Property Sellers Beware of Your Disclosure Obligations
The process of selling property can be a headache if sellers overlook their disclosure obligations. Generally, when an individual or a business purchases a property, they will conduct a walkthrough of the property to see whether it meets their needs. However, even with this basic inspection of a building, potential buyers will unlikely discover defects and hidden problems within the walls, roof, or floors. For this reason, a seller must understand that they have the legal obligation to disclose this information to potential buyers.
Under the Illinois Residential Real Property Disclosure Act, sellers of residential real estate property must disclose known defects about the property. See 765 Ill. Comp. Stat. § 77/5. The Act requires the seller to provide a detailed disclosure statement before the purchase and sale contract is signed. The statement must include information about flooding, roofing, asbestos, termites, underground tanks, lead paint, and pipes. Noncompliance can lead to liability for damages and attorney fees. A case was recently filed in Cook County Circuit Court, wherein two individuals filed a complaint against a construction company, Marchetti Constructions Inc., alleging that the company had sold the property without disclosing the property’s defects. (Ward & McGill v. Marchetti Construction Inc., Case No. 16 L 010825). The plaintiffs allege that they suffered damages from buying a piece of property that had defects. As a result of their damages, the plaintiffs are now seeking more than $50,000 from the defendant, plus costs. In the commercial arena, federal law also imposes numerous burdens on real estate sellers regarding the presence of environmental pollutants and toxic waste.
Tristan & Cervantes has represented many clients in commercial and residential real estate matters. Our land use practice has assisted clients in all aspects of real estate transactions including forcible detainers and eviction proceedings, zoning, and real estate sales and purchases.
Please contact our office via email at info@tristanlegal.com or call us at 312.345.9200 for more information regarding the scope and applicability of the mandatory disclosure requirements and for your real estate needs.
