Public Act 102-0765
 
HB4322 EnrolledLRB102 22898 LNS 32051 b


  
    AN ACT concerning civil law.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Residential Real Property Disclosure Act is 
amended  by changing Sections 5, 15, 20, 30, 35, 40, 45, 50, 55, 
and 65 as follows:
 



    (765 ILCS 77/5)



    Sec. 5. 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. The term includes a manufactured home as 
defined in subdivision (53) of Section 9-102 of the Uniform 
Commercial Code that is real property as defined in the 
Conveyance and Encumbrance of Manufactured Homes as Real 
Property and Severance Act. 

    "Seller" means every person or entity who: 
        (1) is a beneficiary of an Illinois land trust; or
        (2) has an interest, legal or equitable, in 
    residential property as:
            (i) an owner; , 
            (ii) a beneficiary of a
trust; , 
            (iii) a beneficiary pursuant to testate 
        disposition, intestate succession, or a transfer on 
        death instrument; or
            (iv) a 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.
    "Seller" does not include a party to a transfer that is 
exempt under Section 15. 

    "Prospective buyer" means any person or entity negotiating 
or offering
to become an owner or lessee of a ground lease of 
residential real property by means of a
transfer for value to 
which this Act applies.
    "Contract" means 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. 98-749, eff. 7-16-14; 99-78, eff. 7-20-15.)

 



    (765 ILCS 77/15)



    Sec. 15. Seller exemptions. The provisions of this Act do 
not apply to the following: 
A seller in any of the following 
transfers is exempt from this Act, regardless of whether a 
disclosure report is delivered: 

    (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 issued 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. As used in this paragraph, "trust" 
includes an Illinois land trust. 

    (4) Transfers from one co-owner to one or more other 
co-owners. 

    (5) Transfers from a decedent pursuant to testate 
disposition, or intestate succession, or a transfer on death 
instrument.

    (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 report 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 never not
been occupied. This does not 
include rehabilitation of existing residential real property. 

(Source: P.A. 88-111.)

 



    (765 ILCS 77/20)



    Sec. 20. Disclosure report requirements. A seller of 
residential real property shall
complete all applicable items 
in the disclosure report document described in Section
35
of 
this Act.  The seller shall deliver to the prospective buyer 
the written
disclosure report statement required by this Act 
before the signing of a contract 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 77/30)



    Sec. 30. Disclosure report supplement. If, prior to 
closing, any seller becomes aware has
actual knowledge of an 
error, inaccuracy, or omission in any prior disclosure report 
or supplement
document after delivery of that disclosure 
report or supplement document to a prospective buyer,
that 
seller shall supplement the prior disclosure report or 
supplement document with a written
supplemental disclosure, 
delivered by any method set forth in Section 50. 

(Source: P.A. 90-383, eff. 1-1-98; 91-357, eff. 7-29-99.)

 


    (765 ILCS 77/35)




    Sec. 35. Disclosure report form. The disclosures required 
of a seller
by this Act shall be made in the following form: 

RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT


    NOTICE:  THE PURPOSE OF THIS REPORT IS TO PROVIDE 
PROSPECTIVE BUYERS WITH
INFORMATION ABOUT MATERIAL DEFECTS IN 
THE RESIDENTIAL REAL PROPERTY BEFORE THE SIGNING OF A 
CONTRACT.  THIS
REPORT DOES NOT LIMIT THE PARTIES' RIGHT TO 
CONTRACT FOR THE SALE OF
RESIDENTIAL
REAL PROPERTY IN "AS IS" 
CONDITION.  UNDER COMMON LAW, SELLERS WHO DISCLOSE
MATERIAL 
DEFECTS MAY BE UNDER A CONTINUING OBLIGATION TO ADVISE THE 
PROSPECTIVE
BUYERS ABOUT THE CONDITION OF THE RESIDENTIAL REAL 
PROPERTY EVEN AFTER THE
REPORT IS DELIVERED TO THE PROSPECTIVE 
BUYER.  COMPLETION OF THIS REPORT BY
THE
SELLER CREATES LEGAL 
OBLIGATIONS ON THE SELLER; THEREFORE THE
SELLER MAY WISH TO 
CONSULT
AN ATTORNEY PRIOR TO COMPLETION OF THIS REPORT. 

Property Address: ...........................................

City, State & Zip Code: .....................................

Seller's Name: ..............................................

