Illinois real estate transactions can involve several different disclosure requirements. Some disclosures come from the Illinois Residential Real Property Disclosure Act, while others arise from the Illinois Real Estate License Act, federal law, radon requirements, landlord-tenant law, or the facts of a particular transaction.
A property-condition disclosure is not the same as an agency disclosure, and a seller's obligations are not identical to a Broker's professional duties.
This guide explains the major Illinois real estate disclosure requirements, when they can apply, who is responsible, and why disclosures should be handled before important transaction deadlines.
A residential transaction can involve several separate disclosure categories:
| Disclosure Area | Typical Purpose |
|---|---|
| Residential Real Property Disclosure Report | Seller's actual knowledge of material property defects |
| Agency Disclosure | Explains who the Broker represents |
| No-Agency Disclosure | Tells a customer the Broker does not represent them |
| Dual Agency Disclosure | Obtains informed consent when one licensee represents both sides |
| Licensee Ownership Disclosure | Identifies a licensee's personal interest in the property |
| Compensation Disclosure | Explains certain compensation arrangements and sources |
| Radon Disclosure | Provides required Illinois radon information |
| Lead-Based Paint Disclosure | Federal disclosure for applicable pre-1978 housing |
| Flood Disclosure | Applies to certain Illinois residential rental situations |
| Material Fact Disclosure | Addresses known latent material adverse physical facts |
| Contemporaneous Offer Disclosure | Applies when one designated agent represents competing clients on the same property |
Not every transaction requires every disclosure.
The correct disclosure depends on the property, parties, transaction type, agency relationship, and applicable law.
Students and new Brokers sometimes hear the word:
Disclosure
and think only about the seller's property-condition form.
In Illinois, disclosure can involve several completely different legal issues.
For example:
What does the seller actually know about material defects?
Who does the Broker represent?
Does the Broker personally own or have an interest in the property?
Are radon or lead-based paint requirements involved?
Is there a compensation arrangement that must be revealed?
Understanding the category first helps determine which rule applies.
One of the main disclosure laws affecting Illinois residential sales is the:
Residential Real Property Disclosure Act
The Act generally applies to certain transfers of residential real property and requires the seller to complete the statutory disclosure report unless an exemption applies.
Under the Act, residential real property generally includes:
The Act contains specific definitions and exceptions, so Brokers should not assume every transfer is covered in exactly the same way.
The statutory property disclosure is fundamentally a:
Seller disclosure
The seller completes the required report based on the seller's:
Actual notice or actual knowledge
The seller is not generally required by the Act to conduct a special investigation simply to complete the form.
That distinction is important.
The seller is disclosing what the seller actually knows—not guaranteeing that no other problems exist.
Current Illinois law requires the seller to deliver the applicable Residential Real Property Disclosure Report to the prospective buyer:
Before the signing of a contract
This timing matters.
A disclosure delivered after the contract has already been signed can create additional buyer rights when material defects are disclosed.
Brokers should therefore make property-condition disclosure part of the early transaction process rather than something handled just before closing.
The statutory report asks the seller about known conditions affecting major areas of the residential property.
Topics can include matters involving:
The statutory form should be used rather than creating an informal substitute.
The central purpose of the Residential Real Property Disclosure Report is to provide information concerning:
Material defects
A material defect is not merely a small cosmetic imperfection.
In practical terms, a material defect can involve a condition that has a substantial adverse effect on:
or
The seller should follow the statutory form and disclose material defects of which the seller has actual knowledge.
Illinois law states that the seller must disclose material defects:
Of which the seller has actual knowledge
The seller generally is not obligated under this Act to perform a special investigation to discover defects merely for the purpose of completing the form.
However, a seller should not:
A lack of required investigation is not permission to conceal known information.
The statutory disclosure report does not replace a professional property inspection.
A seller may truthfully state that the seller is unaware of a particular problem while a later inspection identifies one.
The statutory form itself warns buyers that the seller's lack of knowledge is:
Not a guarantee that a condition does not exist
Buyers may still choose to obtain inspections from qualified professionals.
The report provides information based on the seller's actual knowledge.
It is not automatically a warranty that:
This distinction protects the purpose of the disclosure process.
Disclosure informs the buyer.
Inspection and contractual warranties address different issues.
