Illinois Disclosures topic guide
Illinois mine subsidence disclosure for the real estate exam
A mine map, a crack and an insurance payment answer different questions. For Illinois mine-subsidence disclosure, identify the covered transfer and the payment to the transferor. Then check who receives the writing and when it must become part of the agreement.
Last reviewed:
The Illinois paid-claim disclosure rule
Under 765 ILCS 95, a transferor in a covered transfer must disclose in writing all mine-subsidence insurance claims paid to that transferor for the property. The transferee and lender receive the disclosure when the transfer agreement is made. If the agreement is written, the disclosure must be part of it. A waiver of disclosure or its timing requires a writing signed by the transferee and lender.
The June 24, 2026 PSI broker outline lists mine subsidence in Illinois IV.E.3. The whole Disclosures area is 25% of the 40 scored state questions; there is no separate published mine-subsidence quota. This guide reviews the statute and related distinctions as of October 28, 2026. Its original questions are teaching examples, not PSI items or a validated readiness test.
Check the transfer, payment and required disclosure
- Classify the transaction under the Act. Check the deed, mortgage, lease or land-trust category and any stated exclusion before applying section 3.
- Identify the statutory transferor, transferee and lender. A mortgagee may also be a lender; the roles do not require three unrelated people. For a transfer by an Illinois land-trust trustee, the Act names the beneficial-interest owner as the transferor.
- Ask whether an insurance claim for mine subsidence on this property was paid to this transferor. A map, a pending claim and a payment to a prior owner are different facts.
- Disclose all qualifying paid claims in writing to the transferee and lender when the agreement to transfer is made. Make the disclosure part of a written agreement.
- If a waiver is proposed, check the writing and the transferee-and-lender signatures. An insured's policy-coverage rejection is a different waiver.
- Check the other duties separately. A covered residential seller report addresses actual awareness of listed conditions. A seller-engaged licensee has a specific duty concerning actually known latent material adverse physical facts that a prospective-buyer customer could not discover by reasonably diligent inspection. Neither a claim form nor a map replaces that analysis.
| Check | Statutory requirement | Avoid this shortcut |
|---|---|---|
| Claim | All insurance claims paid to the transferor for mine subsidence on the property | A nearby mine or unpaid claim is not the same payment fact |
| Recipients | Transferee and lender | Sending only to a buyer can omit a required recipient |
| Timing | When the agreement to transfer is made | Do not assume closing or recording is the deadline |
| Written agreement | Disclosure must be part of it | A separate email is not automatically contractual incorporation |
| Waiver | Writing signed by transferee and lender | Not merely the seller's statement or insured's coverage rejection |
| Lease category | Term exceeds 40 years counting all exercisable options | Exactly 40 years does not exceed 40 |
| Beneficial-interest assignment | More than 25%, including transfer of the power of direction | A collateral assignment is a separate category without that stated threshold |
| Remedy | Each named recipient may recover qualifying actual damages | Five years describes when damages are incurred after transfer, not a universal filing clock |
Keep the transfer, hazard and insurance questions separate
| Distinction | How it works | What to notice |
|---|---|---|
| Undermined land and statutory mine subsidence | Undermined means a man-made underground mine exists below all or part of the property. Under this Act, mine subsidence requires lateral or vertical movement that directly damages a structure and results from collapse of a man-made underground mine. | A mine location alone does not establish the Act's cause-and-damage definition. |
| Mine movement and excluded causes | The statutory definition excludes movement caused by earthquakes, landslides, volcanic eruption, listed soil and compaction conditions, construction defects, roots, and collapse of storm or sewer drains or rapid-transit tunnels. | A visible crack does not identify its cause. A limestone mine is not excluded merely because it is not a coal mine. |
| Paid claim and pending claim | Section 3 concerns insurance claims paid to the transferor for this property. A pending, denied or withdrawn claim is not the same as a paid claim. | Other known physical facts and duties can still matter even when that payment fact is absent. |
| Current transferor and prior owner | A payment to a prior owner is not automatically a payment to the current transferor. Repairs do not erase a claim paid to the current transferor. | Identify who actually received the payment rather than asking only whether a crack remains. |
