Illinois’ Residential Real Property Disclosure Act protects home buyers by requiring sellers to provide accurate information about the conditions of their properties. Prior to the Act, Illinois law did not require sellers to proactively disclose details about their properties, which meant buyers could face unexpected and costly repairs after purchasing homes. The Act requires sellers to fill out a disclosure form that lists known material defects so buyers can make more informed decisions.

 

Types of Covered Properties and Exemptions Under the Act

The Act applies to most residential properties, including single-family homes, multi-family dwellings with up to four units, condominiums, and cooperatives. However, certain property types and transfer scenarios are exempt. Exemptions include:

 

  • Newly constructed homes that have not yet been occupied
  • Commercial properties
  • Foreclosed properties
  • Transfers resulting from legal proceedings such as divorce or probate
  • Transfers between co-owners and within families

 

These exemptions are for situations in which sellers might lack comprehensive knowledge about their properties or when property transactions involve unique legal requirements outside a traditional sale.

 

What Sellers Must Disclose

Under the Act, sellers must disclose any material defects they are aware of that could impact a property’s value or safety. The disclosure form includes questions about more than 20 property conditions, ranging from structural issues like foundation cracks to environmental concerns like radon or asbestos contamination. Additionally, sellers must report on the condition of major systems in the home, such as HVAC, electrical, and plumbing systems. It’s worth noting that these disclosures pertain to current issues known to the seller, so sellers aren’t required to investigate or inquire beyond their existing knowledge. Buyers receive completed disclosure forms before signing purchase agreements so they can review a property’s condition comprehensively in advance.

 

What Is a “Material Defect”?

The Act defines a material defect as a condition that significantly impacts a property’s value or safety. Examples include foundation instability, persistent flooding, unsafe asbestos levels, or damaged electrical systems. The term “material” indicates that the defect would have a notable effect on a property’s desirability or livability if it goes unaddressed. Buyers must pay close attention to these disclosures, which represent significant factors that could require costly repairs.

 

Seller Liability for Incomplete or False Disclosures

Sellers can face significant liability if they fail to disclose known material defects or provide false information on disclosure forms. Buyers can take legal action if they discover material defects that a seller did not report and can prove the seller knowingly omitted or falsified information. Buyers can seek actual damages (money) to cover repair costs and, in some cases, legal fees. Sellers can avoid potential liability by ensuring their disclosures are accurate, detailed, and up-to-date. The Act also protects sellers if they genuinely believe issues were resolved or were unaware of certain defects. However, dishonesty or carelessness in completing disclosure forms can lead to costly consequences.

 

Contact an Illinois Real Estate Lawyer

Don’t leave your transaction to chance if you’re buying or selling a home in Illinois. Contact the Law Office of Vogel and Mourelatos, LLC, for an initial consultation. Our real estate attorneys are deeply familiar with Illinois law and can guide you through the disclosure process, answer your questions, and help you protect your interests.