The Illinois statutory disclosure form expressly recognizes that parties may negotiate an:
"As Is"
sale even when defects have been disclosed.
An "As Is" agreement does not automatically erase statutory disclosure obligations.
A seller should not assume:
"The property is being sold As Is, so I do not have to disclose anything."
The disclosure rules and the contractual allocation of repair responsibility are different issues.
The Residential Real Property Disclosure Act contains specific exempt transfers.
Examples include certain:
The exemptions are fact-specific.
Do not assume a transaction is exempt merely because it seems unusual.
The Act currently exempts:
Newly constructed residential real property that has never been occupied
However, the statute specifically states that this exemption does not include:
Rehabilitation of existing residential real property
A renovated older home is therefore not automatically treated the same as newly constructed, never-occupied property.
Disclosure does not necessarily end when the original report is delivered.
If, before closing, the seller becomes aware of:
in a prior disclosure report or supplement, current Illinois law requires the seller to provide a:
Written supplemental disclosure
This continuing responsibility is one reason Brokers should encourage sellers to report important changes rather than assuming the original form can never be updated.
Suppose a seller completes the disclosure report and states that there is no known roof leak.
Before closing, a storm occurs and the seller becomes aware that water is entering through the roof.
The seller should not simply rely on the original form.
The new information may trigger the obligation to provide an appropriate supplemental disclosure before closing.
The transaction file should accurately reflect the updated situation.
If a required disclosure containing a material defect is delivered only after the parties have already signed the contract, Illinois law can give the prospective buyer a limited termination right.
Current law provides a:
5-business-day period after receipt
in certain circumstances involving late disclosure of a material defect.
Because the legal consequences depend on the exact facts, Brokers should avoid casually advising a party to terminate or waive contractual rights.
Refer legal questions to the appropriate attorney.
Illinois law provides remedies when the required disclosure report is not properly provided.
A seller who knowingly violates the Act or knowingly provides false information can face liability for:
The buyer can also have termination rights in circumstances defined by the Act.
Proper disclosure is therefore a substantive legal requirement, not merely transaction paperwork.
The seller's statutory property disclosure does not eliminate a Broker's independent professional obligations.
Illinois Real Estate License Act rules require licensees to treat customers honestly and prohibit them from:
A licensee representing a seller also has a separate duty concerning certain actually known latent material adverse physical facts.
A Broker should not simply say:
"The seller filled out the form, so I have no disclosure responsibilities."
Illinois law requires a licensee engaged by a seller client to timely disclose to prospective buyer customers:
Latent material adverse facts relating to the physical condition of the property
when:
and
This is a separate professional duty under the Real Estate License Act.
A latent defect is generally something that is not readily discoverable through ordinary observation or a reasonably diligent inspection by the consumer.
For example, imagine that a Broker actually knows about a serious hidden structural problem behind finished walls that a buyer would not reasonably discover during an ordinary property viewing.
That can create a different disclosure issue from an obvious cosmetic crack visible to anyone entering the room.
The precise legal analysis depends on the facts.
An agent has duties to promote the client's lawful interests and protect confidential information.
However, confidentiality does not allow a Broker to hide information that must legally be disclosed.
A seller cannot properly instruct a Broker:
"Do not tell the buyer about a known material defect that the law requires you to disclose."
Client directions must remain lawful.
This distinction is critical.
Examples may include:
This information can be protected by agency duties.
Certain known physical conditions may need to be disclosed under applicable law.
A Broker should not use confidentiality as a reason to conceal a legally required physical-property disclosure.
Illinois requires written agency disclosures so consumers understand who the Broker represents.
A licensee acting as a designated agent must advise the consumer in writing of the agency relationship:
No later than beginning to work as the consumer's designated agent
The disclosure should identify:
It can be part of the written brokerage agreement or provided separately.
Illinois requires a sponsoring broker entering into certain brokerage relationships to establish the terms in a:
Written brokerage agreement
This applies to relationships involving activities such as:
The agreement helps document:
Sometimes a Broker works with a consumer whom the Broker does not represent.
Illinois requires the licensee to disclose in writing that the licensee is:
Not acting as the customer's agent
The disclosure should be provided at a time intended to prevent the customer from revealing confidential information.
