An Illinois property disclosure statement is used by home sellers to describe the condition of their property and identify any known material defects to buyers. In Illinois, a “material defect” is anything that poses a health or safety risk to the future occupants or that might adversely affect the property’s value. Sellers must complete the form and deliver it to prospective buyers before accepting a written agreement to transfer ownership. Buyers can then assess the reported information to determine whether the home is suitable for purchase.
While buyers can rely on the accuracy of the disclosure statement, there may exist defects of which the seller has no knowledge. Therefore, prospective buyers should employ a professional home inspector to examine the property and assess its value.
Purchase Agreement – Before entering into a purchase agreement, sellers must also provide prospective buyers with a disclosure concerning radon gas and the associated health risks. Sellers may also be required to issue a lead-based paint disclosure (for properties built before 1978) or a heating cost disclosure (for properties in Chicago).