Illinois Home Seller Disclosure Requirements

Illinois has a clean statutory disclosure regime under the Residential Real Property Disclosure Act, 765 ILCS 77. Every seller of residential real property of one to four dwelling units must complete and deliver the Residential Real Property Disclosure Report to the buyer before the contract is signed. On top of the Disclosure Report, Illinois layers a mandatory Radon Hazards disclosure (one of the strictest in the country), a Megan's Law notice, lead-paint disclosure for pre-1978 homes, and in Chicago, a separate heating-cost disclosure ordinance. This page walks through what each form requires, what the exemptions look like, and what happens when delivery slips.

General information only, not legal advice. Illinois disclosure obligations are enforced by statute. Work with an Illinois real estate attorney or licensed managing broker on any specific situation.

The Residential Real Property Disclosure Report (the central rule)

The Residential Real Property Disclosure Act, 765 ILCS 77, requires the seller of residential real property of one to four dwelling units to complete and deliver the statutory Disclosure Report to the prospective buyer before the buyer signs the contract. The form's content is prescribed by statute under 765 ILCS 77/35, with twenty-three specific defect questions covering:

• Flooding or recurring leakage in the crawl space or basement.
• Material defects in the basement or foundation, including cracks and bulges.
• Leaks or material defects in the roof, ceilings, or chimney.
• Material defects in the walls, windows, doors, or floors.
• Material defects in the electrical system.
• Material defects in the plumbing system (interior or exterior).
• Material defects in the well or well equipment, if applicable.
• Unsafe conditions in drinking water.
• Material defects in the heating, air conditioning, or ventilating systems.
• Material defects in the fireplace or wood-burning stove.
• Material defects in the septic, sanitary sewer, or other disposal system.
• Unsafe concentrations of radon on the premises.
• Unsafe concentrations of, or unsafe conditions relating to, asbestos.
• Unsafe concentrations of, or unsafe conditions relating to, lead paint or pipes.
• Mine subsidence, underground pits, settlement, sliding, upheaval, or other soil problems.
• Current infestations of termites or other wood-boring insects.
• Structural defects caused by previous infestations.
• Underground fuel storage tanks on the property.
• Boundary or lot-line disputes.
• Encroachments, easements, or shared rights of use.
• Improvements or repairs made without required permits.
• Improvements or repairs not in compliance with applicable building codes.
• Past or present water intrusion or material seepage at any structure.

Each question is answered Yes, No, or Not Applicable. The seller is required to disclose based on actual knowledge as of the date the report is signed. The statute does not impose an investigation duty; the seller is not required to inspect or test for conditions they do not already know about.

Radon Hazards disclosure (420 ILCS 46)

The Illinois Radon Awareness Act, 420 ILCS 46, requires sellers of residential real property to provide buyers with the Illinois Department of Public Health pamphlet Radon Testing Guidelines for Real Estate Transactions and the Illinois Disclosure of Information on Radon Hazards form before the contract is signed. The form requires the seller to disclose any known elevated radon concentration, any records or reports of prior radon testing, and any mitigation work performed.

Illinois is one of the most aggressive radon states in the country: northern Illinois is a known high-radon zone (EPA Zone 1) and the disclosure is mandatory regardless of location within the state. Failure to deliver the radon form is treated as a separate violation from a Disclosure Report failure and supports a separate buyer remedy.

Lead-based paint and Megan's Law

Federal law (42 USC 4852d) requires lead-based paint disclosure for homes built before 1978, with a 10-day inspection period unless waived. Standard Illinois purchase contracts include a Megan's Law notice directing the buyer to the Illinois State Police Sex Offender Registry; sellers are not required to volunteer information about specific registered offenders.

Chicago heating-cost disclosure

Chicago has a separate municipal heating-cost disclosure ordinance (Chicago Municipal Code 5-16) that does not apply elsewhere in Illinois. The ordinance requires sellers of one-to-six-unit residential properties within Chicago to disclose monthly heating costs for the most recent twelve-month period. The form is delivered with the contract or before closing, depending on local practice. Sellers must obtain the cost data from utility companies; the city has standardized request forms for this purpose.

HOA, condo, and common-interest community disclosure

Properties in condominium associations are governed by the Illinois Condominium Property Act, 765 ILCS 605. Section 22.1 of the Act requires the seller to provide the buyer with a comprehensive disclosure package: the declaration, bylaws, rules and regulations, the most recent statement of common expenses, the most recent annual report, a statement of any capital expenditures planned in the current or following two fiscal years, and a statement of the status of any pending litigation. Buyers have a 30-day right to obtain this package once requested.

