In 1998, the Illinois Real Property Disclosure Act was enacted to protect homebuyers. It requires sellers to disclose information on any material defects in the residential real property to the buyer before signing a contract. On May 13, 2022, changes to this Act, also known as HB4322, were signed into law by Governor Pritzker, with the new changes to be effective immediately.

You can download the most updated form here.

Here are some of the significant changes and updates to the Act include:

• The buyer now has five (5) days to terminate the contract if the seller disclosed a material defect after the fact. The prior version only allowed the buyer three (3) days.

• New language in Section 30, Disclosure Report Supplement, makes it clear that sellers must amend the disclosure report if the seller has gained new information about the property that would change the seller's response.

• Buyers can terminate the contract after the seller discloses a defect in the Disclosure Report Supplement if 1) The defect was one that the seller knew about but did not disclose before; 2) The defect is not repairable prior to closing; or 3) It is repairable prior to closing, but within five (5) days after delivery of supplement, seller declines or fails to agree in writing, to repair.

• A provision stating an exempt seller does not forfeit the exempt status regardless of whether they supplied a disclosure report. Sellers exempt from disclosure report include 1) Newly constructed residential property; 2) Transfer between co-owners; 3) Transfers made to a spouse, or to a person or persons in the lineal line; 4) Transfers from a decedent pursuant to testate disposition or intestate succession, or a transfer on death instrument; 5)Transfers pursuant to court order; 6) Transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; and 7) Transfers from a government entity.

• New language clarifies that newly constructed residential property does not include rehab of an existing residential property meaning rehabbers and flippers are not exempt from supplying a disclosure report.

• Disclosure forms can now be sent to the buyer via email and other electronic delivery methods.

You can also see an overview of the changes at Illinois Realtor here.

As a home seller, you must comply with the Illinois state law requirements for disclosure. You don't want to risk your being sued after the sale of your home because you were not in compliance.

If you're in the process of buying or selling your home and you need legal advice, schedule a consultation with the Law Office of Alexis Hart McDowell today.