Enabling 22.1 Resale Disclosures

What Is a 22.1 Disclosure?

When a unit in your association is being sold or refinanced, Illinois law (765 ILCS 605/22.1) requires the association to provide a disclosure package containing key financial and legal information about the property. This package gives buyers, lenders, and attorneys a clear picture of the association's health — reserve balances, pending litigation, insurance coverage, outstanding assessments, and more.

Nestingbird handles the entire 22.1 disclosure process: the board maintains association-wide data, owners generate unit-specific documents, the board reviews and signs off, and the approved package is distributed securely to the relevant parties.

Step 1: Board Completes the Base Disclosure

Before any owner can generate a disclosure, the board needs to provide current association-wide information. From the Dashboard, look for the HOA Disclosure Questionnaire card and click through to fill out the base disclosure form. This form covers:

Building statistics — total units, owner-occupied count, rental units, units in foreclosure, and delinquent units.
Financial information — reserve fund balance, pending special assessments, and planned capital expenditures.
Legal compliance — pending lawsuits, building code violations, and municipal violations.
Rental restrictions — rental policies, lease restrictions, right of first refusal, and pet policies.
Insurance information — carrier and coverage details.
Association information — management company and manager contact details.
Services and documents — what's included in assessments and which governing documents are available.

A progress bar tracks your completion percentage. The more complete this data is, the faster individual disclosures can be generated. Keep this information current — review and update it whenever material facts change, such as after approving a new budget, settling a lawsuit, or renewing insurance.

Step 2: Owner Generates a Disclosure

When an owner is selling or refinancing their unit, they can generate a 22.1 disclosure from the Dashboard. The disclosure form pulls in the association-wide data the board already provided and asks the owner to confirm unit-specific details — current assessment amount, outstanding balance, and compliance status.

Once the owner completes and submits the form, the document moves into Pending Review status and all board administrators are notified by email that a disclosure is waiting for approval.

Step 3: Board Reviews and Approves

Board members can review pending disclosures from the Dashboard or by navigating to the seller documents section. During review, the board can:

Edit the document — correct any inaccurate information before approval.
Approve and sign — the approving board member provides their name, title, and signature to certify the information is accurate as of the approval date.

Once approved, the document is locked from further edits, the owner is notified, and a 30-day validity window begins. The approved disclosure expires automatically 30 days after approval — if the transaction hasn't closed by then, a new disclosure will need to be generated.

Step 4: Distributing the Package

After approval, the board can distribute the disclosure package to the relevant parties. Click Distribute on the approved document and add recipients:

Buyer — the prospective purchaser.
Agent — the real estate agent handling the transaction.
Attorney — the buyer's or seller's lawyer.
Other — bank representatives, title companies, or anyone else who needs the information.

Each recipient receives a secure, unique link to view the disclosure online and download a PDF. Nestingbird tracks when each recipient first views the document and how many times they access it, giving the board visibility into engagement.

Questions from Recipients

Recipients can submit questions directly through their secure link. The board is notified of each new question and can respond from within Nestingbird or by replying directly to the notification email. Answers are appended to the disclosure as a Q&A addendum and shared with all recipients, keeping everyone informed. The PDF is automatically regenerated to include the latest Q&A.

Expiration and Renewal

Approved disclosures are valid for 30 days. Nestingbird sends a reminder email 7 days before expiration so the board and owner have time to act. Once expired, the document moves to an archived state and is no longer valid for legal purposes. If the transaction is still in progress, the owner will need to generate a fresh disclosure to ensure all information is current.

Plan Requirement

22.1 resale disclosures require the Good Standing plan or above.