An Illinois buyer's agent personally knows that a property has a hidden structural defect that a standard home inspection would be unlikely to uncover. The seller has not mentioned the defect. Which statement correctly describes the licensee's obligation under Illinois law?
Correct Answer
B) The licensee must disclose the defect to the buyer because Illinois law requires licensees to disclose latent material adverse facts actually known to them that are not discoverable by a reasonably diligent inspection.
Under the Illinois Real Estate License Act of 2000 (225 ILCS 454/15-25), a licensee is required to disclose latent material adverse facts that are actually known to the licensee and that could not be discovered by a reasonably diligent inspection. This duty applies regardless of which party the licensee represents and cannot be waived by seller instructions.
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Related Topics & Key Terms
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Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
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.
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