The Illinois Supreme Court recently ruled on a case involving fees charged for condominium disclosure documents, impacting condominium sellers across the state. The court's decision, delivered on September 24, 2026, affirmed previous rulings that dismissed a lawsuit against Lieberman Management Services, Inc. The case, Greenswag v. Lieberman Management Services, Inc., revolves around whether the fees charged by the management company were excessive and if sellers have a legal claim under the Consumer Fraud Act.
Deborah Greenswag, as the successor trustee of the Franklin P. Friedman Living Trust, brought the case after her predecessor, Franklin Friedman, alleged that Lieberman charged an unreasonable fee of $470 for the required disclosure documents. This ruling is significant because it clarifies the legal rights of condominium sellers in Illinois and the limitations of fees that can be charged by property management companies.
The dispute began when Franklin Friedman, who owned a condominium unit in the Mission Hills Condominium Association, sought to sell his property in 2016. Under the Illinois Condominium Property Act, sellers must provide specific documents to potential buyers. Lieberman, the management company for the association, charged Friedman $470 to prepare and deliver these documents. Friedman claimed this fee was excessive and filed a lawsuit against Lieberman.
Friedman's lawsuit included multiple counts, asserting that Lieberman violated the Condominium Property Act by charging an unreasonable fee. The case progressed through the Cook County Circuit Court, where the circuit court granted Lieberman’s motion to dismiss some of the counts. After Friedman’s death, Greenswag was substituted as the plaintiff.
The appellate court affirmed the circuit court's dismissal, leading Greenswag to appeal to the Illinois Supreme Court. The Supreme Court's ruling hinged on whether the Condominium Property Act provides a private right of action for condominium sellers against property managers for allegedly charging excessive fees. The court had previously addressed a similar issue in a case known as Channon v. Westward Management, Inc.
In its ruling, the Illinois Supreme Court stated, "section 22.1 of the Condominium Property Act does not create an implied private right of action by a condominium unit seller against an agent of a condominium association or its board of managers for allegedly violating the fee limitations set forth in section 22.1(c)." The court emphasized that the purpose of the Condominium Property Act is to protect potential buyers, not sellers.
The court's decision also noted that the recent amendment to the Condominium Property Act, which set a maximum fee of $475 for disclosure documents, further clarified what constitutes a reasonable fee. The court concluded that the $470 fee charged by Lieberman fell within this limit and therefore could not support a claim under the Consumer Fraud Act.
This ruling has implications for condominium sellers throughout Illinois. It indicates that sellers may have limited recourse against management companies for fees related to disclosure documents. The court's decision reinforces the idea that the law primarily aims to protect buyers rather than sellers in these transactions.
Going forward, this ruling may discourage similar lawsuits from condominium sellers who believe they are being charged excessive fees. It sets a precedent that management companies can charge fees as long as they remain within the statutory limits established by the Condominium Property Act. Additionally, the ruling reflects the court's interpretation of the legislative intent behind the law, which prioritizes the rights of buyers.
As for what’s next, it is unclear if Greenswag will pursue further legal action or if there are related cases pending. The court's ruling is final unless appealed to a higher court, which is unlikely given the nature of the case. The outcome may prompt further discussions on the fairness of fees charged by condominium management companies and the need for potential legislative changes in the future.