Foreclosure in Illinois>Question Details

ARL78, Home Buyer in Illinois

What does it mean when a listing states: 'Sold as-is. Seller does not provide disclosures.'?

Asked by ARL78, Illinois Tue Jan 22, 2008

I thought sellers were legally required to furnish disclosures? Is this a sign that the home has substantial defects?

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"Caveat emptor" or in English "Buyer beware" I would make sure I used a competent Realtor and that a home inspection was done on the property. Your Realtor or Real Estate Lawyer can help with all the laws in Illinois that would be in affect on such a transaction.
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2 votes Thank Flag Link Tue Jan 22, 2008
When most home sellers list their property with a Realtor or listing broker, those sellers fill out what is known as a "Residential Real Property Disclosure Report." The report is a series of questions intended to elicit the disclosure of certain conditions of the property. As such, sellers provide information regarding leakage, defects, unsafe conditions, etc. to potential buyers.

With House Bill 358, sponsored by representative Novak, the Illinois General Assembly has amended the law making a few changes that home sellers should be aware of as their duties under the law are now expanded.


The bill requires a disclosure by a "Sellers." The law now defines sellers as "Every person or entity who is an owner, beneficiary of a trust, contract purchaser or lessee of a ground lease, who has an interest (legal or equitable) in residential real property. The law now adds an exemption with the following: "However, 'Seller' shall not include any person who has both (1) never occupied the residential real property and (2) never had the management responsibility for the residential real property nor delegated such responsibility for the residential real property to another person or entity." 765 ILCS 77/5 As such, persons who own property but delegate the property's management to others are still required to make a disclosure.


Under the old law, home sellers, in conjunction with their agent, usually filled out the residential real property disclosure report at the time they listed the property. That report, or a copy of that report, would usually be appended to all contract offers. Under the old law, Sellers were not responsible under the act for any inaccurate information resulting from acts, occurences, incidents or agreements arising after the date of the disclosure report. The amendment places the burden of an ongoing duty of the seller at all times prior to closing to supplement the form in writing of any error, inaccuracy or omission. 765 ILCS 77/30.


The new duty to supplement the disclosure report brings with it some additional risk to the Seller. For any supplemental disclosure, including that of a material defect, the prospective buyer will still be bound to the contract. However, in the event that the Seller had actual knowledge of the material defect at the time the prior disclosure was signed by the Seller, the prospective buyer will have the right to terminate the contract. 765 ILCS 77/40. Sellers should be mindful that the supplemental disclosure is not a vehicle for disclosing material defects after a contract is signed.


The penalties for failure to provide a disclosure are severe. Under the old law, prospective purchasers did not have any right to invalidate a contract solely because of non-compliance with the Act. Now, a prospective buyer shall have the right to terminate the contract if not provided with a disclosure. Further, a Seller who fails to comply with any duties of the act or discloses any false information on the report could be found liable for actual damages, court costs, and attorney fees. 765 ILCS 77/55


The residential real property disclosure report is not a contract. It is, however, a creature of statute and failure to comply with the statute can result in severe penalties for a Seller. Make sure to take this disclosure seriously.
1 vote Thank Flag Link Fri Jan 25, 2008
While I agree with everything that has been said, we (in Illinois) typically see the above statement for homes that are in foreclosure or are bank owned after the foreclosure. Reason being, the sellers lost their home and the bank is unable to provide any type of seller disclosure.

So while due diligence is needed on the buyer's part, it is not always indicative of substantial defects.

If you are looking at a propertry that has this language, select a buyer's real estate agent who is familiar with foreclosures/bank owned/REO/short sale properties. If you need a referral, I would be happy to provide you with one!

