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90_HB0358eng
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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HB0358 Engrossed 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 all owners, beneficiaries of a trust,
19 contract purchasers, or lessees of a ground lease, who have
20 an owner, beneficiary of a trust, contract purchaser or
21 lessee of a ground lease, who has an interest (legal or
22 equitable) in residential real property. However, "seller"
23 shall not include any person who has both (i) never occupied
24 the residential real property and (ii) never had the
25 management responsibility for the residential real property
26 nor delegated such responsibility for the residential real
27 property to another person or entity.
28 "Prospective buyer" means any person or entity
29 negotiating or offering to become an owner or lessee of
30 residential real property by means of a transfer for value to
31 which this Act applies.
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1 (Source: P.A. 88-111.)
2 (765 ILCS 77/25)
3 Sec. 25. Liability of seller.
4 (a) The seller is not liable for any error, inaccuracy,
5 or omission of any information delivered pursuant to this Act
6 if (i) the seller had no knowledge of the error, inaccuracy,
7 or omission, (ii) the error, inaccuracy, or omission was
8 based on a reasonable belief that a material defect or other
9 matter not disclosed had been corrected, or (iii) the error,
10 inaccuracy, or omission was based on information provided by
11 a public agency or by a licensed engineer, land surveyor,
12 structural pest control operator, or by a contractor about
13 matters within the scope of the contractor's occupation and
14 the seller had no knowledge of the error, inaccuracy, or
15 omission.
16 (b) The seller shall disclose material defects of which
17 the seller has actual knowledge.
18 (c) The seller is not obligated by this Act to make any
19 specific investigation or inquiry in an effort to complete
20 the disclosure statement.
21 (d) The seller is under no obligation to amend the
22 disclosure document after its delivery to a prospective buyer
23 unless the disclosure document contains errors, inaccuracies,
24 or omissions of which the seller had actual knowledge at the
25 time the disclosure document was completed and signed by the
26 seller. However, seller shall remain subject to the
27 provisions of Section 45 of this Act.
28 (Source: P.A. 88-111.)
29 (765 ILCS 77/30)
30 Sec. 30. Disclosure supplement. The seller shall
31 supplement the disclosure document with a written disclosure
32 after its delivery to a prospective buyer if any previous
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1 disclosure document contains errors, inaccuracies, or
2 omissions of which the seller has actual knowledge If
3 information disclosed in accordance with this Act is
4 subsequently rendered inaccurate as a result of any act,
5 occurrence, incident, or agreement subsequent to the delivery
6 of the required disclosure document, the inaccuracy
7 resulting therefrom from does not constitute a violation of
8 this Act.
9 (Source: P.A. 88-111.)
10 (765 ILCS 77/35)
11 Sec. 35. Disclosure report form. The disclosures
12 required of a seller by this Act, shall be made in the
13 following form:
14 RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT
15 NOTICE: THE PURPOSE OF THIS REPORT IS TO PROVIDE
16 PROSPECTIVE BUYERS WITH INFORMATION ABOUT MATERIAL DEFECTS IN
17 THE RESIDENTIAL REAL PROPERTY. THIS REPORT DOES NOT LIMIT
18 THE PARTIES RIGHT TO CONTRACT FOR THE SALE OF RESIDENTIAL
19 REAL PROPERTY IN "AS IS" CONDITION. UNDER COMMON LAW SELLERS
20 WHO DISCLOSE MATERIAL DEFECTS MAY BE UNDER A CONTINUING
21 OBLIGATION TO ADVISE THE PROSPECTIVE BUYERS ABOUT THE
22 CONDITION OF THE RESIDENTIAL REAL PROPERTY EVEN AFTER THE
23 REPORT IS DELIVERED TO THE PROSPECTIVE BUYER. COMPLETION OF
24 THIS REPORT BY SELLER CREATES LEGAL OBLIGATIONS ON SELLER
25 THEREFORE SELLER MAY WISH TO CONSULT AN ATTORNEY PRIOR TO
26 COMPLETION OF THIS REPORT.
27 Property Address: ...........................................
28 City, State & Zip Code: .....................................
29 Seller's Name: ..............................................
30 This Report is a disclosure of certain conditions of the
31 residential real property listed above in compliance with the
32 Residential Real Property Disclosure Act. This information
33 is provided as of ...(month) ...(day) ...(year), and does not
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1 reflect any changes made or occurring after that date or
2 information that becomes known to the seller after that date.