| Transfer categories and exclusions | Included transfers cover conveyances of interests, leases exceeding 40 years with all exercisable options, assignments of more than 25% of an Illinois land-trust beneficial interest, mortgages, and separately listed collateral assignments. Exclusions include the specified corrective documents, tax deeds, releases, partition deeds, foreclosure conveyances, easements, and mineral, oil or gas interests. | A confirming, correcting, modifying or supplemental deed or trust document must concern a previously recorded instrument and involve no additional consideration to fit that exclusion. The label alone is not enough. |
| Disclosure waiver and insurance waiver | The disclosure or timing waiver needs the transferee and lender's signatures in writing. Rejection of insurance coverage is made by the insured under separate insurance rules. | The signatures and legal purpose differ; neither document automatically substitutes for the other. |
| Section 3 and the residential seller report | Section 3 concerns paid claims in the defined transfers, including transactions beyond home sales. The separate residential report addresses actual awareness of specified conditions in covered, nonexempt residential sales and is due before contract signing. | The report includes mine subsidence, underground pits, settlement, sliding, upheaval and other earth-stability defects. It is not a warranty or a substitute for inspection. |
| Maps and a site conclusion | Mine maps can support investigation, but their completeness and accuracy vary. Older undocumented workings may not appear. | A mapped mine does not prove payment or inevitable damage; a blank map is not a site-specific clearance. |
| AMLRD, insurer and Fund | IDNR's Abandoned Mined Lands Reclamation Division evaluates mine-related hazardous conditions. The insurer handles the insured's claim; the Fund provides reinsurance and technical support. | A safety investigation, a claim investigation, a coverage decision and a legal disclosure are separate tasks. Do not promise an insurer payment, engineering result or future movement date. |
| Disclosure liability and an automatic award | Section 4 addresses failure to make the required disclosures or a knowingly false disclosure. The transferee and lender may each recover actual damages incurred within five years after transfer. | Liability and actual loss must be established; the statute does not state a flat automatic award. |
| A known defect and a required new investigation | The residential disclosure statute requires actual-knowledge disclosure and does not itself require a specific investigation to complete the report. That does not permit ignoring facts already known or a preclosing report error later discovered. | A written supplement is required when the seller becomes aware before closing of an error, inaccuracy or omission in a previously delivered report or supplement. |
| October 2026 and January 2027 insurance rules | P.A. 104-519's insurance amendments take effect January 1, 2027. The no-deductible-or-retention provision applies to policies issued or renewed on or after that date. | Do not present that future provision as an October 2026 rule or assume every older policy changes immediately. |
Apply the statute to the file
The seller received a partial payment
For a covered transfer, an insurer has paid the transferor an advance on a mine-subsidence insurance claim for the property. Final repair costs remain disputed. The transferor says disclosure can wait until the claim closes.
- The scenario states that the transferor has already received a claim payment. It is not merely a pending unpaid claim.
- Section 3 does not say to wait for the last repair, final settlement or closing.
- Describe the payment and open claim accurately; do not turn an advance into a claim that all loss was finally settled.
Answer: Include the paid claim in the required written disclosure at agreement time; the open adjustment is a separate issue.
The map shows a mine but no claim exists
IDNR mapping suggests an old coal mine lies below part of the parcel. The transferor has never made or received payment on a mine-subsidence claim.
- The mine-location fact may support due diligence and may affect other disclosures if known conditions exist.
- It does not equal an insurance claim paid to the transferor, which is the precise Section 3 content trigger.
Answer: Do not invent a paid claim. Investigate the map and known condition through the applicable separate duties; the map does not establish section 3's payment fact.
The buyer received notice but the lender did not
A seller attaches the paid-claim statement to a separate buyer email. A mortgage lender finances the purchase but never receives the disclosure.
- Section 3 names both the transferee and lender.
- A buyer-only email also raises whether the disclosure became part of the written transfer agreement.
Answer: The file does not establish compliance. The lender must receive the disclosure, and it must be part of a written transfer agreement. A separate buyer email alone does not establish either requirement.
A 35-year lease has a 10-year option
The parties sign a 35-year lease with an option that could extend the term by 10 more years.
- Count all options that may be exercised: 35 + 10 = 45 years.
- Forty-five exceeds 40, so the lease fits that transfer category.
- A covered category does not itself prove a claim was paid; check that fact separately.
Answer: Treat the lease as a statutory transfer and analyze any paid-claim disclosure.
