Under Illinois law, when does a licensee have a duty to disclose a material adverse fact about a property?
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.
Under the Illinois Real Estate License Act (225 ILCS 454/15-25), a licensee is required to disclose latent material adverse facts that are actually known to the licensee and that a reasonably diligent inspection would not reveal. This duty exists regardless of which party the licensee represents and cannot be waived by a seller confidentiality request when the fact is material.
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Related Concepts
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.
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
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