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90_HB0358
765 ILCS 77/5
765 ILCS 77/25
765 ILCS 77/30
765 ILCS 77/35
765 ILCS 77/40
765 ILCS 77/55
Amends the Residential Real Property Disclosure Act.
Provides that the Act applies only to a "seller" who is a
person or entity with a legal or equitable interest in the
residential real property and either has occupied or has had
management responsibility for the property. Provides that
the seller shall supplement the disclosure document if it
contains known errors or is subsequently rendered inaccurate
before closing. Adds to the disclosure report form a note
that the disclosures reflect the current condition of the
premises and do not include previously corrected problems.
Provides that if a material defect is disclosed in a
supplemental document, then the prospective buyer shall not
have the right to terminate the contract unless the seller
had actual knowledge of the defect before the initial
disclosure. Provides that if the seller fails or refuses to
deliver the disclosure document before the conveyance of the
residential property, then the buyer shall have the right to
terminate the contract.
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LRB9000211PTcw
1 AN ACT to amend the Residential Real Property Disclosure
2 Act by changing Sections 5, 25, 30, 35, 40, and 55.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Residential Real Property Disclosure Act
6 is amended by changing Sections 5, 25, 30, 35, 40, and 55 as
7 follows:
8 (765 ILCS 77/5)
9 Sec. 5. Definitions. As used in this Act, unless the
10 context otherwise requires the following terms have the
11 meaning given in this Section.
12 "Residential real property" means real property improved
13 with not less than one nor more than 4 residential dwelling
14 units; units in residential cooperatives; or, condominium
15 units, including the limited common elements allocated to the
16 exclusive use thereof that form an integral part of the
17 condominium unit.
18 "Seller" means every person or entity who has a legal or
19 equitable interest in the residential real property and
20 either has occupied or has had management responsibility for
21 the an owner, beneficiary of a trust, contract purchaser or
22 lessee of a ground lease, who has an interest (legal or
23 equitable) in residential real property.
24 "Prospective buyer" means any person or entity
25 negotiating or offering to become an owner or lessee of
26 residential real property by means of a transfer for value to
27 which this Act applies.
28 (Source: P.A. 88-111.)
29 (765 ILCS 77/25)
30 Sec. 25. Liability of seller.
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1 (a) The seller is not liable for any error, inaccuracy,
2 or omission of any information delivered pursuant to this Act
3 if (i) the seller had no knowledge of the error, inaccuracy,
4 or omission, (ii) the error, inaccuracy, or omission was
5 based on a reasonable belief that a material defect or other
6 matter not disclosed had been corrected, or (iii) the error,
7 inaccuracy, or omission was based on information provided by
8 a public agency or by a licensed engineer, land surveyor,
9 structural pest control operator, or by a contractor about
10 matters within the scope of the contractor's occupation and
11 the seller had no knowledge of the error, inaccuracy, or
12 omission.
13 (b) The seller shall disclose material defects of which
14 the seller has actual knowledge.
15 (c) The seller is not obligated by this Act to make any
16 specific investigation or inquiry in an effort to complete
17 the disclosure statement.
18 (d) The seller is under no obligation to amend the
19 disclosure document after its delivery to a prospective buyer
20 unless the disclosure document contains errors, inaccuracies,
21 or omissions of which the seller had actual knowledge at the
22 time the disclosure document was completed and signed by the
23 seller. However, seller shall remain subject to the
24 provisions of Section 45 of this Act.
25 (Source: P.A. 88-111.)
26 (765 ILCS 77/30)
27 Sec. 30. Disclosure supplement. The seller shall
28 supplement the disclosure document with a new written
29 disclosure after its delivery to a prospective buyer if any
30 previous disclosure document contains errors, inaccuracies,
31 or omissions of which the seller has actual knowledge, or if
32 the disclosure document is rendered inaccurate at closing by
33 any act or occurrence prior to closing If information
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1 disclosed in accordance with this Act is subsequently
2 rendered inaccurate as a result of any act, occurrence,
3 incident, or agreement subsequent to the delivery of the
4 required disclosure document, the inaccuracy resulting
5 therefrom from does not constitute a violation of this Act.
6 (Source: P.A. 88-111.)