Properties in non-condo common-interest communities are governed by the Common Interest Community Association Act, 765 ILCS 160. Disclosure requirements are similar though somewhat less prescriptive than the Condominium Property Act.

Delivery timing — before signing the contract

The Disclosure Report and the Radon Hazards disclosure must both be delivered before the buyer signs the contract. If either is delivered after signing, the buyer may terminate the contract within three business days of receipt (or within five business days if delivered by mail) without penalty. Late delivery is not a way to cure missed disclosure; it gives the buyer a free exit window.

If a previously delivered Disclosure Report becomes inaccurate before closing due to information the seller learns later, the seller must promptly correct the report and deliver an updated version. The buyer's three-day termination right reopens for the corrected items.

Exemptions — when the Disclosure Report is not required

Several transfers are exempt from the Disclosure Report requirement under 765 ILCS 77/15:

• Transfers pursuant to court order (probate, divorce, partition, bankruptcy).
• Transfers from a mortgagor to a mortgagee by deed in lieu of foreclosure.
• Transfers by a fiduciary in the course of administering an estate, trust, or conservatorship.
• Transfers between co-owners.
• Transfers to a spouse, child, parent, grandparent, or grandchild.
• Transfers between government entities.
• Transfers of newly constructed residential property never previously occupied.
• Transfers of property where the seller has not occupied the property at any time within the twelve months preceding the date of the transfer.

The "never occupied" exemption is the loophole most frequently abused by investors and flippers, but it does not protect the seller from common-law fraud claims if the seller actually knew about a defect and concealed it. Illinois courts have repeatedly held that statutory exemption from the Disclosure Report does not exempt the seller from honesty in response to direct questions.

Consequences of non-disclosure or false answers

Illinois sellers who provide false Disclosure Report answers or skip delivery face:

• Buyer's termination right: if the report or radon form was not delivered before contract, the buyer can terminate within three business days of receipt (five if mailed), with full earnest money refund.
• Actual damages: under 765 ILCS 77/55, the buyer may recover actual damages plus court costs and reasonable attorney's fees in any action for a violation of the Disclosure Act. The fee-shifting provision is statutory and does not require a contract clause.
• Common-law fraud: in cases of active concealment, traditional fraud remedies including rescission and punitive damages remain available.
• Radon Act violations: 420 ILCS 46 carries its own civil penalty framework for failure to provide the radon form and pamphlet.
• Broker license consequences: licensed managing brokers and salespersons who knowingly participate in non-disclosure face Illinois Department of Financial and Professional Regulation discipline.

The statutory attorney's-fee award under 765 ILCS 77/55 is the line every Illinois seller should remember. Even modest damages cases get filed because the fee award is statutory and one-way (the prevailing buyer recovers; the prevailing seller does not).

The disclosure folder you should build before listing

Illinois sellers who arrive at the closing with documentation already organized substantially reduce Disclosure Report completion time and post-sale litigation risk. Items to gather:

• Certificate of occupancy and any open or expired permits.
• Survey showing property lines, easements, and any encroachments.
• Roof install date, contractor, and warranty paperwork.
• HVAC, water heater, and major appliance records.
• Radon test results and any mitigation system documentation.
• Sump pump and drain tile install date and service history.
• Basement waterproofing or foundation crack repair work.
• Septic permit, pumping records, and most recent inspection (rural and outer suburbs).
• Well water test results (bacteriological and chemical).
• Termite and other wood-boring insect treatment history.
• Mine subsidence insurance policy if in a coal region (parts of southern and central Illinois).
• Underground or above-ground fuel storage tank documentation.
• Lead-paint records if home is pre-1978.
• Insurance claim history on the property.
• Chicago heating-cost disclosure utility data (Chicago only).
• Condo disclosure package and recent assessment letters if applicable.

For a deeper look at what records buyers and their inspectors specifically ask for at closing, see What Maintenance Records Do Home Buyers Ask For at Closing? For comparable state frameworks, see California, Texas, Florida, New York, North Carolina, Georgia, and Pennsylvania seller disclosure articles.

The bottom line for Illinois sellers

The Disclosure Report and the Radon Hazards form are both mandatory and must both be delivered before the buyer signs. The statutory attorney's-fee award under 765 ILCS 77/55 makes small disclosure cases economical for buyers to file. Chicago adds the heating-cost ordinance on top. Exemptions are narrow and do not protect against active concealment. The cost of complete and honest disclosure is near-zero; the cost of an undisclosed radon mitigation history or basement flood surfacing post-closing is not.