A buyer alone signs a waiver
The financed buyer signs a contract line waiving mine-subsidence disclosure, but the lender does not sign.
- The Act requires a disclosure or timing waiver to be written.
- It also requires signatures from the transferee and lender.
Answer: The buyer-only writing does not satisfy the stated transferee-and-lender waiver requirement. Do not treat the seller's or broker's consent as a substitute.
The seller report says no after a paid claim
A residential seller received a mine-subsidence payment and also marks no on the general seller report's earth-stability item.
- The paid-claim disclosure and the residential report answer different statutory questions. The payment still needs its own disclosure.
- Check the seller's actual knowledge and the report's exact earth-stability statement. If the seller becomes aware before closing of a report error, the separate written-supplement rule applies.
- Licensees must treat customers honestly and must not negligently or knowingly give false information. Under section 15-25, the client-provided-information protection requires the licensee to lack actual knowledge of falsity; it is not permission to repeat a known false answer.
Answer: Do not let one form conceal the other. Escalate the inconsistency, make the paid-claim disclosure, and follow the separate seller-report and licensee duties.
Exactly 25% and a collateral assignment
One document makes an ordinary assignment of exactly 25% of an Illinois land-trust beneficial interest. A second transaction makes a collateral assignment of a beneficial interest. Assume neither has another stated basis for exclusion or inclusion.
- The ordinary assignment does not exceed 25%, so it does not meet section 2(d)(3)'s percentage condition.
- The collateral assignment is separately listed in section 2(d)(5), which does not state that percentage threshold.
- After identifying a covered transfer, still check whether a claim was paid to the statutory transferor and whether any waiver meets section 3.
Answer: Do not apply the ordinary assignment's more-than-25% condition to the separate collateral-assignment category.
A future insurance provision is not today's policy rule
In October 2026, a student reads the after-amendment version of section 805.1 and concludes that every existing policy already has no mine-subsidence deductible.
- The amendment's source note gives a January 1, 2027 effective date.
- The no-deductible-or-retention text concerns policies issued or renewed on or after January 1, 2027.
- The policy, coverage date and applicable current rules must still be checked. That insurance question does not change section 3's paid-claim disclosure or waiver signers.
Answer: The conclusion is too broad and premature. Do not apply the future policy-date rule as an October 2026 entitlement.
Shortcuts that miss the statutory condition
- A known mine and a claim payment are the same fact. Check payment to the transferor for this property separately from maps, reports and physical conditions.
- Only the newest or largest paid claim matters. Section 3 says all qualifying claims, without that restriction.
- A written buyer email completes every requirement. Check the lender, agreement-time delivery and incorporation into the written agreement.
- Every land-trust transaction uses the same 25% test. The ordinary beneficial-interest assignment and collateral assignment are separate categories.
- A five-year phrase guarantees an award. Section 4 concerns actual damages and the required liability facts; it is not a fixed automatic payment.
- The broker can identify the cause of every crack. Handle known facts and records, and use qualified technical and legal help for conclusions beyond the broker's role.
- Exactly 40 years exceeds 40, or exactly 25% is more than 25%. The statutory comparisons are strict. Count all exercisable lease options and keep the collateral-assignment category separate.
- No paid claim means no other duty. Residential-report, licensee, contract and other-law duties address different facts.
- Every future insurance amendment is already effective. Read the effective date and policy issue-or-renewal condition before applying it.
Check the facts that change the answer
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. For a covered transfer, what claim information does section 3 expressly require?
- Only unpaid claims
- Only claims for damage still visible
- Only payments within the last year
- All mine-subsidence insurance claims paid to the transferor for the property
Show answer and explanation
Answer: D. All mine-subsidence insurance claims paid to the transferor for the property
The statute uses all qualifying claims paid to the transferor for the real property. It does not limit them to the last year, unresolved repairs or currently visible damage. Unpaid claims and other known physical facts require separate analysis.
2. In a financed covered transfer, who are the named disclosure recipients?
- Transferee and lender
- Buyer and seller only
- Broker and insurer only
- Recorder and title examiner only
Show answer and explanation
Answer: A. Transferee and lender
Section 3 names the transferee and lender. These are statutory roles, not an instruction to send the disclosure only to the listing broker, insurer or recorder. A lender can also have a transferee role in a mortgage transaction.
