icon on Parking is often one of the most valuable and contentious features in a condominium (especially in downtown Chicago). However, according to the Illinois Condominium Property Act, not all parking spaces are created equal. The legal classification of your parking space determines your rights, responsibilities, and even your ability to sell or transfer it. Misunderstanding these distinctions can lead to costly surprises during a purchase, sale, or dispute with your association.
This article explains the three legal types of condominium parking spaces in Illinois; deeded, limited common element (LCE), and assigned - and highlights why knowing the difference matters.
Deeded Parking
A deeded parking space is owned in ‘fee simple’, just like the condo unit itself. It’s often referred to as a “Parking Unit” (as opposed to residential Dwelling Unit). It has its own Permanent Index Number (PIN) and thus its own property tax bill, and the owner must pay separate monthly assessments for this deeded property.
Because it is a separate parcel of real estate, transferring or changing ownership requires a recording and delivery of a deed. Unlike the other forms of parking ownership, deeded parking can usually be sold or leased independently (subject to association rules) and qualify for title insurance.
Limited Common Element (LCE) Parking
An LCE is part of the common elements of a condominium but is reserved exclusively for one unit owner - such as a parking space, balcony, or storage space. The physical concrete, or the garage structure if the space is indoors, is owned by the association. However, the association’s governing documents state that the unit owner has an exclusive right to use the parking space that passes with the unit upon sale.
The declaration can never be amended to reassign that parking space to another owner unless there is unanimous consent of the unit owners - and presumably, the owner with this parking space would never voluntarily approve such a reassignment. As such, LCE parking ownership is no less desirable or less secure than owning a deeded parking space.
However, the one limitation is that an owner is legally prohibited from selling or conveying the parking space to a non-owner third party. Instead, it can only be reassigned to another unit in the condominium by way of an amendment to the association’s governing declaration.
Assigned Parking
The final type of parking in a condominium, which is the least desirable, is when an owner has an “assigned parking space”. In this form of ownership, there typically is a common element parking lot, or parking garage, with the board having the power and discretion to assign parking spaces to particular owners. As the owner’s parking right is more informal, assigned spaces cannot be sold or leased independently and do not carry title insurance. This type of parking arrangement is most likely seen in older condominium developments from the late 1960s and 1970s, prior to modern condominium law creating limited common elements.
This type of parking can often become problematic when an owner enters into a contract to sell his or her condominium, especially if the sale contract does not clearly indicate that the parking is assigned. The seller may have parked in that space for years, or even decades, but the reality is that, legally, the parking space can be taken away at the mere whim of the association board.
If you or your association needs guidance on condominium parking rights or declaration amendments, please contact our firm for experienced legal counsel.