Illinois General Assembly - Full Text of HB4322
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Full Text of HB4322  102nd General Assembly

HB4322eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB4322 EngrossedLRB102 22898 LNS 32051 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Residential Real Property Disclosure Act is
5amended by changing Sections 5, 15, 20, 30, 35, 40, 45, 50, 55,
6and 65 as follows:
 
7    (765 ILCS 77/5)
8    Sec. 5. Definitions. As used in this Act, unless the
9context otherwise requires, the following terms have the
10meaning given in this Section: .
11    "Residential real property" means real property improved
12with not less than one nor more than 4 residential dwelling
13units; units in residential cooperatives; or, condominium
14units, including the limited common elements allocated to the
15exclusive use thereof that form an integral part of the
16condominium unit. The term includes a manufactured home as
17defined in subdivision (53) of Section 9-102 of the Uniform
18Commercial Code that is real property as defined in the
19Conveyance and Encumbrance of Manufactured Homes as Real
20Property and Severance Act.
21    "Seller" means every person or entity who:
22        (1) is a beneficiary of an Illinois land trust; or
23        (2) has an interest, legal or equitable, in

 

 

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1    residential property as:
2            (i) an owner; ,
3            (ii) a beneficiary of a trust; ,
4            (iii) a beneficiary pursuant to testate
5        disposition, intestate succession, or a transfer on
6        death instrument; or
7            (iv) a contract purchaser or lessee of a ground
8        lease, who has an interest (legal or equitable) in
9        residential real property. However, "seller" shall not
10        include any person who has both (i) never occupied the
11        residential real property and (ii) never had the
12        management responsibility for the residential real
13        property nor delegated such responsibility for the
14        residential real property to another person or entity.
15    "Seller" does not include a party to a transfer that is
16exempt under Section 15.
17    "Prospective buyer" means any person or entity negotiating
18or offering to become an owner or lessee of a ground lease of
19residential real property by means of a transfer for value to
20which this Act applies.
21    "Contract" means a written agreement by the seller and
22prospective buyer that would, subject to the satisfaction of
23any negotiated contingencies, require the prospective buyer to
24accept a transfer of the residential real property.
25(Source: P.A. 98-749, eff. 7-16-14; 99-78, eff. 7-20-15.)
 

 

 

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1    (765 ILCS 77/15)
2    Sec. 15. Seller exemptions. The provisions of this Act do
3not apply to the following: A seller in any of the following
4transfers is exempt from this Act, regardless of whether a
5disclosure report is delivered:
6    (1) Transfers pursuant to court order, including, but not
7limited to, transfers ordered by a probate court in
8administration of an estate, transfers between spouses
9resulting from a judgment of dissolution of marriage or legal
10separation, transfers pursuant to an order of possession,
11transfers by a trustee in bankruptcy, transfers by eminent
12domain, and transfers resulting from a decree for specific
13performance.
14    (2) Transfers from a mortgagor to a mortgagee by deed in
15lieu of foreclosure or consent judgment, transfer by judicial
16deed issued pursuant to a foreclosure sale to the successful
17bidder or the assignee of a certificate of sale, transfer by a
18collateral assignment of a beneficial interest of a land
19trust, or a transfer by a mortgagee or a successor in interest
20to the mortgagee's secured position or a beneficiary under a
21deed in trust who has acquired the real property by deed in
22lieu of foreclosure, consent judgment or judicial deed issued
23pursuant to a foreclosure sale.
24    (3) Transfers by a fiduciary in the course of the
25administration of a decedent's estate, guardianship,
26conservatorship, or trust. As used in this paragraph, "trust"

 

 

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1includes an Illinois land trust.
2    (4) Transfers from one co-owner to one or more other
3co-owners.
4    (5) Transfers from a decedent pursuant to testate
5disposition, or intestate succession, or a transfer on death
6instrument.
7    (6) Transfers made to a spouse, or to a person or persons
8in the lineal line of consanguinity of one or more of the
9sellers.
10    (7) Transfers from an entity that has taken title to
11residential real property from a seller for the purpose of
12assisting in the relocation of the seller, so long as the
13entity makes available to all prospective buyers a copy of the
14disclosure report form furnished to the entity by the seller.
15    (8) Transfers to or from any governmental entity.
16    (9) Transfers of newly constructed residential real
17property that has never not been occupied. This does not
18include rehabilitation of existing residential real property.
19(Source: P.A. 88-111.)
 
