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Public Act 102-0765


 

Public Act 0765 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0765
 
HB4322 EnrolledLRB102 22898 LNS 32051 b

    AN ACT concerning civil law.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Residential Real Property Disclosure Act is
amended by changing Sections 5, 15, 20, 30, 35, 40, 45, 50, 55,
and 65 as follows:
 
    (765 ILCS 77/5)
    Sec. 5. Definitions. As used in this Act, unless the
context otherwise requires, the following terms have the
meaning given in this Section: .
    "Residential real property" means real property improved
with not less than one nor more than 4 residential dwelling
units; units in residential cooperatives; or, condominium
units, including the limited common elements allocated to the
exclusive use thereof that form an integral part of the
condominium unit. The term includes a manufactured home as
defined in subdivision (53) of Section 9-102 of the Uniform
Commercial Code that is real property as defined in the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act.
    "Seller" means every person or entity who:
        (1) is a beneficiary of an Illinois land trust; or
        (2) has an interest, legal or equitable, in
    residential property as:
            (i) an owner; ,
            (ii) a beneficiary of a trust; ,
            (iii) a beneficiary pursuant to testate
        disposition, intestate succession, or a transfer on
        death instrument; or
            (iv) a contract purchaser or lessee of a ground
        lease, who has an interest (legal or equitable) in
        residential real property. However, "seller" shall not
        include any person who has both (i) never occupied the
        residential real property and (ii) never had the
        management responsibility for the residential real
        property nor delegated such responsibility for the
        residential real property to another person or entity.
    "Seller" does not include a party to a transfer that is
exempt under Section 15.
    "Prospective buyer" means any person or entity negotiating
or offering to become an owner or lessee of a ground lease of
residential real property by means of a transfer for value to
which this Act applies.
    "Contract" means a written agreement by the seller and
prospective buyer that would, subject to the satisfaction of
any negotiated contingencies, require the prospective buyer to
accept a transfer of the residential real property.
(Source: P.A. 98-749, eff. 7-16-14; 99-78, eff. 7-20-15.)
 
    (765 ILCS 77/15)
    Sec. 15. Seller exemptions. The provisions of this Act do
not apply to the following: A seller in any of the following
transfers is exempt from this Act, regardless of whether a
disclosure report is delivered:
    (1) Transfers pursuant to court order, including, but not
limited to, transfers ordered by a probate court in
administration of an estate, transfers between spouses
resulting from a judgment of dissolution of marriage or legal
separation, transfers pursuant to an order of possession,
transfers by a trustee in bankruptcy, transfers by eminent
domain, and transfers resulting from a decree for specific
performance.
    (2) Transfers from a mortgagor to a mortgagee by deed in
lieu of foreclosure or consent judgment, transfer by judicial
deed issued pursuant to a foreclosure sale to the successful
bidder or the assignee of a certificate of sale, transfer by a
collateral assignment of a beneficial interest of a land
trust, or a transfer by a mortgagee or a successor in interest
to the mortgagee's secured position or a beneficiary under a
deed in trust who has acquired the real property by deed in
lieu of foreclosure, consent judgment or judicial deed issued
pursuant to a foreclosure sale.
    (3) Transfers by a fiduciary in the course of the
administration of a decedent's estate, guardianship,
conservatorship, or trust. As used in this paragraph, "trust"
includes an Illinois land trust.
    (4) Transfers from one co-owner to one or more other
co-owners.
    (5) Transfers from a decedent pursuant to testate
disposition, or intestate succession, or a transfer on death
instrument.
    (6) Transfers made to a spouse, or to a person or persons
in the lineal line of consanguinity of one or more of the
sellers.
    (7) Transfers from an entity that has taken title to
residential real property from a seller for the purpose of
assisting in the relocation of the seller, so long as the
entity makes available to all prospective buyers a copy of the
disclosure report form furnished to the entity by the seller.
    (8) Transfers to or from any governmental entity.
    (9) Transfers of newly constructed residential real
property that has never not been occupied. This does not
include rehabilitation of existing residential real property.
(Source: P.A. 88-111.)
 
    (765 ILCS 77/20)
    Sec. 20. Disclosure report requirements. A seller of
residential real property shall complete all applicable items
in the disclosure report document described in Section 35 of
this Act. The seller shall deliver to the prospective buyer
the written disclosure report statement required by this Act
before the signing of a contract written agreement by the
seller and prospective buyer that would, subject to the
satisfaction of any negotiated contingencies, require the
prospective buyer to accept a transfer of the residential real
property.
(Source: P.A. 88-111.)
 
