The Risks Of Property Disclosure Violations In Illinois Real Estate Transactions
Buying or selling a home is a financial transaction that requires full transparency in property disclosures. When a seller fails to disclose known defects or misrepresents the condition of a property, legal consequences can follow. A home buyer relies on accurate information to make an informed decision. Undisclosed issues can lead to expensive repairs, financial loss, and lawsuits. The Illinois Residential Real Property Disclosure Act (765 ILCS 77/1 et seq.) directs these disclosures. The act make sure that buyers have the necessary information to assess a property’s true condition. Violations of these laws can result in legal liability, damages, and even rescission of the sale.
Understanding Illinois Property Disclosure Laws
Under 765 ILCS 77/35, sellers must complete and provide a Residential Real Property Disclosure Report before a sale is finalized. This document requires sellers to disclose known material defects, including structural issues, plumbing and electrical problems, water damage, and environmental hazards. Failure to disclose known issues can lead to legal claims from the buyer, especially if the defect significantly impacts the property’s value or safety.
Sellers cannot intentionally misrepresent or conceal defects. If a buyer later discovers a hidden defect that the seller knew about, the buyer may file a lawsuit for fraud or misrepresentation under Illinois common law fraud principles. Illinois courts consider whether the seller had knowledge of the defect and whether the omission directly harmed the buyer.
Legal Consequences Of Property Disclosure Violations
1. Financial Damages
Property buyers who discover undisclosed defects may pursue compensation for repairs, reduced property value, and other financial losses. Fraudulent misrepresentation allows home buyers to recover damages.
2. Rescission Of The Sale
In cases of severe misrepresentation, a court may allow the buyer to rescind the sale, effectively canceling the transaction and requiring the seller to refund the purchase price. This remedy is typically pursued when defects are so severe that the property becomes uninhabitable or its value is significantly diminished.
3. Legal Fees And Court Costs
If a buyer successfully proves fraud or misrepresentation, the seller may be required to pay court costs and legal fees. This increases the financial burden on sellers who attempt to hide defects.
4. Liability For Real Estate Agents
Real estate agents involved in a transaction may also face legal consequences if they were aware of a material defect and failed to disclose it. Under Illinois law, agents have a duty to disclose known defects that could materially affect a buyer’s decision.
FAQs About Property Disclosure Violations In Illinois
What Happens If A Seller Fails To Disclose Defects In Illinois?
If a seller fails to disclose known defects, the buyer may pursue legal action under 765 ILCS 77/35. The buyer can seek financial damages, rescind the sale, or claim fraud if the omission was intentional.
Can A Buyer Sue After Closing For Undisclosed Defects?
Yes. If a buyer discovers defects after closing that the seller knew about but failed to disclose, they may sue for misrepresentation or fraud. Under Illinois law, buyers must show that the seller intentionally withheld information and that the defect caused financial harm.
What Types Of Defects Must Sellers Disclose?
Sellers must disclose known issues related to structural integrity, water damage, plumbing and electrical systems, foundation problems, pest infestations, and hazardous materials such as lead or asbestos. 765 ILCS 77/35 outlines these disclosure requirements.
Is A Home Inspection Required To Prove A Seller Failed To Disclose Defects?
While a home inspection can identify defects, it is not required to prove a seller’s failure to disclose. If a buyer can demonstrate that the seller had prior knowledge of a defect and intentionally omitted it from the disclosure, they may have grounds for legal action.
Can A Real Estate Agent Be Held Responsible For Failing To Disclose Property Defects?
Yes. If an agent knows about a material defect and fails to disclose it, they may be held liable for negligence or misrepresentation. Real estate professionals have a duty to provide truthful and complete information to buyers.
Contact Our Illinois Real Estate Attorney For Legal Guidance
At Dan Walker Law Office, I understand the serious implications of property disclosure violations and work to protect buyers who have been misled. If you purchased a home with undisclosed defects or are facing legal claims as a seller, I can help you understand your rights and legal options. Holding negligent sellers accountable is critical to ensuring fair real estate transactions.
If you need professional advice, consult with our Illinois real estate attorney at Dan Walker Law Office. Attorney Walker can provide effective legal counsel and advice. To schedule a consultation, please contact our firm at (630) 920-8800. My office is located in Hinsdale, Illinois, and I serve clients throughout the entire Chicagoland metro area. If you are dealing with a property disclosure dispute, do not wait—get the legal guidance you need today.