In any event, current law requires it no later than:
Preparation of an offer to purchase or lease real property
This helps reduce confusion about who the Broker actually represents.
Suppose a listing Broker represents the seller.
An unrepresented buyer contacts that Broker directly.
If the buyer assumes:
"This Broker is my agent too"
the buyer may reveal sensitive negotiating information.
A timely no-agency disclosure helps make clear that the Broker's agency duties are owed to someone else.
Dual agency occurs when one individual licensee represents both sides of the same transaction, such as:
or
Illinois permits dual agency only with:
Informed written consent of all clients
Because one Broker cannot fully advocate one side against the other while simultaneously protecting both clients' confidential information, dual representation requires clear consent.
Prior consent to dual agency is not the only documentation requirement.
When a licensee actually acts as a dual agent in a specific transaction, Illinois requires written confirmation of the clients' prior consent.
That confirmation is generally obtained when the clients execute an:
When included in another document, the applicable dual-agency provision has additional acknowledgment requirements.
Illinois uses designated agency.
For example:
That does not automatically mean one Broker is acting as a dual agent.
Dual agency focuses on the individual licensee representing both sides.
The brokerage must still protect each client's confidential information.
Illinois also addresses situations where one designated agent represents:
Two or more clients making or preparing offers on the same property
When the agent knows or has reason to know that those offers will be considered at the same time, the situation can constitute contemporaneous offers.
The licensee must provide the applicable:
Written disclosure to all affected clients
A client who requests referral to another designated agent must also be handled according to the statutory requirement.
A licensed Broker has additional disclosure responsibilities when the Broker personally has an interest in the property involved in the transaction.
Illinois requires a licensee to disclose in writing:
and
when the licensee is selling, leasing, or purchasing an interest in the real estate involved in the transaction.
Illinois advertising rules permit ownership to be indicated using wording such as:
Broker Owned
or
Agent Owned
in applicable consumer-accessible property information and responses to advertising.
However, Brokers should follow the full statutory and brokerage requirements rather than assuming those two words satisfy every disclosure issue in every circumstance.
The written transaction disclosure requirements remain important.
Compensation is another important disclosure area.
Illinois law currently requires licensees to disclose to clients the sponsoring broker's compensation policy, including:
A licensee must also disclose to the client:
Sources of transaction-related compensation received from third parties
where required by law.
If a licensee refers a client to a third-party service provider in which the licensee has more than a specified ownership interest or receives certain profit-sharing benefits, Illinois law can require that relationship to be disclosed.
Examples of third-party services can include:
Clients should be able to understand when a financial relationship exists behind a referral.
Illinois law also addresses situations in which a sponsoring broker receives compensation from both sides of the same transaction.
For example:
or
Current law requires the applicable written disclosure to the client when compensation is being received from both sides.
Compensation does not itself determine agency, but the arrangement can still require disclosure.
Illinois has a separate:
Radon Awareness Act
For applicable residential real property sales, the seller must provide the buyer with:
This generally must occur:
Before the buyer is obligated under a contract to purchase the residential real property
The Illinois Radon Awareness Act does not, simply by requiring the disclosure, create a general obligation for the seller to perform radon testing or mitigation.
Instead, the disclosure process provides:
Buyers can then decide whether to pursue their own radon testing as part of due diligence.
The statutory radon disclosure requires the seller to address known radon information.
If the seller has relevant records or reports concerning elevated radon concentrations, those records should be handled according to the applicable disclosure requirements.
Brokers should not treat radon information as simply another confidential seller matter.
Illinois radon law also contains disclosure requirements affecting applicable residential leases.
Current rules require lessors in covered situations to provide tenants with applicable:
The law was expanded to address rental situations beginning in 2024.
Brokers involved in leasing should therefore not think of radon only as a home-sale issue.
Federal law creates additional disclosure requirements for many residential properties built:
Before 1978
Before a buyer or tenant becomes bound by the applicable contract or lease, sellers and landlords must generally handle required lead-based paint disclosures.
Requirements can include:
For covered sales of pre-1978 housing, federal rules generally provide buyers with:
Up to 10 days
to conduct a lead-based paint inspection or risk assessment unless the parties agree in writing to a different period or the buyer waives the opportunity as permitted.
