Known as the RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT simply states a seller or lessor (yes lessor) must disclose any defect known to him or her. This includes known latent defects which are defects in the property that cannot be seen by the eye but the seller or lessor is aware of. The Residential disclosure form should be given to seller or lessor to complete at the time the broker has them sign the listing agreement. At the time the broker receives an offer and the offer is accepted the listing broker must provide the buyerâ€™s broker a copy of the Real Property Disclosure Report to be given to the buyer and the buyerâ€™s attorney for review. The Real Property Disclosure Report in no way takes the place of a professional home inspection. Please review the actual form at your leisure http://www.saveonmls.com/docs/property%20disclosure.pdf
While I am able to give you a general summary of the Real Property Disclosure Report it is important to know what is mean by Real Property as defined by our state, "Residential real property" means real property improved with not less than one nor more than 4 residential dwelling units; units in residential cooperatives; or, condominium units, including the limited common elements allocated to the exclusive use thereof that form an integral part of the condominium unit.(1)
Please note according to Illinois law this report should also be given in lessee situations for the above type named dwellings.
"Seller" means 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. However, "seller" shall not include any person who has both (i) never occupied the residential real property and (ii) never had the management responsibility for the residential real property nor delegated such responsibility for the residential real property to another person or entity. (1)
"Prospective buyer" means any person or entity negotiating or offering to become an owner or lessee of residential real property by means of a transfer for value to which this Act applies. (1)