Financial assurances; deposit.
Municipal Code of Chicago § 5-11-070
in effect5-11-070 Financial assurances; deposit.
In order to exercise its right of first refusal (a) in a rental property consisting of five or more dwelling units, the tenant association or assignee under Section 5-11-080 shall provide the owner with a letter of interest or letter of intent from a community organization, lender, or community development financial institution indicating that the purchaser is in the process of obtaining preapproval for financing the purchase; and (b) in a rental property consisting of four units or fewer, the tenant association, tenant(s) under Section 5-11-060(b)(3), or assignee under Section 5-11-080 shall provide the owner with a preapproval letter from a lender. The owner shall not require the tenant association or tenant(s) under Section 5-11-060(b)(3), to pay a deposit of more than 5 percent of the contract sales price in order to make a contract. The owner must refund the deposit in the event of a good faith failure of the tenant association or tenant(s) to perform under the contract.
(Added Coun. J. 9-18-24, p. 16736, § 3; Amend Coun. J. 12-11-25, p. 21650, § 1)
Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2701723Fetched: 10/24/2026