Under the Illinois Residential Real Property Disclosure Act, a seller delivers the required disclosure report to the buyer after the parties have signed the contract. The buyer later discovers that the report reveals a material defect the buyer was unaware of at signing. Which of the following best describes the seller's potential liability exposure when the disclosure report itself contains a knowing misrepresentation of a material defect?
Correct Answer
C) The seller may be liable for actual damages, court costs, and reasonable attorney's fees if the buyer can prove the seller knowingly violated the Act by misrepresenting or concealing a material defect on the report.
Option C correctly states the liability standard under 765 ILCS 77/55. A seller who knowingly violates the Act — including by making a false statement or omitting a known material defect on the disclosure report — is liable to the buyer for actual damages, court costs, and reasonable attorney's fees. The Act's remedies are not limited to earnest money return when a knowing violation is established.
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Related Topics & Key Terms
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Related Concepts
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
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