20    (765 ILCS 77/20)
21    Sec. 20. Disclosure report requirements. A seller of
22residential real property shall complete all applicable items
23in the disclosure report document described in Section 35 of
24this Act. The seller shall deliver to the prospective buyer
25the written disclosure report statement required by this Act

 

 

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1before the signing of a contract written agreement by the
2seller and prospective buyer that would, subject to the
3satisfaction of any negotiated contingencies, require the
4prospective buyer to accept a transfer of the residential real
5property.
6(Source: P.A. 88-111.)
 
7    (765 ILCS 77/30)
8    Sec. 30. Disclosure report supplement. If, prior to
9closing, any seller becomes aware has actual knowledge of an
10error, inaccuracy, or omission in any prior disclosure report
11or supplement document after delivery of that disclosure
12report or supplement document to a prospective buyer, that
13seller shall supplement the prior disclosure report or
14supplement document with a written supplemental disclosure,
15delivered by any method set forth in Section 50.
16(Source: P.A. 90-383, eff. 1-1-98; 91-357, eff. 7-29-99.)
 
17    (765 ILCS 77/35)
18    Sec. 35. Disclosure report form. The disclosures required
19of a seller by this Act shall be made in the following form:
20
RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT
21    NOTICE: THE PURPOSE OF THIS REPORT IS TO PROVIDE
22PROSPECTIVE BUYERS WITH INFORMATION ABOUT MATERIAL DEFECTS IN
23THE RESIDENTIAL REAL PROPERTY BEFORE THE SIGNING OF A
24CONTRACT. THIS REPORT DOES NOT LIMIT THE PARTIES' RIGHT TO

 

 

HB4322 Engrossed- 6 -LRB102 22898 LNS 32051 b

1CONTRACT FOR THE SALE OF RESIDENTIAL REAL PROPERTY IN "AS IS"
2CONDITION. UNDER COMMON LAW, SELLERS WHO DISCLOSE MATERIAL
3DEFECTS MAY BE UNDER A CONTINUING OBLIGATION TO ADVISE THE
4PROSPECTIVE BUYERS ABOUT THE CONDITION OF THE RESIDENTIAL REAL
5PROPERTY EVEN AFTER THE REPORT IS DELIVERED TO THE PROSPECTIVE
6BUYER. COMPLETION OF THIS REPORT BY THE SELLER CREATES LEGAL
7OBLIGATIONS ON THE SELLER; THEREFORE THE SELLER MAY WISH TO
8CONSULT AN ATTORNEY PRIOR TO COMPLETION OF THIS REPORT.
9Property Address: ...........................................
10City, State & Zip Code: .....................................
11Seller's Name: ..............................................
12    This Report is a disclosure of certain conditions of the
13residential real property listed above in compliance with the
14Residential Real Property Disclosure Act. This information is
15provided as of ...(month) ...(day) ...(year), and does not
16reflect any changes made or occurring after that date or
17information that becomes known to the seller after that date.
18The disclosures herein shall not be deemed warranties of any
19kind by the seller or any person representing any party in this
20transaction.
21    In this form, "am aware" means to have actual notice or
22actual knowledge without any specific investigation or
23inquiry. In this form, "material defect" means a condition
24that would have a substantial adverse effect on the value of
25the residential real property or that would significantly
26impair the health or safety of future occupants of the

 

 