3 The disclosures herein shall not be deemed warranties of any
4 kind by the seller or any person representing any party in
5 this transaction.
6 In this form, "am aware" means to have actual notice or
7 actual knowledge without any specific investigation or
8 inquiry. In this form a "material defect" means a condition
9 that would have a substantial adverse effect on the value of
10 the residential real property or that would significantly
11 impair the health or safety of future occupants of the
12 residential real property unless the seller reasonably
13 believes that the condition has been corrected.
14 The seller discloses the following information with the
15 knowledge that even though the statements herein are not
16 deemed to be warranties, prospective buyers may choose to
17 rely on this information in deciding whether or not and on
18 what terms to purchase the residential real property.
19 The seller represents that to the best of his or her
20 actual knowledge, the following statements have been
21 accurately noted as "yes", (correct), "no" (incorrect) or
22 "not applicable" to the property being sold. If the seller
23 indicates that the response to any statement, except number
24 1, is yes or not applicable, the seller shall provide an
25 explanation, in the additional information area of this form.
26 YES NO N/A
27 1. ..... ..... ..... Seller has occupied the property
28 within the last 12 months. (No
29 explanation is needed.)
30 2. ..... ..... ..... I am aware of flooding or recurring
31 leakage problems in the crawl space
32 or basement.
33 3. ..... ..... ..... I am aware that the property is
34 located in a flood plain or that I
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1 currently have flood hazard
2 insurance on the property.
3 4. ..... ..... ..... I am aware of material defects in
4 the basement or foundation
5 (including cracks and bulges).
6 5. ..... ..... ..... I am aware of leaks or material
7 defects in the roof, ceilings, or
8 chimney.
9 6. ..... ..... ..... I am aware of material defects in
10 the walls or floors.
11 7. ..... ..... ..... I am aware of material defects in
12 the electrical system.
13 8. ..... ..... ..... I am aware of material defects in
14 the plumbing system (includes such
15 things as water heater, sump pump,
16 water treatment system, sprinkler
17 system, and swimming pool).
18 9. ..... ..... ..... I am aware of material defects in
19 the well or well equipment.
20 10. ..... ..... ..... I am aware of unsafe conditions in
21 the drinking water.
22 11. ..... ..... ..... I am aware of material defects in
23 the heating, air conditioning, or
24 ventilating systems.
25 12. ..... ..... ..... I am aware of material defects in
26 the fireplace or woodburning stove.
27 13. ..... ..... ..... I am aware of material defects in
28 the septic, sanitary sewer, or other
29 disposal system.
30 14. ..... ..... ..... I am aware of unsafe concentrations
31 of radon on the premises.
32 15. ..... ..... ..... I am aware of unsafe concentrations
33 of or unsafe conditions relating to
34 asbestos on the premises.
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1 16. ..... ..... ..... I am aware of unsafe concentrations
2 of or unsafe conditions relating to
3 lead paint, lead water pipes, lead
4 plumbing pipes or lead in the soil
5 on the premises.
6 17. ..... ..... ..... I am aware of mine subsidence,
7 underground pits, settlement,
8 sliding, upheaval, or other earth
9 stability defects on the premises.
10 18. ..... ..... ..... I am aware of current infestations
11 of termites or other wood boring
12 insects.
13 19. ..... ..... ..... I am aware of a structural defect
14 caused by previous infestations of
15 termites or other wood boring
16 insects.
17 20. ..... ..... ..... I am aware of underground fuel
18 storage tanks on the property.
19 21. ..... ..... ..... I am aware of boundary or lot line
20 disputes.
21 22. ..... ..... ..... I have received notice of violation
22 of local, state or federal laws or
23 regulations relating to this
24 property, which violation has not
25 been corrected.
26 Note: These disclosures are not intended to cover the
27 common elements of a condominium, but only the actual
28 residential real property including limited common elements
29 allocated to the exclusive use thereof that form an integral
30 part of the condominium unit.
