaces will require approval by a super majority of the owners. Given the fact that only some owners may benefit from an assigned space, this amendment may be difficult to pass.

Q. I recently moved into a condominium unit. Because it is my first experience with this form of ownership, I am a little confused. After reading our declaration and by-laws and rules before buying, it appears that the board doesn't adhere to these documents in some respects.

Non-emergency decisions are being made over the phone, e-mail and later in an open meeting by putting these decisions into the minutes. Shouldn't the final decision be voted by the board at an open meeting when owners are present?

A unit owner sustained damage to his unit caused by a water leak arising from the shut-off valve of his residence. In this case, however, the board used association money to repair his unit damage. Wasn't this the responsibility of the owner?

Recently, we received a budget for the current fiscal year. If our documents state that the budget should consist of estimated common expenses, shouldn't it have listed estimated income from interest, clubhouse rental, late payments, etc.? Under expenses in the budget, there is a line item called "contingencies." Shouldn't this money be placed in certain particular categories such as administrative, operations or maintenance?

A. Generally, all decisions of the board must be made at an open meeting when owners are present. Under the Illinois General Not-For-Profit Corporation Act, condominium boards can also make decisions by unanimous written consent.

Telephone polls are not authorized by the corporate statute or the Illinois Condominium Property Act. While the board members may discuss an issue by telephone, formal written consent of all the directors is required to validate action not taken at a meeting. E-mail is a popular means of communication by boards, but under current law, is not a substitute for decisions at an open meeting.

Owners are generally responsible for all damage to furnishings within their unit. Most declarations provide that units are also responsible for repair and maintenance to any pipes or appliances located solely within and affecting only a particular unit.

Income from sources other than assessments, including interest, clubhouse rental and other miscellaneous items, should be referenced in the budget. The board may create a contingency line item, which generally covers any expense classification that may exceed budget levels.

Q. Help. My condominium association recently changed our cable subscriber. I am not satisfied with the level of programs from the new cable provider and want to return my service to the original company.

However, my association president advised me that all association members must subscribe to the new provider.

This requirement does not seem fair or constitutional. Do I have any recourse?

A. The board of directors has a right to obtain cable television service from a single subscriber as a common expense. Section 18.4(o) of the Illinois Condominium Property Act specifically authorizes a condo board to obtain cable television service for all units and assess owners for this cost.

Board members have the authority to administer the property and determine the services and contractors that will serve the best interests of the association.