3. Which stated lease meets the Act's lease-transfer threshold?
- 35 years plus an exercisable 10-year option
- 35 years with no option
- 30 years plus one exercisable 10-year option
- Exactly 40 years with no option
Show answer and explanation
Answer: A. 35 years plus an exercisable 10-year option
The final choice totals 45 years when the exercisable option is counted, so it exceeds 40. The first two reach exactly 40 and do not exceed it. Inclusion in a transfer category still does not prove a qualifying paid claim exists.
4. A financed transferee and lender seek to waive the disclosure timing requirement. What does section 3(c) require?
- A writing signed by the transferee and lender
- Only the insured's policy rejection form
- An oral instruction to the closing agent
- Only the transferor's signature
Show answer and explanation
Answer: A. A writing signed by the transferee and lender
The section requires writing and both named recipient signatures. A timing waiver is expressly covered. Neither a transferor-only document nor an insurance-coverage waiver supplies that specified combination.
5. Which stated cause is excluded from the Act's mine-subsidence definition?
- Collapse of a limestone mine directly damaging a structure
- Collapse of a clay mine directly damaging a structure
- Improperly compacted soil
- Collapse of a coal mine directly damaging a structure
Show answer and explanation
Answer: C. Improperly compacted soil
Improperly compacted soil is an express excluded cause. The named mine examples are not confined to coal; qualifying lateral or vertical movement, direct structural damage and mine collapse must still be established.
6. When is the section 3 disclosure ordinarily due?
- Only after the claim closes
- When the agreement to transfer is made
- Only when the buyer requests it
- Only when the deed records
Show answer and explanation
Answer: B. When the agreement to transfer is made
The trigger is the making of the transfer agreement. If that agreement is written, the disclosure must be part of it. A qualifying written waiver may alter the disclosure or its timing; without one, do not move the duty to closing or recording.
7. The covered agreement is written. A seller sends a separate email that was not incorporated into it. What remains unresolved?
- Whether the statute requires only oral disclosure
- Whether an insurer can receive email
- Whether the disclosure became part of the written agreement
- Whether any writing can ever be used
Show answer and explanation
Answer: C. Whether the disclosure became part of the written agreement
Section 3(b) requires the disclosure to be part of the written agreement. The stated separate email does not by itself establish incorporation. Written form, recipients and timing must all be considered rather than treating an email alone as complete compliance.
8. A current transferor has received no claim payment, but knows a prior owner received one. What follows from section 3's exact wording?
- The buyer must waive all defects
- Every prior-owner payment becomes a payment to the current transferor
- The current transferor's paid-claim fact is not established; other duties remain separate
- No other duty can ever apply
Show answer and explanation
Answer: C. The current transferor's paid-claim fact is not established; other duties remain separate
The section says paid to the transferor. A payment to a different prior owner does not automatically meet that fact. Known subsidence, received reports, seller-report duties and other applicable law must still be analyzed; absence of this trigger is not permission to conceal relevant facts.
9. Which beneficial-interest assignment meets section 2(d)(3)'s percentage condition, assuming the stated interest and transaction otherwise qualify?
- 20%
- Exactly 25%
- More than 25%
- Any percentage solely because a trust is involved
Show answer and explanation
Answer: C. More than 25%
The category uses more than 25% and includes transfer of the power of direction. Exactly 25% is not more than 25. A collateral assignment is separately listed, so this percentage must not be imported into every land-trust event.
10. Which separately listed transfer category does not state a greater-than-25% threshold?
- A collateral assignment of a beneficial interest in an Illinois land trust
- An ordinary assignment under section 2(d)(3) at exactly 25%
- Every easement
- Every one-year lease
Show answer and explanation
Answer: A. A collateral assignment of a beneficial interest in an Illinois land trust
Section 2(d)(5) separately lists the collateral assignment. The more-than-25% condition belongs to section 2(d)(3), not every collateral assignment. Ordinary short leases and easements do not become included through that percentage rule.
11. Which stated corrective document fits the listed exclusion?
- A new sale deed supported by a new purchase price
- Every deed labelled corrective regardless of consideration
- A document that only corrects a previously recorded deed without additional consideration
- Every trust transaction regardless of its substance
Show answer and explanation
Answer: C. A document that only corrects a previously recorded deed without additional consideration
The exclusion retains both the previously recorded instrument and no-additional-consideration conditions, with the stated confirming, correcting, modifying or supplementing function. A label alone does not establish those facts, and there is no blanket exclusion for all trusts.
