A buyer receives the Illinois statutory disclosure report for the first time after all parties have already signed the purchase contract. Under the Illinois Residential Real Property Disclosure Act, what remedy is available to the buyer?
Correct Answer
A) The buyer may terminate the contract within 5 business days after receiving the late report and is entitled to the return of any earnest money or down payment.
Under the Illinois Residential Real Property Disclosure Act (765 ILCS 77/55), when the disclosure report is delivered after the contract has been signed by all parties, the buyer has the right to terminate the contract within 5 business days of receiving the report. Upon valid termination, the buyer is entitled to the return of any earnest money or down payment paid. This right exists specifically because the buyer did not have the report available before agreeing to the contract.
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Related Topics & Key Terms
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Related Concepts
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
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