Home Inspections
No one should purchase residential property—condo or otherwise—without a professional inspection performed by a licensed home inspector. Inspection quality varies significantly, so do not simply choose the cheapest option or rely on a brief visual walkthrough.
Before hiring an inspector:
- Ask for a sample inspection report to evaluate detail and clarity.
- Confirm whether they inspect commonly overlooked areas such as:
- Roof and exterior components (even for condos, as roof issues affect the association)
- HVAC, plumbing, and electrical systems
- Load-bearing structures
- Water intrusion and mold risk
- Fire safety systems
- Ask whether the report includes photos, severity ratings, and recommendations / remediation estimates.
- Understand what guarantees, limitations, or exclusions apply.
- Confirm whether they carry Errors & Omissions insurance (E&O).
For condos specifically, ensure the inspector addresses:
- Common property components the HOA must maintain
- Evidence of past water intrusion
- Building envelope condition
- Age and condition of major shared infrastructure
- Visible signs of structural movement
- Fire separation issues between units
A detailed inspection can help identify defects early and provide leverage in negotiations or requests for repair prior to closing.
Insurance Considerations using a CLUE Reports
A CLUE (Comprehensive Loss Underwriting Exchange) report is a claims history document maintained by LexisNexis. It lists up to seven years of property insurance claims for a specific property. Insurance companies use it to determine eligibility, risk, and pricing for future policies.
You are entitled to one free CLUE report annually, and you can dispute errors.
Why this matters for condo buyers:
Unlike single-family homes, condos are impacted not only by claims involving your individual unit, but also by claims originating in adjoining units or common areas. Patterns in past claims can reveal significant building-wide problems.
For example, a CLUE report might show:
Repeated roof leak claimsChronic water damageStructural damage claimsFire-related lossesMold remediation claims
Whether the building has longstanding maintenance or construction issuesWhether the HOA is proactively addressing problems or repeatedly causing themWhether you might face future assessments or repairs
This history gives you insight into:
Insurance impact:
Insurance companies may:
- Increase premiums
- Require higher deductibles
- Or deny coverage altogether
…based on past property claims—even if you weren’t the owner when claims occurred.
Because a condo typically cannot be financed without proof of insurance, a poor property claims history could:
- Make it more expensive to insure
- Delay closing
- Or make the property uninsurable
Recommendation:
Request a CLUE report before purchasing. If denied, run it as soon as you take ownership and dispute any inaccuracies.
Condo Management
Management
Understanding licensing and regulatory authority can help you evaluate a company’s legitimacy and protect yourself if issues arise.
This a good useful guide to know your rights before you start spending a lot of time on individual issues, start by making sure its something that regulated by the law etc.
The Condo Unit Owners Rights and Responsibilities
Mananger licensing
Every manager that works at your property MUST be licensed by the state of Illinois. It is important when researching companies to ensure they are not using unlicensed managers. Lookup managers to ensure they have a license here. Note we have seen managers use their last name instead of their first name to make it hard to file a complain so when searching for a managers license, check combination of their last name without the first name if they initially do not show up.
Make sure to select “COMM ASSOC MGR” as the license type you are searching.
Other Useful links
Illinois Professional Licensing for Community Managers
- What to review in HOA documents
- Understanding reserve studies
- Special assessment risk factors
- Insurance coverage types for condos (HO-6, master policies, etc.)
- Common legal disputes in condos
- How to check for pending litigation before purchase
- HOA financial health checklist