Can seller terminate contract due to environmental defects in IL?

Question

Can the seller terminate contract due to environmental defects in ILLINOIS?

Following a mold inspection, we (buyers) found out that there is mold in the house. After we gave our Inspection Response, the seller;

- first, refused to negotiate

-Then, they sent us a message saying that they are terminating the contract based on the following:
"244 environmental repair(s)at Closing. In the event either Seller or Buyer elects to terminate the
245 Contract due to an environmental defect as provided herein, the non-terminating Party shall
246 be obligated to sign the document terminating this Contract, and the Earnest Money shall be
247 refunded to Buyer. "

Can the seller do that? We have until 9/10 to negotiate. Is it legal?

Bill B. · Answer

It shouldn’t matter. You didn’t want the house with mold at the current price and the seller doesn’t want to sell at a lower price. Win win. You both walk away.

If you changed your mind and decided the house was still a good deal have your realtor talk to theirs. Have him say you’re sorry if you offended the seller and say you agree to waive all your contingencies and would like to proceed including putting your earnest deposit at risk.

Otherwise call it a win you escaped the deal at no cost.

Bill B. · Answer

Kindof…

Line 241 says the buyer at their sole discretion can accept the plan, terminate the contract or have seller leave 150% of the estimate in escrow.

But….

Line 246 says “if the seller or buyer elects to terminate the contract due to environmental defect” so obviously they have some way to cancel the contract due to this issue. And it also says buyer will be obligated to sign termination.

It sounds like the seller has to fix it or put 150% in escrow before closing. If they refuse the closing can’t occur. Hence they’ve basically terminated the contract.

This is all assuming the buyers found a real health issue and not a made up bargaining chip. As it seems many of these provisions only kick in above levels set by the EPA. Which is probably why the sale is cancelled if the seller won’t pay for repairs.

I take it the apology for any offense from the realtor wasn’t enough? Next step is start paying a lawyer to force the sale. But if the levels are above EPA it sounds like you lose. In non-covid times assuming this mold was a non-issue maybe you can force a person out of their home, maybe. Certainly the lawyer will tell you how much it costs to try btut they probably won’t give you a max it will cost.

John Teachout · Answer

They probably can do that. Do you think they have seller's remorse? A higher offer? Are you willing to accept the property as is?

Lawrence P. Schnapf · Answer

unclear from your post what your contract says. For residential agreements, usually buyer has the option to terminate the agreement, not seller. and there is an implied obligation to act in good faith in all contracts. However, for commercial contracts, the buyer can notify the seller of a environmental defect and if the parties cant agree on resolution, either party may terminate. so you need to read your contract.

Rob Hayes · Answer

This is a very interesting situation!  So, it's been 10 days or so...how are things progressing with the closing?  But what i'm mostly curious about is what happened with the seller?  They stated that they were going to cancel the contract...but now you're moving forward with the contract.  So what happened...What did the sellers say when they changed their mind?

Lawrence P. Schnapf · Answer

the excerpts you shared do not appear to give the seller to terminate for environmental issues but only has option tor remediate or do a hold back. BTW- there really is no "acceptable" amount of mold. The EPA guidance suggests abatement options based on the square footage of mold.

If you are waiving, you need to determine the source of the water moisture causing the mold and the extent of the mold. sometimes, mold can grow in non-visible areas and can be worse than visual assessment.

Bill B. · Answer

Cool. GL. Let us know.

Was it “non-issue mold” below EPA limits?

Tolun Ozarslan · Answer

We waived the inspections and pushing to buy the house.

Tolun Ozarslan · Answer

Thanks for all your replies! Here is the full paragraph. It only give 3 options to the seller and to term doesn't seem to be one of them.

"233 (C) ENVIRONMENTAL DEFECT. For purposes of this Paragraph an environmental defect is a234 toxic or hazardous substance at a level and condition found above those set as acceptable by235 the United States Environmental Protection Agency, the Illinois Environmental Protection236 Agency, the Illinois EmergencyManagement Agency or applicable local governmental237 agency. If the stated defect is any toxic or hazardous substance, then Seller, at Seller’s option238 and expense, may have the substance remediated, removed, or reduced to an acceptable239 level prior to Closing. Buyer, at Buyer’s option and expense, is responsible for re-inspection240 of the remediation and proof of re-inspection by the same inspector(s) as previously used or241 by similarly qualified inspector(s). Buyer, at Buyer’s sole discretion, may accept theplan of242 remediation, terminate this Contract, or allow the Seller to escrow one and one half (1 ½)243 times the amount of the bid or written estimate, as determined by the Buyer, of such244 environmental repair(s)at Closing. In the event either Seller or Buyer elects to terminate the245 Contract due to an environmental defect as provided herein, the non-terminating Party shall246 be obligated to sign the document terminating this Contract, and the Earnest Money shall be247 refunded to Buyer. "

Can seller terminate contract due to environmental defects in IL?

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