Illinois Court Ruled Condo Sellers Cannot Sue Over Fees
The Supreme Court has limited how condo sellers can challenge document fees charged by management firms.
Updated on Sept. 29, 2026 in Residential
Live Poll
Should condo owners be able to sue management companies over the cost of disclosure documents?
The Illinois Supreme Court ruled in a 6-0 decision that condo sellers cannot sue management firms for charging excessive document disclosure fees. This decision bars sellers from using the Consumer Fraud Act to challenge these costs in court.
Why it matters
The ruling clarifies that sellers lack a private right of action under the Condominium Property Act to litigate disclosure fee disputes. It establishes that high pricing alone does not meet the legal threshold for deceptive business practices in this context.
Management firms are currently bound by a statutory cap of $375 for disclosure documents, with an additional $100 allowance permitted for expedited service. This follows a dispute involving a $470 fee that exceeded the total $475 limit cited in appellate review.
The players
Illinois Supreme Court
The state's highest judicial authority that sets legal precedents for property and consumer law.
Lieberman Management Services
A property management firm that faced a consumer fraud claim regarding its document disclosure fees.
Franklin Friedman
The seller whose challenge to a $470 condo document fee became the basis for this legal test case.
The details
The court evaluated a complaint brought by the successor trustee of the Franklin Friedman trust, who challenged fees charged by Lieberman Management Services. Justices determined that the legislature did not intend for condo sellers to trigger litigation over these costs. While fees are regulated by state law, the court held that charging a high price does not constitute fraudulent conduct under the Consumer Fraud Act.
Timeline
October 7, 2016: Franklin Friedman closed on a condo unit sale.
December 2022: Supreme Court resolved Channon v. Westward Management dispute.
September 24, 2026: Illinois Supreme Court issued ruling on condo fees.
The Home Front
This decision curtails the ability of homeowners to use consumer protection litigation as a tool for enforcing statutory fee caps in real estate transactions. It reinforces the state’s current regulatory framework for property management disclosures.
If you are planning to sell a condo, verify the disclosure fees against the current $375 statutory limit plus any eligible expedited service charges. Keep records of all closing costs and discuss any concerns about fee structures with a licensed real estate attorney before proceeding.
The takeaway
Sellers should note that judicial avenues for contesting management document fees are now effectively closed under the current interpretation of state law. Moving forward, homeowners should prioritize reviewing their management contract fee schedules well before listing their property.
Further reading
Learn more about local regulations for homeowners in our Residential section.
Source note: This article includes information reported by Legal Newsline.
Live Poll
Should condo owners be able to sue management companies over the cost of disclosure documents?