This requirement is separate from:
Multiple disclosure systems can apply to the same property.
Federal lead disclosure requirements also apply to many leases involving housing built before 1978.
Landlords and agents should determine whether the federal lead disclosure rules apply before the tenant becomes obligated under the lease.
This can involve:
Do not assume the rule applies only when property ownership is being transferred.
Illinois now has specific flood-disclosure requirements affecting residential rental properties.
Current Illinois landlord-tenant law requires certain written disclosures before lease signing involving:
The disclosure must also be included in the written lease or written renewal lease and signed by the parties where required.
Illinois defines a lower-level unit for this requirement to include:
For applicable lower-level units, landlords must disclose if the unit or the real property containing the unit has experienced flooding during the:
Previous 10 years
and disclose the frequency of the flooding.
This requirement became particularly important for Illinois rental transactions beginning in 2025.
A Broker assisting a landlord should not assume that a standard lease automatically satisfies every new disclosure requirement.
Before lease execution, check:
Use the current Illinois statutory form and brokerage procedures where applicable.
Some information may concern a property's history without affecting its physical condition.
Illinois law states that a licensee is not liable for failing to disclose certain information that does not affect the property's physical condition.
Examples can include:
Illinois administrative rules specifically identify events such as:
within this category when they did not affect the physical condition of the property.
There is an important difference between:
Not having an affirmative duty to disclose certain information
and:
Providing a false statement
Licensees still must treat customers honestly and should not knowingly or negligently provide false information.
If a consumer asks a sensitive question, follow:
Do not improvise a misleading answer.
Illinois license law specifically limits liability for failing to disclose that an occupant was affected by:
These are not treated as physical property conditions in the same way as structural, mechanical, or environmental defects.
Brokers should also be careful about:
when conversations involve a person's health.
A Broker should never misuse the idea of disclosure to communicate discriminatory information.
Examples of information that should not be used to steer consumers include assumptions about:
Housing decisions should be based on legitimate property and transaction information.
Disclosure responsibilities extend beyond formal forms.
Illinois advertising law prohibits advertising that is:
Advertising should communicate information in an:
Accurate, direct and readily understandable manner
A misleading property advertisement can create problems even before a consumer reaches the contract stage.
Suppose a Broker knows that a statement such as:
"Completely dry basement with no water problems"
is false.
The Broker should not publish the claim merely because the seller wants it in the listing.
Advertising, material-fact duties, and professional honesty all need to be considered together.
Illinois state law is not always the only source of disclosure requirements.
Depending on the property location, local governments can impose additional requirements involving areas such as:
Brokers should learn the requirements that apply in the municipalities where they practice.
One property can require several disclosures.
For example, the sale of an older Illinois home could potentially involve:
Do not expect one form to satisfy every disclosure rule.
Suppose a seller lists a two-story Illinois home built in 1995.
Possible disclosure issues can include:
Residential Real Property Disclosure Report.
Agency and designated-agent disclosure.
Radon disclosure requirements.
Possible dual-agency or compensation disclosures depending on the relationship.
Lead-based paint disclosure would generally not arise merely from the home's age because it was built after 1978.
Suppose an Illinois single-family home was built in 1965.
Depending on the facts, the transaction can involve:
The Broker should recognize that the seller's Illinois property report does not replace the federal lead disclosure requirement.
Suppose a Broker is helping lease a garden-level apartment.
Potential issues can include:
Residential leasing therefore involves significant disclosure responsibilities even though no property sale occurs.
The Residential Real Property Disclosure Report is based on:
The seller's actual knowledge
The Broker can explain that the form is required and can help manage the transaction process.
However, the seller should be responsible for the seller's own factual disclosures.
The Broker should not invent answers or tell the seller to conceal known problems.
When a seller needs legal advice about how to answer a difficult item, an attorney may be appropriate.
A Broker may observe a condition without knowing its technical cause.
For example:
A Broker should avoid pretending to be:
Describe known facts accurately and recommend appropriate professional evaluation where needed.
Keep disclosure records organized.
A transaction file may include:
Follow the sponsoring brokerage's recordkeeping procedures.
A form can be accurate but still create a problem if it is delivered too late.
Important timing examples include:
Generally before signing the contract.
Before the buyer is obligated under the purchase contract.
