Elgin — Ch. 16.46 Residential Condominium Conversions § 16.46.040
Warranty provisions
Operative Text
A. Any developer of a property submitted subject to the provisions of the Illinois Condominium Property Act, as amended, shall be required to provide a warranty against any defects in the following property components: 1. Roof. 2. Foundation. 3. External and supporting walls. 4. Central heating plant. B. Said warranty shall cover the defects listed in this section for a period of one (1) year from the date control of the condominium property passes to the board of managers. C. Repair or replacement of the defects listed in this section shall be performed in a timely manner by the developer following notification by the board of managers. D. Warranty coverage shall not include the cost of normal, routine maintenance of the property components listed in this section or defects caused by fire (not related to any breach of warranty), force majeure, vandalism or negligence of a unit owner. E. To ensure compliance with this section, the developer shall, at the time of each closing, procure a performance bond from a surety authorized to do business in the state, or other similar financial security as approved by the corporation counsel, in an amount equal to one (1) percent of the total of each unit sale price. Said performance bond or other similar financial security shall identify the city and the board of managers as obligees or beneficiaries, as the case may be, and shall remain in effect for a period of not less than one (1) year from the date control of the condominium project passes to the board of managers. The developer shall notify the director by registered or certified mail that control of the condominium project has passed to the board of managers within five (5) days of the passage of control. At least sixty (60) days prior to the expiration of the performance bond or other similar financial security, the developer shall notify the board of managers and the affected unit owners by certified mail of the date upon which the performance bond or other similar financial security will expire.
Elgin Ch. 16.46 § 16.46.040 requires that any developer converting a residential property into condominiums provide a one-year warranty covering the roof, foundation, external and supporting walls, and central heating plant. The warranty period begins when control of the condominium passes to the board of managers, and the developer must repair or replace covered defects in a timely manner after being notified. Normal maintenance costs and damage from fire (unrelated to a warranty breach), force majeure, vandalism, or unit-owner negligence are excluded from coverage. To back this obligation, the developer must obtain a performance bond — equal to one percent of each unit's sale price — naming the city and the board of managers as beneficiaries, and must provide advance notice before that bond expires.
Plain English — not legal advice.
Developers subject to Elgin Ch. 16.46 § 16.46.040 generally secure a performance bond at each unit closing, calculated at one percent of the sale price, and ensure the bond names both the City of Elgin and the board of managers as obligees. Compliant developers send registered or certified mail to the director within five days of control passing to the board, and send certified-mail notice to the board and all affected unit owners at least sixty days before the bond expires. Timely response to warranty claims covering the roof, foundation, exterior and supporting walls, and central heating plant — within the one-year warranty window — is a core operational obligation under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Elgin Ch. 16.46 § 16.46.040, purchasers of converted condominium units benefit from a one-year structural warranty covering the roof, foundation, external and supporting walls, and central heating plant, backed by a developer-funded performance bond. If defects in those components appear during the warranty period, the board of managers has the authority to notify the developer and demand timely repair or replacement. Unit owners who believe warranty obligations are not being met may raise the issue with the board of managers, review the performance bond terms (on which the city and board are named beneficiaries), or consult a tenant-rights or housing organization familiar with Illinois condominium law for guidance on available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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