Best of Luck to You!
Liz Hoidas
1 vote Thank Flag Link Tue Jan 22, 2008
Buyer a house with sold as is seller jprovides no disclosure. what law does the seller or bank have to not told the buyer .
0 votes Thank Flag Link Mon May 7, 2012
Sold as-is is stating that the property is being sold in its current condition only; no repairs or updates will be made by the seller to satisfy the buyer. Wether or not a disclosure is offered depends on the circumstances surrounding the sale. Some sales are excluded from providing disclosures, according to the law (I am not an attorney) No disclosure does not mean that there are defects. I always recommend a home inspection on any sale and I would definately recommend a home inspection when a certain sale does not require disclosures for your own piece of mind before signing on the dotted line. Again, I am not an attorney.
0 votes Thank Flag Link Thu Jan 29, 2009
Has the seller ever occupied the property? If not, it may be beyond the scope and ability of the seller to provide disclsoures.

Banks typically sell properties without disclosures and as-is. Some properties will have major defects; others may be in very good condition.

Sellers are required to disclose what they know.......but cannot disclose what they do not. Find out why the seller is declining to provide discloures and selling as-is. Then, hire a competent and thorough inspector.
0 votes Thank Flag Link Thu Apr 10, 2008
Deborah Madey, Real Estate Pro in Brick, NJ
It means what you see or don't see is what you get. Buyer beware. This is typical with bank owned properties. When in doubt get it inspected.
0 votes Thank Flag Link Wed Apr 9, 2008
"House Bill 358" became Public Act 90-383 and state law 10 years ago!
any agent (or attorney) who does not know about the "now expanded" duites? well....
0 votes Thank Flag Link Mon Mar 10, 2008
""Caveat emptor" or in English "Buyer beware" I would make sure I used a competent Realtor and that a home inspection was done on the property. Your Realtor or Real Estate Lawyer can help with all the laws in Illinois that would be in affect on such a transaction."

I could not agree more. I highly recommend you cover yourself with a home inspection regardless of what was or was not disclosed. While the disclosure does cover some problems that may not be recognizable by a visual home inspection, the home inspector will disclose a great deal more.

Remember, the seller has an interest in selling the property and only the statutory responsibility to be forthcoming on the disclosure. An independent home inspector only works with your best interest in mind and has no reason (if they are independent) to intentionally not disclose a defect..

I will give you an example. Think about what would happen if you had no disclosure or an incomplete disclosure that did not reveal a leaking foundation (very common problem), and you did not hire an independent home inspector. After you move in, you find you have a foundation problem, and a mold problem. Now what is your recourse? Sue and hope to collect by proving deceit? (I am not a lawyer, so I only assume as a layman that that may be your case)! This is going to be costly and time consuming and there is risk you may not win.

The simple solution is to have a home inspection completed by a qualified, thorough, Home Inspector. Spend $300 or so and have piece of mind about your investment and your health. As James said below, consult an attorney and have the place inspected. Good Luck. Click my profile if you need help.
0 votes Thank Flag Link Thu Feb 28, 2008
A buyer has the right to ask for any repairs during the contracted time period. Once full disclosure has been provided either through a completed questionnaire by the seller or by inspection or by the buyer's inspection, a buyer can request any item be repaired. Some states require known repairs to be completed to the level of "operational" - no matter what the statement of condition. (i.e. stove burner not working, furnace broke, garage door, toilet doesn't flush....)

With that said, the seller will look at the offer made by the buyer and decide whether or not it is in their best interest to fulfill the buyer's request to repair or not. If the seller has completed inspections before the offer or is aware of repairs, they may place the home on the market in a "as is" state and the price should reflect these repairs that are needed and the seller does not want to complete them. (i.e. new roof, cracks in pavement....)

"As Is" homes do not necessarily mean major defects. It may simply mean the seller is not willing to give a carpet allowance, paint, or replace the old toilet.

Have your Realtor look over the disclosures and inspections to find the missing puzzle pieces (if there are any) to the "As Is". Then you can decide what the market value is on the home. Sometimes "As Is" offer great deals and sometimes they are just what they are - "AS IS".

0 votes Thank Flag Link Tue Jan 22, 2008
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