A seller completes the Illinois Residential Real Property Disclosure Report but later discovers a hidden defect that was not detectable at the time of disclosure. Which statement best describes the seller's liability under the Illinois Residential Real Property Disclosure Act?
Correct Answer
D) The seller is liable only for defects within their actual knowledge at the time of disclosure; the report does not impose liability for genuinely unknown conditions.
Under 765 ILCS 77/35, the Illinois Residential Real Property Disclosure Act bases seller liability on actual knowledge at the time the disclosure is made. The report is not a warranty or guarantee against unknown defects — it requires sellers to disclose only those conditions they are aware of. A seller who genuinely did not know about a hidden defect is not liable under the Act for failing to disclose it.
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