    (765 ILCS 77/30)
    Sec. 30. Disclosure report supplement. If, prior to
closing, any seller becomes aware has actual knowledge of an
error, inaccuracy, or omission in any prior disclosure report
or supplement document after delivery of that disclosure
report or supplement document to a prospective buyer, that
seller shall supplement the prior disclosure report or
supplement document with a written supplemental disclosure,
delivered by any method set forth in Section 50.
(Source: P.A. 90-383, eff. 1-1-98; 91-357, eff. 7-29-99.)
 
    (765 ILCS 77/35)
    Sec. 35. Disclosure report form. The disclosures required
of a seller by this Act shall be made in the following form:
RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT
    NOTICE: THE PURPOSE OF THIS REPORT IS TO PROVIDE
PROSPECTIVE BUYERS WITH INFORMATION ABOUT MATERIAL DEFECTS IN
THE RESIDENTIAL REAL PROPERTY BEFORE THE SIGNING OF A
CONTRACT. THIS REPORT DOES NOT LIMIT THE PARTIES' RIGHT TO
CONTRACT FOR THE SALE OF RESIDENTIAL REAL PROPERTY IN "AS IS"
CONDITION. UNDER COMMON LAW, SELLERS WHO DISCLOSE MATERIAL
DEFECTS MAY BE UNDER A CONTINUING OBLIGATION TO ADVISE THE
PROSPECTIVE BUYERS ABOUT THE CONDITION OF THE RESIDENTIAL REAL
PROPERTY EVEN AFTER THE REPORT IS DELIVERED TO THE PROSPECTIVE
BUYER. COMPLETION OF THIS REPORT BY THE SELLER CREATES LEGAL
OBLIGATIONS ON THE SELLER; THEREFORE THE SELLER MAY WISH TO
CONSULT AN ATTORNEY PRIOR TO COMPLETION OF THIS REPORT.
Property Address: ...........................................
City, State & Zip Code: .....................................
Seller's Name: ..............................................
    This Report is a disclosure of certain conditions of the
residential real property listed above in compliance with the
Residential Real Property Disclosure Act. This information is
provided as of ...(month) ...(day) ...(year), and does not
reflect any changes made or occurring after that date or
information that becomes known to the seller after that date.
The disclosures herein shall not be deemed warranties of any
kind by the seller or any person representing any party in this
transaction.
    In this form, "am aware" means to have actual notice or
actual knowledge without any specific investigation or
inquiry. In this form, "material defect" means 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 that the condition has been corrected.
    The seller discloses the following information with the
knowledge that even though the statements herein are not
deemed to be warranties, prospective buyers may choose to rely
on this information in deciding whether or not and on what
terms to purchase the residential real property.
    The seller represents that to the best of his or her actual
knowledge, the following statements have been accurately noted
as "yes" (correct), "no" (incorrect), or "not applicable" to
the property being sold. If the seller indicates that the
response to any statement, except number 1, is yes or not
applicable, the seller shall provide an explanation, in the
additional information area of this form.
YESNON/A
1................Seller has occupied the property
within the last 12 months.
(If "no," please identify capacity or explain relationship to property.) (No explanation is needed.)
2. ..... ..... ..... I currently have flood hazard
insurance on the property.
3 2................I am aware of flooding or recurring
leakage problems in the crawl
space or basement.
4 3................I am aware that the property is
located in a floodplain flood plain or
that I currently have flood hazard
insurance on the property.
5 4................I am aware of material defects in
the basement or foundation
(including cracks and bulges).
6 5................I am aware of leaks or material
defects in the roof, ceilings, or
chimney.
7 6................I am aware of material defects in
the walls, windows, doors, or floors.
8 7................I am aware of material defects in
the electrical system.
9 8................I am aware of material defects in
the plumbing system (includes
such things as water heater, sump
pump, water treatment system,
sprinkler system, and swimming
pool).
10 9................I am aware of material defects in
the well or well equipment.