7 (765 ILCS 77/35)
8 Sec. 35. Disclosure report form. The disclosures
9 required of a seller by this Act, shall be made in the
10 following form:
11 RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT
12 NOTICE: THE PURPOSE OF THIS REPORT IS TO PROVIDE
13 PROSPECTIVE BUYERS WITH INFORMATION ABOUT MATERIAL DEFECTS IN
14 THE RESIDENTIAL REAL PROPERTY. THIS REPORT DOES NOT LIMIT
15 THE PARTIES RIGHT TO CONTRACT FOR THE SALE OF RESIDENTIAL
16 REAL PROPERTY IN "AS IS" CONDITION. UNDER COMMON LAW SELLERS
17 WHO DISCLOSE MATERIAL DEFECTS MAY BE UNDER A CONTINUING
18 OBLIGATION TO ADVISE THE PROSPECTIVE BUYERS ABOUT THE
19 CONDITION OF THE RESIDENTIAL REAL PROPERTY EVEN AFTER THE
20 REPORT IS DELIVERED TO THE PROSPECTIVE BUYER. COMPLETION OF
21 THIS REPORT BY SELLER CREATES LEGAL OBLIGATIONS ON SELLER
22 THEREFORE SELLER MAY WISH TO CONSULT AN ATTORNEY PRIOR TO
23 COMPLETION OF THIS REPORT.
24 Property Address: ...........................................
25 City, State & Zip Code: .....................................
26 Seller's Name: ..............................................
27 This Report is a disclosure of certain conditions of the
28 residential real property listed above in compliance with the
29 Residential Real Property Disclosure Act. This information
30 is provided as of ...(month) ...(day) ...(year), and does not
31 reflect any changes made or occurring after that date or
32 information that becomes known to the seller after that date.
33 The disclosures herein shall not be deemed warranties of any
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1 kind by the seller or any person representing any party in
2 this transaction.
3 In this form, "am aware" means to have actual notice or
4 actual knowledge without any specific investigation or
5 inquiry. In this form a "material defect" means a condition
6 that would have a substantial adverse effect on the value of
7 the residential real property or that would significantly
8 impair the health or safety of future occupants of the
9 residential real property unless the seller reasonably
10 believes that the condition has been corrected.
11 The seller discloses the following information with the
12 knowledge that even though the statements herein are not
13 deemed to be warranties, prospective buyers may choose to
14 rely on this information in deciding whether or not and on
15 what terms to purchase the residential real property.
16 The seller represents that to the best of his or her
17 actual knowledge, the following statements have been
18 accurately noted as "yes", (correct), "no" (incorrect) or
19 "not applicable" to the property being sold. If the seller
20 indicates that the response to any statement, except number
21 1, is yes or not applicable, the seller shall provide an
22 explanation, in the additional information area of this form.
23 YES NO N/A
24 1. ..... ..... ..... Seller has occupied the property
25 within the last 12 months. (No
26 explanation is needed.)
27 2. ..... ..... ..... I am aware of flooding or recurring
28 leakage problems in the crawl space
29 or basement.
30 3. ..... ..... ..... I am aware that the property is
31 located in a flood plain or that I
32 currently have flood hazard
33 insurance on the property.
34 4. ..... ..... ..... I am aware of material defects in
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1 the basement or foundation
2 (including cracks and bulges).
3 5. ..... ..... ..... I am aware of leaks or material
4 defects in the roof, ceilings, or
5 chimney.
6 6. ..... ..... ..... I am aware of material defects in
7 the walls or floors.
8 7. ..... ..... ..... I am aware of material defects in
9 the electrical system.
10 8. ..... ..... ..... I am aware of material defects in
11 the plumbing system (includes such
12 things as water heater, sump pump,
13 water treatment system, sprinkler
14 system, and swimming pool).
15 9. ..... ..... ..... I am aware of material defects in
16 the well or well equipment.
17 10. ..... ..... ..... I am aware of unsafe conditions in
18 the drinking water.
19 11. ..... ..... ..... I am aware of material defects in
20 the heating, air conditioning, or
21 ventilating systems.
22 12. ..... ..... ..... I am aware of material defects in
23 the fireplace or woodburning stove.
24 13. ..... ..... ..... I am aware of material defects in
25 the septic, sanitary sewer, or other
26 disposal system.
27 14. ..... ..... ..... I am aware of unsafe concentrations
28 of radon on the premises.
29 15. ..... ..... ..... I am aware of unsafe concentrations
30 of or unsafe conditions relating to
31 asbestos on the premises.
32 16. ..... ..... ..... I am aware of unsafe concentrations
33 of or unsafe conditions relating to
34 lead paint, lead water pipes, lead
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1 plumbing pipes or lead in the soil
2 on the premises.
3 17. ..... ..... ..... I am aware of mine subsidence,
4 underground pits, settlement,
5 sliding, upheaval, or other earth
6 stability defects on the premises.
7 18. ..... ..... ..... I am aware of current infestations
8 of termites or other wood boring
9 insects.
10 19. ..... ..... ..... I am aware of a structural defect
11 caused by previous infestations of
12 termites or other wood boring
13 insects.
14 20. ..... ..... ..... I am aware of underground fuel
15 storage tanks on the property.
16 21. ..... ..... ..... I am aware of boundary or lot line
17 disputes.