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1residential real property unless the seller reasonably
2believes that the condition has been corrected.
3    The seller discloses the following information with the
4knowledge that even though the statements herein are not
5deemed to be warranties, prospective buyers may choose to rely
6on this information in deciding whether or not and on what
7terms to purchase the residential real property.
8    The seller represents that to the best of his or her actual
9knowledge, the following statements have been accurately noted
10as "yes" (correct), "no" (incorrect), or "not applicable" to
11the property being sold. If the seller indicates that the
12response to any statement, except number 1, is yes or not
13applicable, the seller shall provide an explanation, in the
14additional information area of this form.
15YESNON/A
161................Seller has occupied the property
17 within the last 12 months.
18
19 (If "no," please identify capacity or explain relationship to property.) (No explanation is needed.)
202. ..... ..... ..... I currently have flood hazard
21 insurance on the property.
223 2................I am aware of flooding or recurring
23 leakage problems in the crawl
24 space or basement.
254 3................I am aware that the property is

 

 

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1 located in a floodplain flood plain or
2 that I currently have flood hazard
3 insurance on the property.
45 4................I am aware of material defects in
5 the basement or foundation
6 (including cracks and bulges).
76 5................I am aware of leaks or material
8 defects in the roof, ceilings, or
9 chimney.
107 6................I am aware of material defects in
11 the walls, windows, doors, or floors.
128 7................I am aware of material defects in
13 the electrical system.
149 8................I am aware of material defects in
15 the plumbing system (includes
16 such things as water heater, sump
17 pump, water treatment system,
18 sprinkler system, and swimming
19 pool).
2010 9................I am aware of material defects in
21 the well or well equipment.
2211 10................I am aware of unsafe conditions in
23 the drinking water.
2412 11................I am aware of material defects in
25 the heating, air conditioning, or
26 ventilating systems.

 

 

HB4322 Engrossed- 9 -LRB102 22898 LNS 32051 b

113 12................I am aware of material defects in
2 the fireplace or woodburning
3 stove.
414 13................I am aware of material defects in
5 the septic, sanitary sewer, or
6 other disposal system.
715 14................I am aware of unsafe concentrations
8 of radon on the premises.
916 15................I am aware of unsafe concentrations
10 of or unsafe conditions relating
11 to asbestos on the premises.
1217 16................I am aware of unsafe concentrations
13 of or unsafe conditions relating
14 to lead paint, lead water pipes,
15 lead plumbing pipes or lead in
16 the soil on the premises.
1718 17................I am aware of mine subsidence,
18 underground pits, settlement,
19 sliding, upheaval, or other earth
20 stability defects on the
21 premises.
2219 18................I am aware of current infestations
23 of termites or other wood boring
24 insects.
2520 19................I am aware of a structural defect
26 caused by previous infestations

 

 

HB4322 Engrossed- 10 -LRB102 22898 LNS 32051 b

1 of termites or other wood boring
2 insects.
321 20................I am aware of underground fuel
4 storage tanks on the property.
522 21................I am aware of boundary or lot line
6 disputes.
723 22................I have received notice of violation
8 of local, state or federal laws
9 or regulations relating to this
10 property, which violation has not
11 been corrected.
1224 23................I am aware that this property has
13 been used for the manufacture
14 of methamphetamine as
15 defined in Section 10 of
16 the Methamphetamine Control
17 and Community Protection Act.
18    Note: These disclosures are not intended to cover the
19common elements of a condominium, but only the actual
20residential real property including limited common elements
21allocated to the exclusive use thereof that form an integral
22part of the condominium unit.
23    Note: These disclosures are intended to reflect the
24current condition of the premises and do not include previous
25problems, if any, that the seller reasonably believes have
26been corrected.

