Disclosure Obligations When Selling a House “as-is” in Illinois

Illinois still requires the seller to disclose material defects even if the house is being sold “as-is.” However, an “as-is” sale indicates that, while the seller is disclosing defects, they will not be fixing, remodeling, or remediating the defects as part of the negotiation process. Read on to learn more about the implications of an “as-is” home sale.

Can I Sell A House “As-is” In Illinois?

Yes. Selling a house “as-is” is permitted by law. Selling a property “as-is” comes in handy when selling a home needing TLC, which may need major repairs that the current owner is unwilling to investigate or fix.  It is always a good idea to talk to a trusted Illinois real estate attorney when it comes to buying or selling a house as is.  

• What does selling a property “as-is” mean?  
• What must the seller disclose in an “as-is” property sale?  

What Implications Come With Selling A House “As-is”?

More often than not, properties sold “as is” are in some way defective, and the seller does not want to make these repairs. These defects must be disclosed if they arise to the level of being material. Material defects are those that would be harmful to any future resident’s safety or health or in some way devalues the property. (insert link to my other article re: mold disclosures )  

The flip side of selling a property “as is” is that it is likely to sell for less money than it otherwise would if the property was not in “as-is” condition. However, selling a property that needs TLC “as-is” gives buyers less negotiating power because the price is presumably already discounted to reflect the cost of repair that the property may need.  

Selling a property “as-is” is an excellent tool to maximize profits when selling a property in less than stellar condition. To learn more information about the process of selling a home in Illinois visit read our article, What to Expect When Selling a Home in Illinois

I’m Selling The Property “As-is” Do I Still Have To Provide Disclosures To The Buyer?

Yes. A disclosure report must be completely filled out and provided to the potential buyers. This report includes disclosing any material defects that you are aware of, including but not limited to issues with the septic tank, issues with drinking water, issues with excessive radon levels, or even any known flooding.    

In addition, you must also disclose whether the property is currently in violation of any local ordinance or involved in any lawsuits.  

• The complete list of required disclosures is contained in the Illinois Residential Real Property Disclosure Report form.

What Must The Seller Disclose If The Property Was Occupied By Someone Other Than The Seller In The Last 12 Months?

I rented out the house or inherited it, so I didn’t live there for more than 12 months. Do I need to complete the disclosure form?  

Even if you are selling the property “as-is” because you inherited the property or rented it out to tenants and didn’t personally live there in the last 12 months, you must nonetheless disclose any material defects to the best of your ability. Even if you are aware of no material defects, selling the property “as-is” implies that there could very likely be material defects under all the old wallpaper, etc. So, even if you check the boxes indicating that you have no awareness of material defects, it is necessary to fully and accurately complete the Disclosure Report to protect yourself from future liability.  

A buyer must be informed of any known defects to make an informed decision about whether to purchase the property and what offer to submit based on the information provided by the seller. If known material defects are non-disclosed by the seller, the seller may be liable for such defects, even when the property was sold “as-is.” Otherwise, the seller has an unfair advantage in negotiating the sale by knowing there are material defects and misleading the buyer by not disclosing the material defects.  Read our other article The Ultimate Guide to Selling a Home in Illinois for another great overview of Illinois real estate law.  

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