    This Report is a disclosure of certain conditions of the 
residential real
property listed above in compliance with the 
Residential Real Property
Disclosure Act.  This information is 
provided as of ...(month) ...(day)
...(year), and does not 
reflect any changes made or occurring after that date
or 
information that becomes known to the seller after that date.  
The
disclosures herein shall not be deemed warranties of any 
kind by the seller or
any person representing any party in this 
transaction.

    In this form, "am aware" means to have actual notice or

actual knowledge without any specific investigation or 
inquiry.
In this form, "material defect" means a condition 
that would
have a substantial adverse effect on the value of 
the residential
real property or that would significantly 
impair the health or
safety of future occupants of the 
residential real property
unless the seller reasonably 
believes that the condition has
been corrected.

    The seller discloses the following information with the

knowledge that even though the statements herein are not 
deemed
to be warranties, prospective buyers may choose to rely 
on
this information in deciding whether or not and on what 
terms
to purchase the residential real property.   

    The seller represents that to the best of his or her actual

knowledge, the following statements have been accurately noted

as "yes" (correct), "no" (incorrect), or "not applicable" to 
the
property being sold.  If the seller indicates that the 
response
to any statement, except number 1, is yes or not 
applicable, the
seller shall provide an explanation, in the 
additional information
area of this form. 



























































YESNON/A
1................Seller  has  occupied  the  property

within the last 12 months.
 (If "no," please identify capacity or explain relationship to property.) (No explanation is needed.)
2. ..... ..... ..... I currently have flood hazard 
 insurance on the property. 
3 2................I am aware of flooding or  recurring

leakage problems in the crawl

space or basement.
4 3................I  am  aware  that  the  property is











































































































































































located in a floodplain flood plain or
 that I currently have flood hazard
 insurance on the property.
5 4................I am  aware  of material  defects in

the basement or foundation

(including cracks and bulges).
6 5................I am aware of leaks or  material

defects in the roof, ceilings, or

chimney. 
7 6................I am  aware of  material  defects in

the walls, windows, doors, or floors.
8 7................I am aware of  material  defects  in

the electrical system.
9 8................I am  aware  of  material defects in

the plumbing system (includes

such things as water heater, sump

pump, water treatment system,

sprinkler system, and swimming

pool). 
10 9................I am aware of  material  defects  in 

the well or well equipment.
11 10................I am  aware of  unsafe conditions in

the drinking water.
12 11................I am aware of  material  defects  in

the heating, air conditioning, or

ventilating systems. 























































































































































































13 12................I am  aware  of  material defects in

the fireplace or woodburning 

stove.
14 13................I am aware of  material  defects  in

the septic, sanitary sewer, or

other disposal system.
15 14................I am aware of unsafe  concentrations

of radon on the premises.
16 15................I am aware of unsafe  concentrations

of or unsafe conditions relating

to asbestos on the premises. 
17 16................I am aware of unsafe  concentrations

of or unsafe conditions relating

to lead paint, lead water pipes,

lead plumbing pipes or lead in

the soil on the premises.
18 17................I  am  aware  of  mine   subsidence,

underground pits, settlement,

sliding, upheaval, or other earth

stability defects on the

premises.
19 18................I am aware of  current  infestations

of termites or other wood boring

insects. 
20 19................I am aware  of  a structural  defect

caused by previous infestations


















































































of termites or other wood boring

insects. 
21 20................I  am  aware   of  underground  fuel

storage tanks on the property.
22 21................I am  aware  of boundary or lot line

disputes. 
23 22................I have received notice of  violation

of local, state or federal laws

or regulations relating to this

property, which violation has not

been corrected.
24 23................I am aware that this property has

 been used for the manufacture

 of methamphetamine as

  defined in  Section 10 of

 the    Methamphetamine Control

 and Community Protection Act.

    Note:  These disclosures are not intended to cover the 
common
elements of a condominium, but only the actual 
residential real
property including limited common elements 
allocated to the
exclusive use thereof that form an integral 
part of the
condominium unit. 

    Note:  These disclosures are intended to reflect the 
current condition of
the premises and do not include previous 
problems, if any, that the seller
reasonably believes have 
been corrected.

    If any of the above are marked "not applicable" or "yes", 
please explain here
or use additional pages, if necessary: 

.............................................................

.............................................................

.............................................................

    Check here if additional pages used: .....

