Property Disclosures topic guide

Seller property condition disclosure

Disclosure questions reward careful role separation. The seller reports actual knowledge, the buyer investigates, the inspector evaluates components, and the broker communicates known material facts without pretending to be the seller or inspector.

Last updated: August 1, 2026

What does this exam area cover?

Short answer: For a covered Illinois residential transfer, the seller completes and delivers the statutory report before contract signing, discloses material defects actually known, and supplements known errors or omissions before closing. The form does not require a special investigation, excuse concealment, guarantee condition, replace inspections, or erase separate duties owed by licensees and other professionals.

Official section: National VII.A.1: Seller's Property Condition Disclosure Requirements
Broker weight: 7% of the national broker portion
Expected scored items: Property Disclosures accounts for about 7 of 100 items

Seller Property Condition Disclosure exam weight
Official section	Broker weight	Expected scored items
National VII.A.1: Seller's Property Condition Disclosure Requirements	7% of the national broker portion	Property Disclosures accounts for about 7 of 100 items

The national outline effective June 24, 2026 tests seller property condition disclosure requirements. Illinois candidates should apply that concept through the current Residential Real Property Disclosure Act and the Real Estate License Act. The statutory report, broker disclosure, inspection, environmental notice, contract representation, and warranty are separate layers that can apply to the same property.

What is on the official outline?

Topic: Covered residential real property
What to know: One to four dwelling units, condominium unit, limited common element, cooperative unit, qualifying manufactured home, residential use, mixed use, ground lease, assignment, contract purchaser, beneficiary, owner, transfer for value, and statutory definition
Best exam move: Start with the property and transfer definitions before assuming the statutory report applies.

Topic: Seller and prospective buyer
What to know: Legal owner, equitable owner, land-trust beneficiary, trust beneficiary, estate beneficiary, transfer-on-death beneficiary, contract purchaser, ground lessee, occupancy, management responsibility, prospective buyer, negotiation, offer, and contract
Best exam move: Identify the person the Act treats as seller and whether occupancy or management facts affect that status.

Topic: Covered transfers and exemptions
What to know: Sale, exchange, installment land sale contract, beneficial-interest assignment, lease option, ground lease, court order, fiduciary transfer, foreclosure, deed in lieu, family transfer, government transfer, new construction, relocation, estate, trust, exemption, and burden of classification
Best exam move: Apply the exact exemption instead of turning one exempt form into a blanket no-disclosure rule.

Topic: Report timing and delivery
What to know: Written report, completed items, seller signature, date, prospective buyer, delivery before contract signing, personal delivery, mail, electronic delivery, receipt, late report, supplement, closing, record, and proof
Best exam move: Place delivery on the timeline because timing can control the buyer's statutory remedy.

Topic: Actual knowledge standard
What to know: Known material defect, actual knowledge, no specific investigation, reasonable belief of correction, public agency information, engineer, surveyor, pest-control operator, contractor, error, inaccuracy, omission, concealment, representation, and evidence
Best exam move: Ask what the seller actually knew, when the seller knew it, and what source supported the answer.

Topic: Property systems and conditions
What to know: Structure, foundation, walls, roof, ceilings, floors, windows, doors, basement, crawl space, flooding, plumbing, well, septic, electrical, heating, cooling, fireplace, chimney, appliances, unsafe condition, code issue, boundary, shared feature, and known defect
Best exam move: Read the actual form item and avoid replacing a seller's knowledge with your own diagnosis.

Topic: Material defect
What to know: Physical condition, substantial adverse effect, value, health, safety, useful life, function, latent condition, recurring problem, repair, temporary repair, prior damage, active defect, known cause, specialist report, and buyer decision
Best exam move: Connect the known condition to its significance rather than treating every cosmetic issue as material.

Topic: Supplemental disclosure
What to know: New knowledge, changed condition, prior error, inaccuracy, omission, written supplement, authorized delivery, preclosing event, storm damage, failed system, repair refusal, buyer termination, deadline, and documentation
Best exam move: When facts change before closing, update the report instead of relying on the original signature date.

Topic: Buyer rights and remedies
What to know: Timely report, late report, disclosed material defect, supplemental defect, repairable defect, seller agreement to repair, five-business-day period, termination, earnest money, actual damages, knowing violation, attorney fees, limitation period, contract contingency, waiver, and legal review
Best exam move: Use the exact statutory trigger and deadline instead of assuming every defect automatically cancels the contract.

Topic: Inspections and professional reports
What to know: Home inspector, engineer, land surveyor, structural pest-control operator, contractor, environmental professional, licensed scope, visual examination, inaccessible area, limitation, report, recommendation, further evaluation, repair estimate, warranty, and reliance
Best exam move: Match each technical question to the qualified professional and preserve the inspection contingency.

Topic: Licensee duties and boundaries
What to know: Seller client, buyer customer, known latent material adverse fact, physical condition, reasonably diligent inspection, honesty, disclosure, confidentiality, lawful instruction, sponsoring broker, documentation, statement, unauthorized diagnosis, legal advice, and referral
Best exam move: A broker may need to disclose known facts even though the seller completes the statutory report.