 

 

HB4322 Engrossed- 11 -LRB102 22898 LNS 32051 b

1    If any of the above are marked "not applicable" or "yes",
2please explain here or use additional pages, if necessary:
3.............................................................
4.............................................................
5.............................................................
6    Check here if additional pages used: .....
7    Seller certifies that seller has prepared this report
8statement and certifies that the information provided is based
9on the actual notice or actual knowledge of the seller without
10any specific investigation or inquiry on the part of the
11seller. The seller hereby authorizes any person representing
12any principal in this transaction to provide a copy of this
13report, and to disclose any information in the report, to any
14person in connection with any actual or anticipated sale of
15the property.
16    (This paragraph shall be printed in boldface type.) THE
17SELLER ACKNOWLEDGES THAT THE SELLER IS REQUIRED TO PROVIDE
18THIS DISCLOSURE REPORT TO THE PROSPECTIVE BUYER BEFORE THE
19SIGNING OF THE CONTRACT AND HAS A CONTINUING OBLIGATION,
20PURSUANT TO SECTION 30 OF THE RESIDENTIAL REAL PROPERTY
21DISCLOSURE ACT, TO SUPPLEMENT THIS DISCLOSURE PRIOR TO
22CLOSING.
23Seller: ............................... Date: ...............
24Seller: ............................... Date: ...............
25    THE PROSPECTIVE BUYER IS AWARE THAT THE PARTIES MAY CHOOSE
26TO NEGOTIATE AN AGREEMENT FOR THE SALE OF THE PROPERTY SUBJECT

 

 

HB4322 Engrossed- 12 -LRB102 22898 LNS 32051 b

1TO ANY OR ALL MATERIAL DEFECTS DISCLOSED IN THIS REPORT ("AS
2IS"). THIS DISCLOSURE IS NOT A SUBSTITUTE FOR ANY INSPECTIONS
3OR WARRANTIES THAT THE PROSPECTIVE BUYER OR SELLER MAY WISH TO
4OBTAIN OR NEGOTIATE. (The remainder of this paragraph shall be
5printed in boldface type.) THE FACT THAT THE SELLER IS NOT
6AWARE OF A PARTICULAR CONDITION OR PROBLEM IS NO GUARANTEE
7THAT IT DOES NOT EXIST. THE PROSPECTIVE BUYER IS AWARE THAT THE
8PROSPECTIVE BUYER HE MAY REQUEST AN INSPECTION OF THE PREMISES
9PERFORMED BY A QUALIFIED PROFESSIONAL.
10Prospective Buyer: .................. Date: ...... Time: ....
11Prospective Buyer: .................. Date: ...... Time: ....
12(Source: P.A. 98-754, eff. 1-1-15.)
 
13    (765 ILCS 77/40)
14    Sec. 40. Material defect.
15    (a) If a seller discloses a material defect in the
16Residential Real Property Disclosure Report, including a
17response to any statement that is answered "yes" except
18numbers 1 and 2, and, in violation of Section 20, it is
19delivered to the prospective buyer after all parties have
20signed a contract, the prospective buyer, within 5 business
21days after receipt of that report, may terminate the contract
22or other agreement with the return of all earnest money
23deposits or down payments paid by the prospective buyer in the
24transaction without any liability to or recourse by the
25seller. If a material defect is disclosed in the Residential

 

 

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1Real Property Disclosure Report, after acceptance by the
2prospective buyer of an offer or counter-offer made by a
3seller or after the execution of an offer made by a prospective
4buyer that is accepted by the seller for the conveyance of the
5residential real property, then the prospective buyer may,
6within 3 business days after receipt of that report by the
7prospective buyer, terminate the contract or other agreement
8without any liability or recourse except for the return to
9prospective buyer of all earnest money deposits or down
10payments paid by prospective buyer in the transaction.
11    (b) If a seller discloses a material defect is disclosed
12in a supplement to this disclosure report document, the
13prospective buyer shall not have a right to terminate unless:
14(i) the material defect results from an error, inaccuracy, or
15omission of which the seller had actual knowledge at the time
16the prior disclosure document was completed and signed by the
17seller; (ii) the material defect is not repairable prior to
18closing; or (iii) the material defect is repairable prior to
19closing, but within 5 business days after the delivery of the
20supplemental disclosure, the seller declines, or otherwise
21fails to agree in writing, to repair the material defect.
22    (c) The right to terminate the contract, however, shall no
23longer exist after the conveyance of the residential real
24property. For purposes of this Act the termination shall be
25deemed to be made when written notice of termination is
26personally delivered to at least one of the sellers by any

