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An exception to the general rule of “Caveat Emptor” or “Buyer Beware” is an Illinois law which requires the Seller of a residence to list a number of types of defects in the residence on a form which is required to be furnished the purchaser. The form is required by Illinois law and is called a Residential Real Property Disclosure Report. The form requires the Seller to disclose certain conditions of the property, “to the best of his or her actual knowledge.” A seller who fails to disclose such defects in the property are subject to liability for damages. Illinois law provides a statute of limitations for a suit for such damages. In a recent Illinois case, the court’s opinion found that the Seller had experienced leaks in the roof of the home in several prior years and had repaired the leaks with a silicone substance. When the Seller later sold the home, the court found the evidence showed the Seller did not mention that he had experienced any leaks in the roof in the Disclosure Report he furnished to the Buyer. The Buyer sued the Seller for damages after experiencing leaks. The Seller testified that he did not experience any leaks after making the repairs and apparently considered his Disclosure Report to be truthful. The court found the Seller to be liable. The court held that the Seller’s repairs were insufficient to stop the leaking problems and that the Seller was guilty of fraudulent misrepresentation. Even historical defects which have been repaired should be disclosed to the Buyer. Many times, a buyer might accept a house even if disclosures of certain defects are made. If the Seller in the Illinois case had reported the condition of the roof in the Disclosure Report, the case may have been resolved in the Seller’s favor or better yet, never been brought. The Residential Real Property Disclosure Report contains a detailed checklist of conditions which the Seller of a property is required to disclose to the Buyer of residential real property. The conditions which are required to be reported include a multitude of conditions which are intended to require a Seller to report about every type of defect to residential property which might exist. There are separate requirements under the law to report specific defects which include, without limitation, radon, and lead paint. There are separate requirements under the law to report specific defects which include, without limitation, radon, and lead paint. It is recommended as a result of some recent Illinois Appellate Court cases for a Seller to provide the Buyer with a Mold Disclosure Form. The issue of adequate disclosure of defects by Sellers is the issue of many claims for damages raised by Buyers in Illinois. The duties of a Seller to disclose the condition of a residence in a Residential Real Property Disclosure Report are complex. If you have questions the need for and terms of a disclosure report for a specific transaction, a lawyer can help you understand your rights and obligations. This article is intended to present general information for educational purposes, is not legal advice and should not be relied upon in connection with any particular matter. The reader is advised to immediately retain their own separate legal counsel with respect to any specific legal issue. Rights to bring a claim will expire through the passage of time by the applicable statute of limitations. Ralph E. Elliott practices law at Elliott & Trainor, P.C. which is comprised of Lawyers in Freeport, Illinois who have over 34 years of experience including a Real Estate and a Trial practice. The firm is situated at 1005 W. Loras Drive, Freeport, IL 61032 and serves business, individuals and the agriculture community in Northwest Illinois. ©Elliott & Trainor, P.C. 2012.
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