A seller completes an Illinois Residential Real Property Disclosure Report and later a hidden structural defect is discovered that the seller had no prior knowledge of. Which statement best describes the seller's legal exposure under the disclosure statute?
Correct Answer
A) The seller has no statutory violation because the report requires disclosure of conditions within the seller's actual knowledge; it does not impose liability for defects the seller genuinely did not know about.
The Illinois Residential Real Property Disclosure Act requires sellers to disclose conditions of which they have actual knowledge at the time of completing the report. It is a knowledge-based disclosure obligation, not a warranty or guarantee. A seller who genuinely had no knowledge of a defect has not violated the statute when that defect later comes to light.
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