After attorney review has concluded, a seller provides a supplemental disclosure to the buyer. The buyer believes this automatically grants an unrestricted right to terminate the contract. Which statement most accurately reflects Illinois law?

Correct Answer

C) The buyer is incorrect; the right to terminate after a supplemental disclosure is conditional and depends on the nature of the defect and whether the seller agrees to repair or remediate it

Under the Illinois Residential Real Property Disclosure Act (765 ILCS 77/35), a seller who discovers a new material defect after the initial disclosure must provide a supplemental disclosure. However, the buyer's resulting termination right is not unconditional. The statute ties the right to terminate to specific conditions: the nature and materiality of the newly disclosed defect and whether the seller agrees to repair or remediate the condition. If the seller agrees to cure the defect, the buyer's termination right may be extinguished. The right is therefore narrower than a blanket cancellation right.