    Seller certifies that seller has prepared this report 
statement and
certifies that the information provided is based 
on the actual
notice or actual knowledge of the seller without 
any specific
investigation or inquiry on the part of the 
seller.  The seller
hereby authorizes any person representing 
any principal in this
transaction to provide a copy of this 
report, and to disclose
any information in the report, to any 
person in connection
with any actual or anticipated sale of 
the property. 
    (This paragraph shall be printed in boldface type.) THE 
SELLER ACKNOWLEDGES THAT THE SELLER IS REQUIRED TO PROVIDE 
THIS DISCLOSURE REPORT TO THE PROSPECTIVE BUYER BEFORE THE 
SIGNING OF THE CONTRACT AND HAS A CONTINUING OBLIGATION, 
PURSUANT TO SECTION 30 OF THE RESIDENTIAL REAL PROPERTY 
DISCLOSURE ACT, TO SUPPLEMENT THIS DISCLOSURE PRIOR TO 
CLOSING. 

Seller: ............................... Date: ...............

Seller: ............................... Date: ...............

    THE PROSPECTIVE BUYER IS AWARE THAT THE PARTIES MAY CHOOSE

TO NEGOTIATE AN AGREEMENT FOR THE SALE OF THE PROPERTY SUBJECT 
TO
ANY OR ALL MATERIAL DEFECTS DISCLOSED IN THIS REPORT ("AS 
IS").
THIS DISCLOSURE IS NOT A SUBSTITUTE FOR ANY INSPECTIONS 
OR WARRANTIES
THAT THE PROSPECTIVE BUYER OR SELLER MAY WISH TO 
OBTAIN
OR NEGOTIATE. (The remainder of this paragraph shall be 
printed in boldface type.)  THE FACT THAT THE SELLER IS NOT 
AWARE OF A PARTICULAR
CONDITION OR PROBLEM IS NO GUARANTEE 
THAT IT DOES NOT EXIST.
THE PROSPECTIVE BUYER IS AWARE THAT THE 
PROSPECTIVE BUYER HE MAY REQUEST AN INSPECTION OF
THE PREMISES 
PERFORMED BY A QUALIFIED PROFESSIONAL. 

Prospective Buyer: .................. Date: ...... Time: ....

Prospective Buyer: .................. Date: ...... Time: ....

(Source: P.A. 98-754, eff. 1-1-15.)

 



    (765 ILCS 77/40)



    Sec. 40. Material defect. 
    (a) If a seller discloses a material defect in the 
Residential Real Property Disclosure Report, including a 
response to any statement that is answered "yes" except 
numbers 1 and 2, and, in violation of Section 20, it is 
delivered to the prospective buyer after all parties have 
signed a contract, the prospective buyer, within 5 business 
days after receipt of that report, may terminate the contract 
or other agreement with the return of all earnest money 
deposits or down payments paid by the prospective buyer in the 
transaction without any liability to or recourse by the 
seller. 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.  
    (b) If a seller discloses a material defect is disclosed 
in a supplement to this
disclosure report document, the 
prospective buyer shall not have a right to terminate
unless: 
(i) 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; (ii) the material defect is not repairable prior to 
closing; or (iii) the material defect is repairable prior to 
closing, but within 5 business days after the delivery of the 
supplemental disclosure, the seller declines, or otherwise 
fails to agree in writing, to repair the material defect.  
    (c) 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 by any 
method set forth in Section 50, at the contact information 
provided by any seller or indicated in the contract or other 
agreement. Nothing in subsection (a) or (b) shall limit the 
remedies available under the contract or Section 55 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 77/45)



    Sec. 45. Other law. This Act is not intended to limit 
remedies 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 77/50)



    Sec. 50. Delivery of disclosure report. Delivery of the 
Residential Real Property Disclosure
Report provided by this 
Act shall be by: 


        (1) personal delivery or facsimile, email, or other 
    electronic delivery to the prospective buyer at the 
    contact information provided by the prospective buyer or 
    indicated in the contract or other agreement;


        (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 or , 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 77/55)



    Sec. 55. Violations and damages. If the seller fails or 
refuses to
provide the disclosure report document prior to the 
conveyance of the residential
real
property, the prospective 
buyer shall have the right to terminate the contract.  A seller 
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 the seller he knows to
be false shall be liable in the 
amount of actual damages and
court costs, and the court may 
award reasonable attorney's attorney fees
incurred by the 
prevailing party. 

(Source: P.A. 90-383, eff. 1-1-98.)

 



    (765 ILCS 77/65)



    Sec. 65. 
A copy of Sections 5 through 65 of Article 2 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.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law. 
  

                  

									INDEX
								

									Statutes amended in order of appearance
								
    765 ILCS 77/5
    765 ILCS 77/15
    765 ILCS 77/20
    765 ILCS 77/30
    765 ILCS 77/35
    765 ILCS 77/40
    765 ILCS 77/45
    765 ILCS 77/50
    765 ILCS 77/55