When a seller fails to disclose problems with a property, buyers may be able to hold the seller legally responsible. If you are a buyer, you might be able to pursue compensation for repairs, health risks, and other damages. This is especially important in Chicago, where older homes often come with hidden issues such as basement flooding and outdated wiring. Document the issues, and get in touch with a real estate lawyer as soon as possible.
Call The Rogoff Law Group at (847) 768-2194 for guidance on your next steps in Chicago or Des Plaines.
What Are Seller Disclosure Requirements?
In Illinois, the Residential Real Property Disclosure Act, also called the Property Disclosure Act, requires sellers to provide a written disclosure listing known property defects. This is particularly important since many homes, new and old, come with various challenges. Sellers should disclose issues such as:
- Basement flooding or seepage, a frequent issue due to heavy rains and older sewer systems
- Roof leaks and ice damming, which are common due to harsh winters
- Lead paint or asbestos, often in older homes
- Outdated electrical wiring
- Mold or radon
- Pest infestations, including termites or rodents
In newer homes, poor workmanship or rushed development can lead to uneven foundations, improper insulation, or faulty HVAC systems. Some new builds also face drainage problems, water intrusion from poorly sealed windows or siding, and roof failures due to substandard materials. Brand-new properties can have hidden defects if the builder cut corners or skipped inspections.
The point of disclosure is simple: to give buyers a fair understanding of the property’s condition before they close on the property. However, sometimes agents or sellers minimize defects to keep a deal intact. These conflicts of interests can leave buyers vulnerable, especially if they are first-time buyers or buyers unfamiliar with Chicago’s older housing market.
Legal Options if a Seller Fails to Disclose Problems
You have legal avenues to explore, even if you discover problems after closing.
Breach of Contract
The disclosure form is part of the purchase agreement. If the seller lied or omitted a defect, this behavior may amount to breach of contract.
Fraudulent Misrepresentation
If a seller knowingly concealed a defect, such as painted over water stains in a basement that frequently floods, you may have grounds to sue for fraudulent misrepresentation.
Rescission of the Contract
In rare but serious cases, courts may allow you to rescind the sale. This option is usually for problems that make the property unsafe or uninhabitable.
Monetary Damages
Buyers may seek financial compensation for repair costs, lost property value, and related expenses. For example, if a buyer discovered a hidden roof leak that damaged the home, he or she could seek compensation for repairs.
Multi-unit buildings and condo associations are common in Chicago. Parties other than the seller may be responsible for common legal issues. If real estate agents, brokers, or inspectors were aware of the issue but failed to disclose it, they could also face liability.
Steps to Take if a Seller Doesn’t Disclose Issues in Chicago
Through August 2025, the typical home value in Chicago was $311,033, with a median of 15 days for a home to go from listed to pending. Obviously, newly discovered defects in a property can stall a sale. Here are common steps to take, whether you found the issue before or after closing.
Review Disclosure Forms
Compare the seller’s signed disclosure form with the problem. If the seller checked “No” for the issue, that could be evidence of misrepresentation.
Document the Issues
Take photos, keep repair estimates, and collect proof that the issue existed before closing. Water damage in a basement or an outdated electrical panel indicates long-term neglect.
Work with Professionals
Hire an independent inspector to confirm the defect existed before your purchase. Inspectors familiar with local housing quirks, such as clay sewer lines, can provide important insight.
A real estate lawyer is a good person to consult. They should know how the Property Disclosure Act applies in Cook County courts, how to gather evidence, and when mediation may be more effective than litigation. Lawyers can also advise on city code violations and disputes with condo associations.
Try Resolution with the Seller
Sometimes, a demand letter from your lawyer is enough to get the seller to settle. Otherwise, your lawyer may recommend trying mediation or filing a lawsuit.
The Rogoff Law Group has extensive experience with property defects in Chicago and Des Plaines. Contact us today.
FAQs About When a Seller Fails to Disclose Problems
What if a Chicago Seller Truly Did Not Know About the Defect?
The seller may not be liable under the Property Disclosure Act. However, buyers may still have recourse against inspectors, contractors, or condo associations if they failed to reveal known defects.
How Long Do I Have to File a Claim if a Seller Fails to Disclose Problems?
Illinois law generally gives buyers up to two years from the date they knew or should have known about the defect. Act as quickly as possible, since evidence such as water damage can be harder to prove over time.
How Does a Defect Become Known?
A defect becomes “known” when the seller or other liable party has actual knowledge of it. This can come from personal experience, such as repeated basement flooding, repair work or contractor reports, city code violation notices, visible or obvious conditions, or communications from a condo board or homeowners association. Even if sellers claim they forgot or did not realize the severity, courts often look at repair invoices, inspection reports, and official notices to determine whether the seller reasonably should have known about the issue.
