Which of the following statements about Illinois residential property disclosure obligations is INCORRECT?
Correct Answer
C) A licensee's duty to disclose material adverse facts applies only to clients and never extends to customers.
Choice C is incorrect under Illinois law. Under the Illinois Real Estate License Act of 2000 (225 ILCS 454/15-25), a licensee owes a duty to disclose material adverse facts to all parties in a transaction, including customers — not solely to clients. Limiting this duty to clients only misrepresents the statutory obligation and is therefore the incorrect statement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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."
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
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