What the Law Requires
The Illinois Residential Real Property Disclosure Act (765 ILCS 77) requires sellers of residential property to complete a written disclosure report identifying known material defects before the buyer signs the purchase contract. The idea is simple: buyers deserve to know what they are buying, and sellers may not hide problems they know about.
Before we go further, one deadline you need to see up front, because it surprises more buyers than anything else in this area: a lawsuit under the Act must be filed within one year of the earlier of the date of possession, date of occupancy, or date of recording. If you moved in ten months ago and just found the problem, the clock is nearly out on your statutory claim. Other claims, like common law fraud, have longer deadlines, but the Act's own remedy is short-lived.
This article explains what must be disclosed, what to do when a seller lied, and how to protect yourself before you buy. It is general information, not legal advice.
What the Disclosure Report Covers
The statutory form in Section 35 of the Act requires the seller to disclose known problems in specific categories, including:
- Flooding or recurring leakage in the basement or crawl space, and whether the property is in a floodplain
- Material defects in the basement or foundation, including cracks and bulges
- Leaks or material defects in the roof, ceilings, or chimney
- Material defects in walls, windows, doors, or floors
- Defects in the electrical, plumbing, and heating and cooling systems, including the water heater and sump pump
- Defects in the well or septic systems, and unsafe conditions in the drinking water
- Unsafe concentrations of radon, asbestos, lead paint, lead pipes, or lead in the soil
- Mine subsidence or other soil stability defects
- Current or prior infestations of termites or other wood-boring insects, and related structural damage
- Underground fuel storage tanks
- Boundary or lot line disputes
- Notices of violation of local, state, or federal laws or building codes
- Use of the property for manufacturing methamphetamine
Two things to notice. First, the form asks about specific categories, not "anything wrong with the house." Second, the seller's duty covers what the seller actually knows. Sellers are not required to hire inspectors to find problems for you.
Chicago Housing Stock: Where Problems Hide
Chicago's older housing, the bungalows, two-flats, and greystones that define whole neighborhoods, tends to generate exactly the kinds of defects the form asks about.
Foundations and water. Much of the city sits on clay soil that swells and shrinks with moisture. Foundation settling, cracking, and basement water infiltration are common, and they fall squarely within the form's flooding and foundation questions.
Sewer backups. Chicago's combined sewer system backs up in heavy rain. A seller who has experienced sewer backups or basement flooding, or who installed a backflow preventer or overhead sewer because of them, knows about a condition the form requires disclosing.
Lead paint. Homes built before 1978 may contain lead-based paint, and federal law adds its own disclosure requirements for those sales on top of the Illinois form.
Porches. After the porch collapses that led to Chicago's porch inspection ordinance, porch structure is a known issue in the city. Known structural problems and code violations belong on the form.
"I Didn't Know": What Sellers Try and What Actually Happens
Because the Act turns on the seller's knowledge, the fight in most cases is over what the seller knew. The patterns repeat:
- Fresh paint over water stains. Cosmetic concealment right before listing is common, and it is also evidence. A just-painted basement ceiling above a wet floor tells a story.
- "As-is" sales. Selling as-is does not eliminate the seller's duty under the Act to disclose known material defects. Some sellers genuinely believe otherwise. They are wrong.
- Selective memory. A seller who "did not know" about the leak often turns out to have repair invoices, an insurance claim, or a text thread with a contractor saying otherwise.
That last point is where cases are won. Permit records, insurance claim histories, contractor invoices, prior listing photos, and conversations with neighbors frequently establish knowledge a seller denies. Discovery in litigation can reach all of it.
Your Remedies as a Buyer
Statutory claim under the Act. A seller who knowingly violates the Act, or who discloses information on the report knowing it is false, is liable for the buyer's actual damages and court costs, and the court may award reasonable attorney fees to the prevailing party. The attorney fee provision matters: it changes the economics of pursuing mid-sized claims that would otherwise cost more to litigate than the repair. Remember the deadline: one year from possession, occupancy, or recording, whichever came first.
Common law fraud. If the seller made affirmative misrepresentations, you may also have a fraud claim, which carries a longer five-year limitations period and can support punitive damages in appropriate cases. Fraud requires proving the seller made a false statement of material fact, knew it was false, intended you to rely on it, and that you reasonably relied to your detriment. Our fraud practice page explains these claims in more detail.
Contract termination before closing. If the disclosure report reaches you late, after the contract is signed, and discloses a material defect, the Act gives you a window of 5 business days after receipt to terminate and recover your earnest money. These termination rights end at conveyance, so they only help buyers who act before closing.
What to Do If You Have Already Discovered the Problem
- Document immediately. Photograph and video the defect, keep everything the repair people tell you in writing, and get written repair estimates.
- Gather the seller-knowledge evidence. The disclosure report itself, the listing, permit history, and anything the inspector flagged. Ask your neighbors what they knew about the property; they often know a lot.
- Mind the one-year deadline. If you are anywhere near it, get legal advice now. The statutory claim, with its attorney fee provision, is usually the one you least want to lose.
- Send a documented demand. Many disclosure cases resolve without suit when the seller sees the evidence of knowledge laid out. When they do not, the case is filed in the circuit court, for Chicago-area properties typically in Cook County.
Protecting Yourself Before You Buy
- Hire a qualified inspector and attend the inspection. Ask questions, especially about water.
- Read the disclosure report line by line. Vague or contradictory answers are a signal to push for clarification in writing before you sign.
- Check the property's history. City of Chicago permit records, prior listings, and FEMA flood maps are all public.
- Order specialty inspections where the house warrants it. Sewer scoping, radon testing, and structural assessments are cheap compared to the problems they find.
Talk to Us
Our practice handles Residential Real Property Disclosure Act claims for buyers across the Chicago area. If you bought a home and the problems started appearing after the boxes were unpacked, contact The Law Office of Krista Krepp at contact@krepplaw.com or schedule a consultation online. Consultations are free, and the one-year deadline makes early advice valuable.
Frequently Asked Questions
How long do I have to sue a seller for failing to disclose defects in Illinois? A claim under the Residential Real Property Disclosure Act must be filed within one year of the earlier of possession, occupancy, or recording of the deed. Common law fraud claims carry a five-year period. Because the statutory claim includes a potential attorney fee award, missing the one-year window is costly.
The seller sold the house "as-is." Do I have any claim? Possibly. An as-is clause does not eliminate the seller's statutory duty to disclose known material defects on the report, and it does not license lying. As-is language can affect other theories, so the interplay is worth reviewing with counsel.
The seller says they did not know about the problem. Is that the end of it? No. Knowledge is proven circumstantially: repair invoices, insurance claims, permits, prior listing photos, painted-over stains, and neighbor accounts. Sellers who lived with a recurring problem rarely leave no trace of it.
What can I recover if I win? Under the Act, actual damages (typically the cost of repair or the diminished value), court costs, and, at the court's discretion, reasonable attorney fees for the prevailing party. A parallel fraud claim can add punitive damages in appropriate cases.
Does the disclosure requirement apply to every home sale? The Act applies to most sales of residential property with one to four units, with limited exceptions (for example, certain transfers between co-owners or by court order). Foreclosure-related sales and estate transfers raise their own questions, so check how the Act applies to your specific transaction.
My inspector missed the defect too. Does that hurt my case? Not necessarily. The seller's duty under the Act turns on the seller's knowledge, not on what an inspection could have found. A hidden defect that an ordinary inspection would not reveal is exactly what the Act is aimed at. The inspection report can even help, by showing the defect was not visible to a professional.