Seller Disclosures Clarification

[Chris Witt]

Hi all. I tried posting this in the general forums and was told it is state specific so figured I would try here. Here is a fictitious scenario to illustrate my question.

 I'm selling my house. My buyer has his inspection and finds a major issue with foundations and rightfully requests a reduction in price. We try to negotiate but cannot come to terms so he backs out using inspection contingency clause. Week later I have a new buyer who knows the previous deal fell thru as a result of inspection so he asks what that inspection found. Am I obligated to inform him of anything? If not, what is the difference between disclosing that info and anything else such as the basement floods sometimes. 

Thanks all!

[Brie Schmidt]

@Chris Witt - Yes, that would be considered a material defect and must be disclosed

Illinois law requires you, as a seller, to tell a prospective buyer, in writing, what you know about the quality, healthfulness, and safety of your property. This includes things like past flooding and flood risk, unsafe conditions, municipal code violations, environmental issues, boundary line disputes, and material defects in specified structures, components, and systems.

You must make these disclosures prior to signing the sales contract, on a standard form that’s discussed below. The disclosure is not meant to serve as a warranty or substitute for inspections, but to put the buyer on an equal footing with the seller during contract negotiations.