 

 

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1method set forth in Section 50, at the contact information
2provided by any seller or indicated in the contract or other
3agreement. Nothing in subsection (a) or (b) shall limit the
4remedies available under the contract or Section 55 identified
5in the contract or other agreement or when deposited,
6certified or registered mail, with the United States Postal
7Service, addressed to one of the sellers at the address
8indicated in the contract or agreement, or, if there is not an
9address contained therein, then at the address indicated for
10the residential real property on the report.
11(Source: P.A. 90-383, eff. 1-1-98.)
 
12    (765 ILCS 77/45)
13    Sec. 45. Other law. This Act is not intended to limit
14remedies or modify any obligation to disclose created by any
15other statute or that may exist in common law in order to avoid
16fraud, misrepresentation, or deceit in the transaction.
17(Source: P.A. 88-111.)
 
18    (765 ILCS 77/50)
19    Sec. 50. Delivery of disclosure report. Delivery of the
20Residential Real Property Disclosure Report provided by this
21Act shall be by:
22        (1) personal delivery or facsimile, email, or other
23    electronic delivery to the prospective buyer at the
24    contact information provided by the prospective buyer or

 

 

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1    indicated in the contract or other agreement;
2        (2) depositing the report with the United States
3    Postal Service, postage prepaid, first class mail,
4    addressed to the prospective buyer at the address provided
5    by the prospective buyer or indicated on the contract or
6    other agreement; or
7        (3) depositing the report with an alternative delivery
8    service such as Federal Express or , UPS, or Airborne,
9    delivery charges prepaid, addressed to the prospective
10    buyer at the address provided by the prospective buyer or
11    indicated on the contract or other agreement.
12    For purposes of this Act, delivery to one prospective
13buyer is deemed delivery to all prospective buyers. Delivery
14to an authorized individual acting on behalf of a prospective
15buyer constitutes delivery to all prospective buyers. Delivery
16of the report is effective upon receipt by the prospective
17buyer. Receipt may be acknowledged on the report, acknowledged
18in an agreement for the conveyance of the residential real
19property, or shown in any other verifiable manner.
20(Source: P.A. 91-357, eff. 7-29-99.)
 
21    (765 ILCS 77/55)
22    Sec. 55. Violations and damages. If the seller fails or
23refuses to provide the disclosure report document prior to the
24conveyance of the residential real property, the prospective
25buyer shall have the right to terminate the contract. A seller

 

 

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1person who knowingly violates or fails to perform any duty
2prescribed by any provision of this Act or who discloses any
3information on the Residential Real Property Disclosure Report
4that the seller he knows to be false shall be liable in the
5amount of actual damages and court costs, and the court may
6award reasonable attorney's attorney fees incurred by the
7prevailing party.
8(Source: P.A. 90-383, eff. 1-1-98.)
 
9    (765 ILCS 77/65)
10    Sec. 65. A copy of Sections 5 through 65 of Article 2 of
11this Act, excluding Section 35, must be printed on or as a part
12of the Residential Real Property Disclosure Report form.
13(Source: P.A. 88-111.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.

 

 

HB4322 Engrossed- 17 -LRB102 22898 LNS 32051 b

1 INDEX
2 Statutes amended in order of appearance
3    765 ILCS 77/5
4    765 ILCS 77/15
5    765 ILCS 77/20
6    765 ILCS 77/30
7    765 ILCS 77/35
8    765 ILCS 77/40
9    765 ILCS 77/45
10    765 ILCS 77/50
11    765 ILCS 77/55