An Illinois licensee has actual knowledge of a latent physical defect that a reasonably diligent buyer inspection would not uncover. The seller requests that the licensee remain silent about the defect. What is the licensee's obligation?
Correct Answer
B) The licensee must disclose the defect because Illinois requires disclosure of latent material adverse facts actually known to the licensee that a reasonably diligent inspection would not reveal.
Under the Illinois Real Estate License Act and associated disclosure obligations, a licensee who has actual knowledge of a latent material adverse fact that a reasonably diligent inspection would not uncover must disclose that fact regardless of seller instructions. A seller's request for confidentiality does not override this statutory duty.
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Related Topics & Key Terms
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Related Concepts
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.
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
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