An Illinois licensee personally knows about a latent physical defect on a listed property that a reasonably diligent inspection would not uncover. The seller instructs the licensee to say nothing. What is the licensee's disclosure obligation under Illinois law?
Correct Answer
D) The licensee must disclose the defect because Illinois law 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 (225 ILCS 454) and the associated rules governing material adverse facts, a licensee has an affirmative duty to disclose latent material adverse facts that are actually known to the licensee and that would not be discoverable by a reasonably diligent inspection. This duty exists independently of seller instructions and cannot be waived by a confidentiality request.
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Related Topics & Key Terms
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Related Concepts
Death on property disclosure addresses whether sellers must inform buyers about deaths that occurred on the property, including natural deaths, suicides, and murders. Requirements vary significantly by state.
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.
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