Homeowner associations’ role in a home sale

Home sale transactions in The Glen generally involve homeowner associations after an agreement has been reached between buyers and sellers. When the Village of Glenview Illinois took ownership of the former Naval Air Station Glenview in the late 1990’s it developed a master plan for its use. The result is what we now know as The Glen with large areas of luxury homes, a retail area known as Glen Town Center, commercial space for corporate and professional offices, and open space as well.

The residential areas were divided into several large parcels, and home builders were allowed to submit bids for development. This resulted in the following neighborhoods being built: Cambridge, Chapel Crossing, Glen Shore, Landings, Southgate, and Tower Crossing. Three additional developments have since been built: Regency, Patriot Commons, and Westgate. The latter two are still under construction. Homeowner associations, generally referred to as HOAs, were created; and they are governed by boards of directors composed of residents.

Generally speaking if a home is being sold in an area governed by a homeowners association – whether it is The Glen or elsewhere – that association will likely be asked to provide governing documents such as articles of incorporation, bylaws, covenants, rules, and regulations. They also are asked for financial information and the status of legal actions. Attorneys representing the buyer, seller, and lender review these documents. It is important for the buyer and the lender to understand the financial and legal health of the association. Among other things they want to know whether there are outstanding obligations that could impact the new owner. If there are lawsuits or excessive debt a buyer may not wish to complete the purchase and/or the prospective lender may choose to deny the home mortgage application.

The HOAs that I am aware of in The Glen are sound, and seldom do I hear of problems that result in a failure of a housing purchase. I am a Glen resident, and I am an active Realtor in the local real estate market. If you may be interested in buying or renting a home in The Glen, please contact me at 847-401-1802 or margaret.ludemann@cbexchange.com.

Margaret Ludemann, Coldwell Banker Realtor