18 22. ..... ..... ..... I have received notice of violation
19 of local, state or federal laws or
20 regulations relating to this
21 property, which violation has not
22 been corrected.
23 Note: These disclosures are not intended to cover the
24 common elements of a condominium, but only the actual
25 residential real property including limited common elements
26 allocated to the exclusive use thereof that form an integral
27 part of the condominium unit.
28 Note: These disclosures are intended to reflect the
29 current condition of the premises and do not include previous
30 problems, if any, that have been corrected.
31 If any of the above are marked "not applicable" or "yes",
32 please explain here or use additional pages, if necessary:
33 .............................................................
34 .............................................................
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1 .............................................................
2 Check here if additional pages used: .....
3 Seller certifies that seller has prepared this statement
4 and certifies that the information provided is based on the
5 actual notice or actual knowledge of the seller without any
6 specific investigation or inquiry on the part of the seller.
7 The seller hereby authorizes any person representing any
8 principal in this transaction to provide a copy of this
9 report, and to disclose any information in the report, to any
10 person in connection with any actual or anticipated sale of
11 the property.
12 Seller: ............................... Date: ...............
13 Seller: ............................... Date: ...............
14 PROSPECTIVE BUYER IS AWARE THAT THE PARTIES MAY CHOOSE TO
15 NEGOTIATE AN AGREEMENT FOR THE SALE OF THE PROPERTY SUBJECT
16 TO ANY OR ALL MATERIAL DEFECTS DISCLOSED IN THIS REPORT ("AS
17 IS"). THIS DISCLOSURE IS NOT A SUBSTITUTE FOR ANY
18 INSPECTIONS OR WARRANTIES THAT THE PROSPECTIVE BUYER OR
19 SELLER MAY WISH TO OBTAIN OR NEGOTIATE. THE FACT THAT THE
20 SELLER IS NOT AWARE OF A PARTICULAR CONDITION OR PROBLEM IS
21 NO GUARANTEE THAT IT DOES NOT EXIST. PROSPECTIVE BUYER IS
22 AWARE THAT HE MAY REQUEST AN INSPECTION OF THE PREMISES
23 PERFORMED BY A QUALIFIED PROFESSIONAL.
24 Prospective Buyer: .................. Date: ...... Time: ....
25 Prospective Buyer: .................. Date: ...... Time: ....
26 (Source: P.A. 88-111.)
27 (765 ILCS 77/40)
28 Sec. 40. Material defect. If a material defect is
29 disclosed in the Residential Real Property Disclosure Report,
30 delivered to a prospective buyer after acceptance by the
31 prospective buyer of an offer or counter-offer made by a
32 seller or after the execution of an offer made by a
33 prospective buyer that is accepted by the seller for the
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1 conveyance of the residential real property, then the
2 prospective buyer may, within 3 business days after receipt
3 of that report by the prospective buyer, terminate the
4 contract or other agreement without any liability or recourse
5 except for the return to prospective buyer of all earnest
6 money deposits or down payments paid by prospective buyer in
7 the transaction. If a material defect is disclosed in a
8 supplement to this disclosure document, the prospective buyer
9 shall not have a right to terminate unless the material
10 defect results from an error, inaccuracy, or omission of
11 which the seller had actual knowledge at the time the prior
12 disclosure document was completed and signed by the seller.
13 The right to terminate the contract, however, shall no longer
14 exist after the conveyance of the residential real property.
15 For purposes of this Act the termination shall be deemed to
16 be made when written notice of termination is personally
17 delivered to at least one of the sellers identified in the
18 contract or other agreement or when deposited, certified or
19 registered mail, with the United States Postal Service,
20 addressed to one of the sellers at the address indicated in
21 the contract or agreement, or, if there is not an address
22 contained therein, then at the address indicated for the
23 residential real property on the report.
24 A prospective buyer shall have no right to terminate the
25 contract or other agreement under this Act if the report is
26 delivered before the prospective buyer enters into an
27 agreement for the conveyance, lease, or other transfer of the
28 residential real property.
29 (Source: P.A. 88-111.)
30 (765 ILCS 77/55)
31 Sec. 55. Violations and damages. If the seller fails or
32 refuses to provide the disclosure document prior to the
33 conveyance of the residential real property, the buyer shall
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1 have the right to terminate the contract. No transfer subject
2 to this Act shall be invalidated solely because of the
3 failure of any person to comply with any provision of this
4 Act. However, A person who knowingly violates or fails to
5 perform any duty prescribed by any provision of this Act or
6 who discloses any information on the Residential Real
7 Property Disclosure Report that he knows to be false shall be
8 liable in the amount of actual damages and court costs, and
9 the court may award reasonable attorney fees incurred by the
10 prevailing party.
11 (Source: P.A. 88-111.)