11 10................I am aware of unsafe conditions in
the drinking water.
12 11................I am aware of material defects in
the heating, air conditioning, or
ventilating systems.
13 12................I am aware of material defects in
the fireplace or woodburning
stove.
14 13................I am aware of material defects in
the septic, sanitary sewer, or
other disposal system.
15 14................I am aware of unsafe concentrations
of radon on the premises.
16 15................I am aware of unsafe concentrations
of or unsafe conditions relating
to asbestos on the premises.
17 16................I am aware of unsafe concentrations
of or unsafe conditions relating
to lead paint, lead water pipes,
lead plumbing pipes or lead in
the soil on the premises.
18 17................I am aware of mine subsidence,
underground pits, settlement,
sliding, upheaval, or other earth
stability defects on the
premises.
19 18................I am aware of current infestations
of termites or other wood boring
insects.
20 19................I am aware of a structural defect
caused by previous infestations
of termites or other wood boring
insects.
21 20................I am aware of underground fuel
storage tanks on the property.
22 21................I am aware of boundary or lot line
disputes.
23 22................I have received notice of violation
of local, state or federal laws
or regulations relating to this
property, which violation has not
been corrected.
24 23................I am aware that this property has
been used for the manufacture
of methamphetamine as
defined in Section 10 of
the Methamphetamine Control
and Community Protection Act.
    Note: These disclosures are not intended to cover the
common elements of a condominium, but only the actual
residential real property including limited common elements
allocated to the exclusive use thereof that form an integral
part of the condominium unit.
    Note: These disclosures are intended to reflect the
current condition of the premises and do not include previous
problems, if any, that the seller reasonably believes have
been corrected.
    If any of the above are marked "not applicable" or "yes",
please explain here or use additional pages, if necessary:
.............................................................
.............................................................
.............................................................
    Check here if additional pages used: .....
    Seller certifies that seller has prepared this report
statement and certifies that the information provided is based
on the actual notice or actual knowledge of the seller without
any specific investigation or inquiry on the part of the
seller. The seller hereby authorizes any person representing
any principal in this transaction to provide a copy of this
report, and to disclose any information in the report, to any
person in connection with any actual or anticipated sale of
the property.
    (This paragraph shall be printed in boldface type.) THE
SELLER ACKNOWLEDGES THAT THE SELLER IS REQUIRED TO PROVIDE
THIS DISCLOSURE REPORT TO THE PROSPECTIVE BUYER BEFORE THE
SIGNING OF THE CONTRACT AND HAS A CONTINUING OBLIGATION,
PURSUANT TO SECTION 30 OF THE RESIDENTIAL REAL PROPERTY
DISCLOSURE ACT, TO SUPPLEMENT THIS DISCLOSURE PRIOR TO
CLOSING.
Seller: ............................... Date: ...............
Seller: ............................... Date: ...............
    THE PROSPECTIVE BUYER IS AWARE THAT THE PARTIES MAY CHOOSE
TO NEGOTIATE AN AGREEMENT FOR THE SALE OF THE PROPERTY SUBJECT
TO ANY OR ALL MATERIAL DEFECTS DISCLOSED IN THIS REPORT ("AS
IS"). THIS DISCLOSURE IS NOT A SUBSTITUTE FOR ANY INSPECTIONS
OR WARRANTIES THAT THE PROSPECTIVE BUYER OR SELLER MAY WISH TO
OBTAIN OR NEGOTIATE. (The remainder of this paragraph shall be
printed in boldface type.) THE FACT THAT THE SELLER IS NOT
AWARE OF A PARTICULAR CONDITION OR PROBLEM IS NO GUARANTEE
THAT IT DOES NOT EXIST. THE PROSPECTIVE BUYER IS AWARE THAT THE
PROSPECTIVE BUYER HE MAY REQUEST AN INSPECTION OF THE PREMISES
PERFORMED BY A QUALIFIED PROFESSIONAL.
Prospective Buyer: .................. Date: ...... Time: ....
Prospective Buyer: .................. Date: ...... Time: ....
(Source: P.A. 98-754, eff. 1-1-15.)
 
