Want to Buy a Home, and Not a Repair Project?
By: Alex Rechenmacher

If you have never bought or sold a home in Illinois, you may not be aware of the Residential Real Property Disclosure Act (“Act”). This legislation includes an important provision requiring that everyone selling residential property with one to four dwellings on it must disclose to prospective buyers certain defects in the property by completing and signing a 22‑question form.

A seller must disclose all defects that he actually knows are present on the property as of the date of completing the form. Although a seller does not have to make his own investigation or inspection of the property in order to complete the form, he must supplement the disclosure form in writing if (a) a mistake was made, (b) an omission was made in completing the document, or (c) a defect becomes known before the date of the closing.

 Even after a supplemental disclosure, a buyer does not have a right to terminate the real estate contract unless the seller had actual knowledge of the defect at the time the disclosure form was completed. Nevertheless, most real estate contracts provide the buyer an opportunity to conduct a professional inspection of the property immediately after the contract is formed and a personal inspection prior to closing to determine that the property has not changed since the contract was signed. If the mistake or omission revealed is not corrected by the date of the pre-closing “walk through” inspection, the buyer will have the right to demand such a repair prior to the closing.

The disclosure form includes a warning that the disclosures may not include prior problems on the property if the seller reasonably believes that they have been corrected, and only reports the current condition of the property. This resolves the question asked by many sellers regarding their obligation in completing the disclosure form: “Do I have to include things that have been fixed such as the air conditioning?” Therefore, prospective buyers are strongly urged to employ professional home inspectors to determine any potential defects in the home.

A buyer has the right to cancel the contract if the seller does not provide the disclosure form before the closing. A seller who does not comply with the Act will be responsible for paying damages to the buyer, court costs, and possibly the buyer’s attorney fees.

 As part of the services provided to our real estate clients, the experienced legal staff members of the Law Offices of Edward P. Graham, Ltd. assist both buyers and sellers in resolving issues related to home condition defects in real estate transactions.  Please contact us (630.357.2333) if we can assist you in your real estate legal needs.