No later than beginning to work as the consumer's designated agent.
Before confidential information is unnecessarily disclosed and no later than preparation of an offer.
In connection with the applicable offer or contract.
Before signing the applicable lease and included in the written lease or renewal.
Always consider both:
What must be disclosed?
and:
When must it be disclosed?
A material defect does not automatically make a property impossible to sell.
After disclosure, parties may decide to:
Disclosure allows the parties to make informed decisions.
It does not make the decision for them.
When you encounter information during a transaction, ask:
Property condition, agency, compensation, environmental, ownership interest, or something else?
Seller, Broker, buyer, landlord, third party?
Do not create your own substitute if an official form is required.
Before contract, before lease, during agency formation, or another point?
Agency confidentiality and disclosure law must be considered together.
If uncertain, involve the designated managing broker or appropriate attorney.
Before a residential listing moves toward contract:
Depending on the property:
Not every item applies to every transaction.
Ask:
Handle the applicable disclosures before they become a transaction dispute.
The statutory seller report generally belongs before contract signing.
These are different concepts.
The seller's report is based on the seller's knowledge.
A seller's agent has separate professional disclosure duties.
Legally required material disclosures are not automatically protected by agency confidentiality.
Illinois has a separate Radon Awareness Act.
Many pre-1978 properties have additional disclosure requirements.
Radon, flood, lead, agency and fair housing issues can arise in leasing.
Licensees have special written disclosure duties when personally involved.
The current Illinois Broker examination content outline places significant emphasis on:
Disclosures
Candidates should understand topics including:
Definitions alone are not enough.
Consider a scenario and ask:
Who has the information?
Who must receive it?
Is there a required form?
When must it be delivered?
Does the Broker represent the recipient?
Is the information confidential or legally required to be disclosed?
This method prepares students for both examinations and professional practice.
Good disclosure practices can help reduce:
A Broker should not think:
"How little can I disclose?"
A better professional question is:
"What does the law require, what does the transaction require, and how can this information be documented accurately?"
Disclosure questions can become complicated quickly.
Involve the designated managing broker when questions arise involving:
New Brokers should use supervision rather than making uncertain legal decisions alone.
Some disclosure questions involve interpretation of legal rights and contractual consequences.
An attorney may be appropriate when a party needs advice concerning:
A Broker should understand disclosure requirements without attempting to replace legal counsel.
A practical transaction framework is:
Identify the Property and Transaction
↓
Determine Which Disclosure Laws Apply
↓
Identify Who Must Complete Each Disclosure
↓
Deliver Required Documents at the Correct Time
↓
Keep Evidence of Delivery
↓
Update Information When Required
↓
Preserve Transaction Records
This process makes disclosure compliance easier to manage.
Disclosure rules connect many major areas of Illinois real estate practice:
Illinois Broker Academy provides educational resources for students and Brokers learning the rules that shape Illinois real estate transactions.
If you want to understand agency relationships:
If you want to understand fair housing:
Illinois Fair Housing for Brokers
If you want broader Illinois license law:
Illinois Real Estate License Law
If you are preparing for the Broker exam:
Illinois Real Estate Broker Exam
If you want the tested disclosure topics:
If you need professional reference material:
It is a statutory seller disclosure form used for covered transfers of Illinois residential real property. It provides prospective buyers with information about material property defects of which the seller has actual knowledge.
Current Illinois law generally requires the seller to deliver the disclosure report to the prospective buyer before the signing of the contract.
The statutory definition generally includes real property improved with one to four residential dwelling units, residential cooperative units, condominium units, and certain manufactured homes treated as real property, subject to statutory exemptions.
No. The Act contains specific exemptions, including certain court-ordered, foreclosure-related, fiduciary, family, governmental, and never-occupied new-construction transfers.
The Act generally requires disclosure of material defects of which the seller has actual knowledge and does not require the seller to make a special investigation solely to complete the report.
No. The statutory form expressly warns that the seller's lack of knowledge about a problem does not guarantee that the problem does not exist.
No. Buyers can still obtain professional inspections. The seller disclosure and a property inspection serve different purposes.
No. The statutory form specifically recognizes that parties may negotiate an As Is sale even when material defects are disclosed. As Is terms do not automatically eliminate statutory disclosure duties.