    (765 ILCS 77/40)
    Sec. 40. Material defect.
    (a) If a seller discloses a material defect in the
Residential Real Property Disclosure Report, including a
response to any statement that is answered "yes" except
numbers 1 and 2, and, in violation of Section 20, it is
delivered to the prospective buyer after all parties have
signed a contract, the prospective buyer, within 5 business
days after receipt of that report, may terminate the contract
or other agreement with the return of all earnest money
deposits or down payments paid by the prospective buyer in the
transaction without any liability to or recourse by the
seller. If a material defect is disclosed in the Residential
Real Property Disclosure Report, after acceptance by the
prospective buyer of an offer or counter-offer made by a
seller or after the execution of an offer made by a prospective
buyer that is accepted by the seller for the conveyance of the
residential real property, then the prospective buyer may,
within 3 business days after receipt of that report by the
prospective buyer, terminate the contract or other agreement
without any liability or recourse except for the return to
prospective buyer of all earnest money deposits or down
payments paid by prospective buyer in the transaction.
    (b) If a seller discloses a material defect is disclosed
in a supplement to this disclosure report document, the
prospective buyer shall not have a right to terminate unless:
(i) the material defect results from an error, inaccuracy, or
omission of which the seller had actual knowledge at the time
the prior disclosure document was completed and signed by the
seller; (ii) the material defect is not repairable prior to
closing; or (iii) the material defect is repairable prior to
closing, but within 5 business days after the delivery of the
supplemental disclosure, the seller declines, or otherwise
fails to agree in writing, to repair the material defect.
    (c) The right to terminate the contract, however, shall no
longer exist after the conveyance of the residential real
property. For purposes of this Act the termination shall be
deemed to be made when written notice of termination is
personally delivered to at least one of the sellers by any
method set forth in Section 50, at the contact information
provided by any seller or indicated in the contract or other
agreement. Nothing in subsection (a) or (b) shall limit the
remedies available under the contract or Section 55 identified
in the contract or other agreement or when deposited,
certified or registered mail, with the United States Postal
Service, addressed to one of the sellers at the address
indicated in the contract or agreement, or, if there is not an
address contained therein, then at the address indicated for
the residential real property on the report.
(Source: P.A. 90-383, eff. 1-1-98.)
 
    (765 ILCS 77/45)
    Sec. 45. Other law. This Act is not intended to limit
remedies or modify any obligation to disclose created by any
other statute or that may exist in common law in order to avoid
fraud, misrepresentation, or deceit in the transaction.
(Source: P.A. 88-111.)
 
    (765 ILCS 77/50)
    Sec. 50. Delivery of disclosure report. Delivery of the
Residential Real Property Disclosure Report provided by this
Act shall be by:
        (1) personal delivery or facsimile, email, or other
    electronic delivery to the prospective buyer at the
    contact information provided by the prospective buyer or
    indicated in the contract or other agreement;
        (2) depositing the report with the United States
    Postal Service, postage prepaid, first class mail,
    addressed to the prospective buyer at the address provided
    by the prospective buyer or indicated on the contract or
    other agreement; or
        (3) depositing the report with an alternative delivery
    service such as Federal Express or , UPS, or Airborne,
    delivery charges prepaid, addressed to the prospective
    buyer at the address provided by the prospective buyer or
    indicated on the contract or other agreement.
    For purposes of this Act, delivery to one prospective
buyer is deemed delivery to all prospective buyers. Delivery
to an authorized individual acting on behalf of a prospective
buyer constitutes delivery to all prospective buyers. Delivery
of the report is effective upon receipt by the prospective
buyer. Receipt may be acknowledged on the report, acknowledged
in an agreement for the conveyance of the residential real
property, or shown in any other verifiable manner.
(Source: P.A. 91-357, eff. 7-29-99.)
 
    (765 ILCS 77/55)
    Sec. 55. Violations and damages. If the seller fails or
refuses to provide the disclosure report document prior to the
conveyance of the residential real property, the prospective
buyer shall have the right to terminate the contract. A seller
person who knowingly violates or fails to perform any duty
prescribed by any provision of this Act or who discloses any
information on the Residential Real Property Disclosure Report
that the seller he knows to be false shall be liable in the
amount of actual damages and court costs, and the court may
award reasonable attorney's attorney fees incurred by the
prevailing party.
(Source: P.A. 90-383, eff. 1-1-98.)
 
    (765 ILCS 77/65)
    Sec. 65. A copy of Sections 5 through 65 of Article 2 of
this Act, excluding Section 35, must be printed on or as a part
of the Residential Real Property Disclosure Report form.
(Source: P.A. 88-111.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance
    765 ILCS 77/5
    765 ILCS 77/15
    765 ILCS 77/20
    765 ILCS 77/30
    765 ILCS 77/35
    765 ILCS 77/40
    765 ILCS 77/45
    765 ILCS 77/50
    765 ILCS 77/55

Effective Date: 5/13/2022