What is the 'Sellers Disclosure'?

In Illinois, we have recently updated (August 11th, 2009) the Residential Real Property Disclosure Act to include homes that might be contaminated with methamphetamine.  

• Illinois is one of at least 45 states requiring mandatory disclosure of property condition.
• The form gives as much information as possible about the current condition of the property.
• The form consists of 23 questions about the condition of the property including (but not limited to): the structure, including the roof, foundation, walls and floors; flooding; furnace; electrical, plumbing and air conditioning systems; well and drinking water; and high levels of lead paint, radon and asbestos. 
• Delivery of the disclosure form is required in most sales transactions before signing a written contract.

Sellers Rights - Most sellers are responsible for completing the disclosure form and honestly disclosing only those matters they know about. Of course, if a seller has no actual knowledge about something, he could likely answer "no" (or not aware) about any of the items on the form, but if he has a question, he should be referred to his attorney for specific advice.

 
Sellers must supplement the disclosure in written form if the seller gains actual knowledge of a material defect after the original disclosure form was delivered to a prospective buyer. No particular form for supplemental disclosure is required so long as it is in writing.


Buyers Rights - If a buyer is not presented with a seller disclosure form by the time the contact is binding, the buyer may have certain rights to rescind the contract if there are material physical defects.
 

• The form does not substitute for any inspections and buyers should consider having inspections done or negotiating warranties with the seller. 

• If the form is presented to the buyer after the purchase contract is signed and prior to closing and it reveals material defects, the buyer has three business days to terminate the contract. Once again, specific legal advice is recommended.

• Gives the buyer the right to terminate the contract if the seller refuses or fails to provide the disclosure document prior to the conveyance of the residential real property.

  Lyn Sims (847)230-7324
       at RE/MAX Suburban

I proudly serve and sell real estate in the Northwest Suburbs of Chicago.  If you are thinking about purchasing or selling your home in the communities of Schaumburg, Hoffman Estates, Elk Grove Village, Roselle, Palatine, Medinah, Itasca, Bloomingdale, Carol Stream, Bartlett, Hanover Park, Streamwood, Elgin, South Elgin, St. Charles and more importantly, want to work with a local area expert, contact me immediately.

Resources:  Illinois Assoc of Realtors IAR

What is a Sellers Disclosure?  ©2009 Lyn Sims - RealEstateConsumerInfo.com and RealEstateBuyMe.com