12. A map shows an old mine but no insurance payment to the transferor. What does that map prove for section 3?
- That insurance is unnecessary
- That the property will inevitably suffer damage
- It does not establish the required payment fact
- That a paid claim necessarily exists
Show answer and explanation
Answer: C. It does not establish the required payment fact
Mine location and paid claims are different facts. The map may justify further investigation, but it proves neither a payment nor a guaranteed future outcome. Maps also have accuracy and completeness limits.
13. Does an insured's written rejection of mine-subsidence insurance automatically waive the transfer disclosure?
- No; the purposes and required signers differ
- Only if the broker keeps a copy
- Yes, because both papers use the word waiver
- Yes, whenever the seller signs it
Show answer and explanation
Answer: A. No; the purposes and required signers differ
The section 3 waiver requires writing signed by the transferee and lender. The insured's insurance decision concerns coverage under separate rules. Keeping a policy rejection in the file does not substitute for the transaction-disclosure waiver.
14. What does section 4 expressly describe?
- A universal five-year filing rule for every related claim
- Possible recovery by each named recipient of actual damages incurred within five years after transfer
- An automatic five-year cancellation right
- A fixed award for every late document
Show answer and explanation
Answer: B. Possible recovery by each named recipient of actual damages incurred within five years after transfer
The section describes actual damages and when they are incurred, following failure to make the required disclosure or a knowingly false disclosure. It does not state the invented automatic awards, cancellation right or universal filing rule in the other choices. Other claims and deadlines require separate analysis.
15. Which transaction is expressly included in the transfer definition, rather than excluded merely because no sale deed is being delivered?
- A deed releasing secured property
- A tax deed
- An easement alone
- A mortgage of real property
Show answer and explanation
Answer: D. A mortgage of real property
Section 2(d)(4) expressly includes a mortgage. The other stated categories appear in the exclusion list. A mortgagee can be a transferee, while the person advancing secured funds can be a lender; identify each role and any qualifying paid claim.
16. An Illinois land-trust trustee transfers the property. Under the Act's transferor definition, who is named for that trustee transfer?
- Only the insurance adjuster
- The owner of the beneficial interest in the land trust
- Only the prospective lender
- Only the county recorder
Show answer and explanation
Answer: B. The owner of the beneficial interest in the land trust
Section 2(f) names the beneficial-interest owner in the case of a transfer by the trustee. Do not assume the trustee alone replaces that expressly defined transferor. The disclosure still concerns claims paid to the statutory transferor for the property.
17. A covered transferor received two qualifying paid claims and repaired both areas. What does section 3 require?
- Only the most recent unrepaired claim
- Both qualifying paid claims in the required written disclosure
- Only the larger claim
- Neither, because repairs erase every disclosure duty
Show answer and explanation
Answer: B. Both qualifying paid claims in the required written disclosure
The statute says all claims paid to the transferor for mine subsidence on the property. Repairing the areas does not remove that historical payment fact. Describe repairs and claim status accurately rather than concealing either payment.
18. In a covered, nonexempt residential sale, the seller has an engineer's report confirming mine subsidence but has received no insurance payment. Which distinction is correct?
- The map alone has paid the claim
- The seller-report actual-knowledge issue remains even though section 3's paid-claim fact is absent
- No disclosure analysis is needed because the claim was unpaid
- Every seller-report answer is automatically a warranty
Show answer and explanation
Answer: B. The seller-report actual-knowledge issue remains even though section 3's paid-claim fact is absent
The report duty addresses actual awareness of listed conditions in the covered sale. A known confirming report cannot be dismissed merely because no payment was received. Section 3's exact paid-claim fact and other duties must be analyzed separately; the residential report is not a warranty.
19. A seller-engaged licensee actually knows a latent material adverse physical fact about subsidence that a prospective-buyer customer could not discover by reasonably diligent inspection. What does section 15-25 require?