If the seller becomes aware before closing of an error, inaccuracy, or omission in a prior disclosure report or supplement, current Illinois law requires an appropriate written supplemental disclosure.
When a late disclosure contains a material defect, Illinois law can provide the prospective buyer with a limited termination right, including a five-business-day period in certain circumstances.
The statutory report is based on the seller's actual knowledge. The seller should provide the factual answers. A Broker should not invent responses or conceal known information for the seller.
Yes. Illinois license law requires honesty toward customers and requires a seller's licensee to timely disclose certain actually known latent material adverse physical facts that a prospective buyer could not discover through a reasonably diligent inspection.
In this context, it generally involves an important adverse fact concerning the physical condition of the property that is actually known to the licensee but is not reasonably discoverable through the customer's diligent inspection.
A client cannot lawfully require a Broker to violate applicable disclosure law. A Broker's duty to protect confidential information does not override legally required disclosure duties.
Illinois generally requires a licensee acting as a designated agent to advise the consumer in writing of the agency relationship and identify the designated agent or agents no later than beginning to work as the consumer's designated agent.
A licensee who does not represent a customer must provide written disclosure that the licensee is not acting as that customer's agent at a time designed to prevent unnecessary disclosure of confidential information and no later than preparation of an offer to purchase or lease.
Dual agency requires the informed written consent of all affected clients. The licensee must also obtain the applicable written confirmation of prior consent in the specific transaction.
No. Illinois uses designated agency, so different affiliated licensees can separately represent different clients. Dual agency occurs when the same individual licensee represents both sides under the applicable legal requirements.
The term can apply when the same designated agent represents two or more clients making or preparing offers on the same property and knows or has reason to know that the offers will be considered at the same time. Written disclosure is required to affected clients.
Yes. A licensee selling, leasing, or purchasing a direct or indirect interest in the property involved in the transaction must provide the applicable written disclosure of licensee status and property interest.
Yes. Illinois law requires disclosure of the sponsoring broker's compensation policy to the client and includes additional disclosure requirements involving third-party compensation, certain referral interests, and compensation received from both sides of a transaction.
For applicable residential transactions, the Illinois Radon Awareness Act requires the seller to provide the required radon pamphlet and Disclosure of Information on Radon Hazards before the buyer becomes obligated under the purchase contract.
The Radon Awareness Act's disclosure requirement does not itself create a general obligation for the seller to conduct radon testing or mitigation.
Yes. Current Illinois radon law also contains disclosure requirements for covered residential rental situations.
Federal lead-disclosure rules generally apply to many residential properties built before 1978. Sellers and landlords must provide applicable known information, records, warnings, and educational material before the buyer or tenant becomes bound.
For covered pre-1978 home sales, federal rules generally provide buyers with up to a 10-day opportunity for a lead inspection or risk assessment unless the parties agree otherwise in writing or the buyer waives the opportunity as permitted.
Yes. Current Illinois landlord-tenant law requires certain written flood disclosures for residential rental property, including information concerning FEMA Special Flood Hazard Areas and known flooding where applicable.
For applicable garden-level, basement-level, and first-floor units, the landlord must disclose whether the lower-level unit or the real property has experienced flooding within the previous 10 years and the frequency of flooding.
Illinois rules provide that a licensee is not liable for failing to disclose certain events that had no effect on the physical condition of the property. Administrative rules specifically identify murder and suicide as examples within that category.
No. Illinois licensees must still treat customers honestly and must not knowingly or negligently provide false information.
Illinois license law provides that a licensee is not liable for failing to disclose that an occupant had HIV or another medical condition. Brokers should also consider privacy and fair housing requirements.
Yes. Local requirements can apply in addition to statewide and federal law. Brokers should learn the rules in the municipalities where they practice.
Yes. Maintain the applicable disclosures and evidence of delivery in accordance with brokerage procedures and Illinois recordkeeping requirements.
Yes. Disclosures make up a significant portion of the Illinois-specific Broker examination content outline and include agency, material defects, property disclosure, radon, lead-based paint, compensation, and other state requirements.
Use current Illinois statutes, Illinois Administrative Code, IDFPR guidance, Illinois Emergency Management Agency radon resources, federal EPA and HUD lead-disclosure guidance, and applicable local requirements.