Residential Real Property Disclosure Act
Residential Real Property Disclosure Act (765 ILCS 77/)
In Illinois, certain residential real estate transactions are subject to the Residential Real Property Disclosure Act (765 ILCS 77/) (the “Disclosure Act”).
When engaging in residential real estate transactions that are subject to the Disclosure Act, the seller must complete the Residential Real Property Disclosure Report form described in Section 35 of the Disclosure Act. Specifically, the seller must disclose if the seller is “aware” of a “material defect” in certain aspects of the residential real property that are listed on the Residential Real Property Disclosure Report form that is to be attached to each contract subject to the Disclosure Act.
The Disclosure Act defines “aware” as having “actual notice or actual knowledge withing any specific investigation or inquiry.” See 765 ILCS 77/25. The Disclosure Act defines “material defect” as being “a condition that would have a substantial adverse effect on the value of the residential real property or that would significantly impair the health or safety of future occupants of the residential real property unless the seller reasonably believes the condition has been corrected.” Id.
The Disclosure Act also states “the seller is not liable for any error, inaccuracy, or omission of any information delivered pursuant to the Disclosure Act if (1) the seller had no knowledge of the error, inaccuracy, or omission, (ii) the error, inaccuracy, or omission was based on a reasonable belief that a material defect or other matter not disclosed had been corrected, or (iii) the error, inaccuracy, or omission was based on information provided by a public agency or by a licensed engineer, land surveyor, structural pest control operator, or by a contractor about matters within the scope of the contractor's occupation and the seller had no knowledge of the error, inaccuracy, or omission.”
Moreover, the Disclosure Act requires the seller to supplement their Residential Real Property Disclosure Report form if the seller “becomes aware of an error, inaccuracy, or omission in any prior disclosure report or supplement after delivery of that disclosure report or supplement to a prospective buyer.” See 765 ILCS 77/30.
There are several other nuances and factors to consider when evaluating cases that deal with the Disclosure Act that have been defined by the always evolving case law and other variables.
Our attorneys have prosecuted and defended numerous cases dealing with the Disclosure Act, and have prevailed through settlement and trial. Not only has our representation resulted in our clients recovering a substantial amount of money in actual damages, but our clients have also been reimbursed costs attorney’s fees in cases dealing with the Disclosure Act pursuant to 765 ILCS 77/55 when we have represented both buyers and sellers.
Do not risk making a mistake when it comes to the Disclosure Act, as these cases are becoming more and more common, and can be quite costly and time consuming. If you or someone you know has questions about the Disclosure Act, or is involved in a real estate dispute related to the Disclosure Act, contact the McCann Law Firm to speak with an attorney that has experience litigating and winning Disclosure Act cases.