- Disclose only if an insurer has paid
- Timely disclosure to that prospective-buyer customer
- Withhold it whenever the seller asks
- State that every visible crack is proven mine collapse
Show answer and explanation
Answer: B. Timely disclosure to that prospective-buyer customer
The question supplies the specific seller-client, buyer-customer, actual-knowledge, latent, material, adverse, physical and inspection conditions of the duty. No insurer-payment condition is added. The required disclosure of the known fact does not authorize an unsupported diagnosis of every crack.
20. Which fact distinguishes the Act's mine-subsidence definition from merely undermined land?
- Qualifying movement directly damages a structure and results from collapse of a man-made underground mine
- Every soil settlement is deemed mine collapse
- Any mine exists anywhere in the county
- Any wall crack exists without an identified cause
Show answer and explanation
Answer: A. Qualifying movement directly damages a structure and results from collapse of a man-made underground mine
The definition requires the movement, direct structural damage and mine-collapse cause together. Undermined land means a mine exists below all or part of the property. Listed nonmine causes are excluded, and a broker cannot establish the cause from a crack alone.
21. What does P.A. 104-519's no-deductible-or-retention provision mean for an October 2026 question?
- The future provision erases earlier paid claims
- Its January 1, 2027 policy issue-or-renewal condition must not be treated as a current October 2026 rule
- Every existing policy already has no deductible
- The transferor and transferee alone can waive section 3
Show answer and explanation
Answer: B. Its January 1, 2027 policy issue-or-renewal condition must not be treated as a current October 2026 rule
The future insurance text applies to policies issued or renewed on or after January 1, 2027. It does not establish the claimed current entitlement for every older policy or rewrite the separate paid-claim disclosure and transferee-and-lender waiver rules.
22. Before closing, a covered residential seller becomes aware that a previously delivered disclosure report contains an error about earth stability. What is the separate section 30 requirement?
- Erase the first report without telling the buyer
- Treat a buyer inspection as an automatic waiver
- Wait for the insurer to pay before doing anything
- Provide a written supplemental disclosure by an authorized section 50 method
Show answer and explanation
Answer: D. Provide a written supplemental disclosure by an authorized section 50 method
Awareness before closing of an error, inaccuracy or omission in a previously delivered report or supplement triggers the written-supplement duty. It is separate from section 3's paid-claim requirement. No insurer payment or inspection waiver is substituted for the specified supplement.
Common questions
What must be disclosed about Illinois mine subsidence?
For a covered transfer, section 3 requires written disclosure of all insurance claims paid to the transferor for mine subsidence on the property. A nearby mine, suspected crack or unpaid claim is a different fact, and other duties can still apply.
Who receives the disclosure and when?
The transferee and lender receive it when the transfer agreement is made. If that agreement is written, the disclosure must be part of it. Do not assume a closing-day statement or recording-day delivery satisfies those requirements.
Does this law apply only to residential sales?
No. The Act defines transfers to include more than ordinary home sales, including mortgages, specified long leases and land-trust events. Analyze the actual statutory category and exclusions. The residential seller report has different coverage.
How do options affect the 40-year lease threshold?
Count all options that may be exercised. A 35-year lease plus an exercisable 10-year option totals 45 years and exceeds 40. A 30-year lease plus one exercisable 10-year option reaches exactly 40 and does not meet that particular threshold.
Is exactly 25% enough for a land-trust beneficial-interest assignment?
No, not for section 2(d)(3), which requires more than 25%, including transfer of the power of direction. A collateral assignment is separately listed under section 2(d)(5), without that stated percentage condition.
Can the parties waive disclosure?
Section 3(c) permits a waiver of disclosure or its timing in writing signed by the transferee and lender. Do not replace those signers with the transferor and transferee or treat an oral statement as sufficient. A proposed transaction-specific waiver needs appropriate legal review.
Does repairing the damage erase a paid claim?
No. Section 3 asks about all qualifying claims paid to the transferor, not only unresolved claims or damage visible today. Describe the claim and repairs accurately; repairs are not a substitute for disclosure.
Does the seller report replace the mine disclosure?
No. The separate report addresses actual awareness of specified conditions in covered, nonexempt residential transactions. The mine statute focuses on paid claims, names the lender and uses agreement-time disclosure. Both can apply.
In a covered residential sale, complete and deliver the seller report before contract signing. It addresses actual knowledge and does not itself require a specific investigation to complete it, but known information cannot simply be ignored. A seller who becomes aware before closing of an error, inaccuracy or omission in an earlier report or supplement must provide the required written supplement.
