Residential Real Estate Sales Disclosure Statement
Illinois Complied Statutes
Residential Real Property Disclosure Act - 765 ILCS 77
Short title: This Act may be cited as the
Residential Real Property Disclosure Act. (Source: P.A. 88-111.)765
ILCS 77/1
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.
"Seller" means every person or entity who is an owner, beneficiary
of a trust, 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.
"Prospective buyer" means any person or entity negotiating or offering
to become an owner or lessee of residential real property by means of a
transfer for value to which this Act applies. (Source: P.A. 90-383, eff.
1-1-98.)765 ILCS 77/5
Except as provided in Section 15, this Act applies to any
transfer by sale, exchange, installment land sale contract, assignment
of beneficial interest, lease with an option to purchase, ground lease,
or assignment of ground lease of residential real property. (Source: P.A.
88-111.)765 ILCS 77/10
The provisions of this Act do not apply to the following:
(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 issue 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.
(4) Transfers from one co-owner to one or more other co-owners.
(5) Transfers pursuant to testate or intestate succession.
(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 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 not been occupied. (Source: P.A. 88-111.)765 ILCS 77/15
A seller of residential real property shall complete all applicable
items in the disclosure document described in Section 35 of this Act. The
seller shall deliver to the prospective buyer the written disclosure statement
required by this Act before the signing of 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. 88-111.)765 ILCS 77/20
Liability of seller:
(a) The seller
is not liable for any error, inaccuracy, or omission of any information
delivered pursuant to this Act if (i) the seller had no knowledge of the
error, inaccuracy, or omission, (ii) the error, inaccuracy, or omission
was based on a reasonable belief that a material defect or other matter
not disclosed had been corrected, or (iii) the error, inaccuracy, or omission
was based on information provided by a public agency or by a licensed engineer,
land surveyor, structural pest control operator, or by a contractor about
matters within the scope of the contractor's occupation and the seller
had no knowledge of the error, inaccuracy, or omission.
(b) The seller shall disclose material defects of which the
seller has actual knowledge.
(c) The seller is not obligated by this Act to make any specific
investigation or inquiry in an effort to complete the disclosure
statement. (Source: P.A. 90-383, eff. 1-1-98.)765 ILCS 77/25
Disclosure supplement: If, prior to closing,
any seller has actual knowledge of an error, inaccuracy, or omission in
any prior disclosure document after delivery of that disclosure document
to a prospective buyer, that seller shall supplement the prior disclosure
document with a written supplemental disclosure. (Source: P.A. 90-383,
eff. 1-1-98; 91-357, eff. 7-29-99.)765 ILCS 77/30
Disclosure report form. The disclosures required of a seller
by this Act shall be made in the following form:
[See USLF form IL-37014]
Material defect: 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. If a material defect is disclosed
in a supplement to this disclosure document, the prospective buyer shall
not have a right to terminate unless 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. 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 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 77/40
This Act is not intended to limit 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 77/45
Delivery of the Residential Real Property Disclosure Report provided
by this Act shall be by: (1) personal or facsimile
delivery to the prospective buyer;
(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, 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 77/50
Violations and damages: If the seller fails
or refuses to provide the disclosure document prior to the conveyance of
the residential real property, the buyer shall have the right to terminate
the contract. A 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 he knows to be
false shall be liable in the amount of actual damages and court costs,
and the court may award reasonable attorney fees incurred by the prevailing
party. (Source: P.A. 90-383, eff. 1-1-98.)765 ILCS 77/55
No action for violation of this Act may be commenced later than
one year from the earlier of the date of possession, date of occupancy,
or date of recording of an instrument of conveyance of the residential
real property. (Source: P.A. 88-111.)765 ILCS 77/60
A copy 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.) 765 ILCS 77/65
This Act takes effect on October 1, 1994. (Source: P.A. 88-111.)765
ILCS 77/99