31 Note: These disclosures are intended to reflect the
32 current condition of the premises and do not include previous
33 problems, if any, that the seller reasonably believes have
34 been corrected.
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1 If any of the above are marked "not applicable" or "yes",
2 please 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 statement
8 and certifies that the information provided is based on the
9 actual notice or actual knowledge of the seller without any
10 specific investigation or inquiry on the part of the seller.
11 The seller hereby authorizes any person representing any
12 principal in this transaction to provide a copy of this
13 report, and to disclose any information in the report, to any
14 person in connection with any actual or anticipated sale of
15 the property.
16 Seller: ............................... Date: ...............
17 Seller: ............................... Date: ...............
18 PROSPECTIVE BUYER IS AWARE THAT THE PARTIES MAY CHOOSE TO
19 NEGOTIATE AN AGREEMENT FOR THE SALE OF THE PROPERTY SUBJECT
20 TO ANY OR ALL MATERIAL DEFECTS DISCLOSED IN THIS REPORT ("AS
21 IS"). THIS DISCLOSURE IS NOT A SUBSTITUTE FOR ANY
22 INSPECTIONS OR WARRANTIES THAT THE PROSPECTIVE BUYER OR
23 SELLER MAY WISH TO OBTAIN OR NEGOTIATE. THE FACT THAT THE
24 SELLER IS NOT AWARE OF A PARTICULAR CONDITION OR PROBLEM IS
25 NO GUARANTEE THAT IT DOES NOT EXIST. PROSPECTIVE BUYER IS
26 AWARE THAT HE MAY REQUEST AN INSPECTION OF THE PREMISES
27 PERFORMED BY A QUALIFIED PROFESSIONAL.
28 Prospective Buyer: .................. Date: ...... Time: ....
29 Prospective Buyer: .................. Date: ...... Time: ....
30 (Source: P.A. 88-111.)
31 (765 ILCS 77/40)
32 Sec. 40. Material defect. If a material defect is
33 disclosed in the Residential Real Property Disclosure Report,
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1 delivered to a prospective buyer after acceptance by the
2 prospective buyer of an offer or counter-offer made by a
3 seller or after the execution of an offer made by a
4 prospective buyer that is accepted by the seller for the
5 conveyance of the residential real property, then the
6 prospective buyer may, within 3 business days after receipt
7 of that report by the prospective buyer, terminate the
8 contract or other agreement without any liability or recourse
9 except for the return to prospective buyer of all earnest
10 money deposits or down payments paid by prospective buyer in
11 the transaction. If a material defect is disclosed in a
12 supplement to this disclosure document, the prospective buyer
13 shall not have a right to terminate unless the material
14 defect results from an error, inaccuracy, or omission of
15 which the seller had actual knowledge at the time the prior
16 disclosure document was completed and signed by the seller.
17 The right to terminate the contract, however, shall no longer
18 exist after the conveyance of the residential real property.
19 For purposes of this Act the termination shall be deemed to
20 be made when written notice of termination is personally
21 delivered to at least one of the sellers identified in the
22 contract or other agreement or when deposited, certified or
23 registered mail, with the United States Postal Service,
24 addressed to one of the sellers at the address indicated in
25 the contract or agreement, or, if there is not an address
26 contained therein, then at the address indicated for the
27 residential real property on the report.
28 A prospective buyer shall have no right to terminate the
29 contract or other agreement under this Act if the report is
30 delivered before the prospective buyer enters into an
31 agreement for the conveyance, lease, or other transfer of the
32 residential real property.
33 (Source: P.A. 88-111.)
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1 (765 ILCS 77/55)
2 Sec. 55. Violations and damages. If the seller fails or
3 refuses to provide the disclosure document prior to the
4 conveyance of the residential real property, the buyer shall
5 have the right to terminate the contract. No transfer subject
6 to this Act shall be invalidated solely because of the
7 failure of any person to comply with any provision of this
8 Act. However, A person who knowingly violates or fails to
9 perform any duty prescribed by any provision of this Act or
10 who discloses any information on the Residential Real
11 Property Disclosure Report that he knows to be false shall be
12 liable in the amount of actual damages and court costs, and
13 the court may award reasonable attorney fees incurred by the
14 prevailing party.
15 (Source: P.A. 88-111.)