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Mandated DisclosuresMaterial_adverse_facts_stigma_and_other_illinois_disclosuresMEDIUM

A seller believes that the fact that a previous occupant had HIV, or that a death occurred at the property, must be entered as a physical-condition defect on the Illinois Residential Real Property Disclosure Report. Is the seller correct?

Correct Answer

D) No, because Illinois law expressly excludes HIV status and the fact of a death at the property from required disclosures, and the disclosure report is limited to physical conditions and material defects.

Under the Illinois Residential Real Property Disclosure Act (765 ILCS 77) and the Illinois Human Rights Act, a seller is not required — and in fact is protected — from having to disclose that a prior occupant had HIV/AIDS or that a death occurred at the property. The disclosure report is a physical-condition instrument focused on structural, mechanical, and environmental defects. Treating stigmatized-property facts as standard physical defects would also risk violating fair housing principles by associating a protected class characteristic (disability) with property value.

Answer Options
A
Yes, because any fact that could affect a buyer's willingness to purchase must be listed as a material defect on the disclosure report.
B
Yes, because federal Fair Housing Act regulations require sellers to disclose prior occupants' medical histories on state disclosure forms.
C
No, but only because Chicago municipal ordinances preempt the statewide rule on this issue.
D
No, because Illinois law expressly excludes HIV status and the fact of a death at the property from required disclosures, and the disclosure report is limited to physical conditions and material defects.

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Related Topics & Key Terms

Key Terms:

difficulty_3disclosuresil_specific_disclosuresillinois_statematerial_adverse_facts_stigma_and_other_illinois_disclosuresphysical_conditionscenariostigmatized_property

Related Concepts

Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.

Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.

A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.

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