Under Illinois law, when must a real estate licensee disclose a material adverse fact about a property to a party in a transaction?
Correct Answer
D) When the licensee has actual knowledge of a latent material adverse fact that would not be discovered by a reasonably diligent inspection, regardless of which party the licensee represents.
The Illinois Real Estate License Act imposes an affirmative duty on licensees to disclose latent material adverse facts that are actually known to the licensee and that would not be discoverable by a reasonably diligent inspection. This duty applies regardless of agency relationship and cannot be overridden by a seller's confidentiality request when the fact is material and latent.
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Related Topics & Key Terms
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Related Concepts
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