Does the absence of a mapped mine prove the property is safe?
No. Available maps vary in accuracy and completeness, especially for older undocumented mines. They support investigation rather than a site-specific assurance. A mapped mine likewise does not establish a claim payment or inevitable structural damage.
Does the insurance Fund insure the homeowner directly?
IDNR describes the Fund as a reinsurer providing technical support to insurers. The homeowner's insurance company handles the insured's policy and claim. IDNR's AMLRD has a separate role in hazardous-condition investigation.
Is five years the filing deadline for every subsidence claim?
Section 4 says actual damages incurred within five years after transfer. That wording should not be converted into a universal filing or discovery deadline for every related claim. A particular claim, remedy and deadline need separate legal analysis.
Are these official PSI questions or a substitute for education?
No. These are original exam-preparation questions. The optional Pass Illinois app has free Property Ownership practice; full access is paid. It does not provide approved pre-license education or a guaranteed exam result.
Are all cracks or settlement mine subsidence under this Act?
No. Section 2(c) requires lateral or vertical movement directly damaging a structure and resulting from collapse of a man-made underground mine. It expressly excludes listed nonmine causes such as improperly compacted soil, construction defects and roots. Technical guidance can discuss ground movement more broadly; that does not change this statutory definition.
Which transfers are excluded?
The statute lists qualifying corrective deeds or trust documents without additional consideration, tax deeds, releases of secured property, partition deeds, foreclosure conveyances, easements, and mineral, oil or gas interests. Read each stated category and its conditions. A deed merely labelled corrective, a short sale or a trust transaction is not automatically exempt.
Must the disclosure be recorded with the county?
Section 3 requires writing to the transferee and lender at agreement time and incorporation into a written agreement. It does not itself add a separate county-recording requirement for this disclosure. Recording duties for the transfer instrument, loan documents or other laws remain separate.
What should a broker do with known subsidence information?
Identify the actual claim, report and physical facts, and avoid negligent or knowing false information. A seller-engaged licensee must timely disclose actually known latent material adverse physical facts to a prospective-buyer customer when they could not be discovered by reasonably diligent inspection. A geological diagnosis, repair assurance, policy decision or legal waiver calls for the appropriate qualified professional.
How is mine-subsidence insurance different from the disclosure?
Insurance concerns covered loss, policy terms and claims handling. The Fund's current guidance describes automatic inclusion in 34 designated counties unless rejected in writing by the insured, with coverage available on request elsewhere. County status is not proof of damage or a paid claim. Ask the insurer to check the particular policy; the insured's coverage rejection does not replace a section 3 waiver signed by the transferee and lender.
Do the January 2027 insurance changes apply in October 2026?
P.A. 104-519 takes effect January 1, 2027. Its no-deductible-or-retention provision concerns policies issued or renewed on or after that date. Do not treat it as a current October 2026 rule for every existing policy. The separate Mine Subsidence Disclosure Act duties still require their own analysis.
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Official sources and scope
Reviewed October 28, 2026. The disclosure statute, residential report and insurance provisions address different duties. Sources identify the actual provisions and guidance used; earlier primary readings are reused within their recorded scope. Future January 2027 insurance amendments are kept separate from current October 2026 requirements.
- PSI June 24, 2026: Illinois IV Disclosures, broker 10 of 40
- 765 ILCS 95: Mine Subsidence Disclosure Act, definitions and duties
- 765 ILCS 95/3: written disclosure, agreement and waiver
- 765 ILCS 77/35: current report, definitions and 24 statements
- 765 ILCS 77/5: covered property and seller definitions
- 765 ILCS 77/20: complete report before contract signing
- 765 ILCS 77/25: actual knowledge and qualified seller protection
- 765 ILCS 77/45: other law and remedies preserved
- 765 ILCS 77/30: written preclosing supplement
- 225 ILCS 454/15-25: the specific seller-licensee customer duty
- 215 ILCS 5/805.1: insurance coverage and January 2027 amendment
- Illinois Department of Insurance: mine-subsidence insurance definition
- Illinois DNR: mine subsidence, safety review and insurance roles
- Illinois Mine Subsidence Insurance Fund: maps and coverage questions
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.