When I first started selling Naperville real estate in 1982, people bought houses in an “as is” condition. The residential real estate sales world was governed by the two Latin words, caveat emptor – “buyer beware.” This meant that the buyers had to do their due diligence reviewing the property before purchase and then accept the property as they found it on the day they took occupancy. If the roof leaked during the first rainfall or the basement was found to be leaky, too bad. The common theory stated that the buyer was entitled to examine the property prior to making an offer. Once the agreement was final, it was understood that the buyer was satisfied with and accepted the present condition of the home.
Today, as in so many other aspects of our lives, things are not as simple as they used to be. In our litigious society, buyers are demanding satisfaction from a seller who did not reveal some material hidden defect such as the leaky roof or basement mentioned previously. Besides home inspections now being common practice, Illinois now has mandated disclosure forms that cover most potential material defects as well as environmental issues like radon gas, asbestos insulation, lead base paints and lead pipes. Even HIV/AIDS has become an issue in a real estate transaction. Some states require the seller to disclose that a previous occupant of the house had HIV/AIDS, others states expressly prohibit the seller from releasing this information.
Who would ever thought that today’s property disclosure form would require the seller to disclose if they are aware of methamphetamines ever being manufactured on the property. Light heartedly, I refer to this as the “Breaking Bad” question!
ADVICE: Because of these confusing and sometimes conflicting problems, here are some simple rules to follow:
- List your home with a Realtor® and use his or her experience and knowledge to guide you through the selling process.
- Take a careful tour of your home. Make a written list of any items that require repair or replacement and deal with as many as you can before going to market.
- Be sure to reveal to your agent any remaining problems with the house that you could not correct and ask them if they have a suggested resource.
- Be forthcoming and discuss with your agent any known defects when completing the state required disclosure forms. It is typically best to deal with these items before going to market. Illinois law is very clear that once a material defect is mitigated it does not need to be disclosed.
