After a seller provides a supplemental disclosure under the Illinois Residential Real Property Disclosure Act, under what circumstances may a buyer terminate the contract?
Correct Answer
A) The buyer may terminate only if the statutory conditions are met — specifically, if the newly disclosed defect was unknown at the time of the original disclosure and the seller's repair response does not satisfy the conditions set by the Act.
Under the Illinois Residential Real Property Disclosure Act (765 ILCS 77/35), a supplemental disclosure does not automatically create an unlimited termination right. The buyer's right to terminate is conditioned on specific statutory criteria: the defect must have been unknown to the seller at the time of the original disclosure, and the buyer's ability to terminate depends on whether the seller elects to repair or credit and whether that response meets the Act's requirements. The termination right is narrow and condition-specific, not a blanket cancellation right.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
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