Seller Property Condition Disclosure complete outline
Topic	What to know	Best exam move
Covered residential real property	One to four dwelling units, condominium unit, limited common element, cooperative unit, qualifying manufactured home, residential use, mixed use, ground lease, assignment, contract purchaser, beneficiary, owner, transfer for value, and statutory definition	Start with the property and transfer definitions before assuming the statutory report applies.
Seller and prospective buyer	Legal owner, equitable owner, land-trust beneficiary, trust beneficiary, estate beneficiary, transfer-on-death beneficiary, contract purchaser, ground lessee, occupancy, management responsibility, prospective buyer, negotiation, offer, and contract	Identify the person the Act treats as seller and whether occupancy or management facts affect that status.
Covered transfers and exemptions	Sale, exchange, installment land sale contract, beneficial-interest assignment, lease option, ground lease, court order, fiduciary transfer, foreclosure, deed in lieu, family transfer, government transfer, new construction, relocation, estate, trust, exemption, and burden of classification	Apply the exact exemption instead of turning one exempt form into a blanket no-disclosure rule.
Report timing and delivery	Written report, completed items, seller signature, date, prospective buyer, delivery before contract signing, personal delivery, mail, electronic delivery, receipt, late report, supplement, closing, record, and proof	Place delivery on the timeline because timing can control the buyer's statutory remedy.
Actual knowledge standard	Known material defect, actual knowledge, no specific investigation, reasonable belief of correction, public agency information, engineer, surveyor, pest-control operator, contractor, error, inaccuracy, omission, concealment, representation, and evidence	Ask what the seller actually knew, when the seller knew it, and what source supported the answer.
Property systems and conditions	Structure, foundation, walls, roof, ceilings, floors, windows, doors, basement, crawl space, flooding, plumbing, well, septic, electrical, heating, cooling, fireplace, chimney, appliances, unsafe condition, code issue, boundary, shared feature, and known defect	Read the actual form item and avoid replacing a seller's knowledge with your own diagnosis.
Material defect	Physical condition, substantial adverse effect, value, health, safety, useful life, function, latent condition, recurring problem, repair, temporary repair, prior damage, active defect, known cause, specialist report, and buyer decision	Connect the known condition to its significance rather than treating every cosmetic issue as material.
Supplemental disclosure	New knowledge, changed condition, prior error, inaccuracy, omission, written supplement, authorized delivery, preclosing event, storm damage, failed system, repair refusal, buyer termination, deadline, and documentation	When facts change before closing, update the report instead of relying on the original signature date.
Buyer rights and remedies	Timely report, late report, disclosed material defect, supplemental defect, repairable defect, seller agreement to repair, five-business-day period, termination, earnest money, actual damages, knowing violation, attorney fees, limitation period, contract contingency, waiver, and legal review	Use the exact statutory trigger and deadline instead of assuming every defect automatically cancels the contract.
Inspections and professional reports	Home inspector, engineer, land surveyor, structural pest-control operator, contractor, environmental professional, licensed scope, visual examination, inaccessible area, limitation, report, recommendation, further evaluation, repair estimate, warranty, and reliance	Match each technical question to the qualified professional and preserve the inspection contingency.
Licensee duties and boundaries	Seller client, buyer customer, known latent material adverse fact, physical condition, reasonably diligent inspection, honesty, disclosure, confidentiality, lawful instruction, sponsoring broker, documentation, statement, unauthorized diagnosis, legal advice, and referral	A broker may need to disclose known facts even though the seller completes the statutory report.

Which distinctions produce the most mistakes?

Terms: Disclosure report vs. inspection report
Difference: The seller's report states required information based on actual knowledge. An inspection report records a licensed inspector's examination within the inspection scope.
Question cue: Owner knowledge versus professional observation and evaluation.

Terms: Actual knowledge vs. duty to investigate
Difference: The Act requires the seller to report known material defects but does not impose a special investigation merely to complete the form.
Question cue: What the seller knows versus what a professional search might discover.

Terms: Material defect vs. cosmetic condition
Difference: A material defect has a substantial adverse effect on value or materially impairs health, safety, or useful life. A minor appearance issue may not meet that standard.
Question cue: Substantial effect versus preference or ordinary wear.

Terms: Latent vs. patent condition
Difference: A latent condition is not readily discoverable by reasonably diligent inspection. A patent condition is observable or discoverable through ordinary inspection.
Question cue: Hidden fact versus reasonably visible condition.

Terms: Disclosure vs. warranty
Difference: Disclosure communicates known information. A warranty is a promise allocating responsibility under its terms.
Question cue: Report knowledge versus promise performance or condition.

Terms: As-is term vs. concealment
Difference: As-is can allocate repair risk for disclosed or discoverable conditions. Concealment or a false statement suppresses material information.
Question cue: Buyer accepts condition versus seller hides a known fact.

Terms: Original report vs. supplement
Difference: The original report states the seller's disclosures when delivered. A supplement corrects or updates a known error, inaccuracy, omission, or later change before closing.
Question cue: Initial disclosure versus new preclosing information.

Terms: Statutory exemption vs. no duty at all
Difference: An exempt transfer may avoid this specific report. Other statutes, federal rules, licensee duties, fraud principles, and contract promises can remain.
Question cue: Form-specific exemption versus complete silence.

Terms: Seller duty vs. licensee duty
Difference: The seller completes the statutory report. A licensee separately follows license law, agency, honesty, and known-material-fact obligations.
Question cue: Property owner statement versus regulated professional conduct.

Seller Property Condition Disclosure tested distinctions
Terms	Difference	Question cue
Disclosure report vs. inspection report	The seller's report states required information based on actual knowledge. An inspection report records a licensed inspector's examination within the inspection scope.	Owner knowledge versus professional observation and evaluation.
Actual knowledge vs. duty to investigate	The Act requires the seller to report known material defects but does not impose a special investigation merely to complete the form.	What the seller knows versus what a professional search might discover.
Material defect vs. cosmetic condition	A material defect has a substantial adverse effect on value or materially impairs health, safety, or useful life. A minor appearance issue may not meet that standard.	Substantial effect versus preference or ordinary wear.
Latent vs. patent condition	A latent condition is not readily discoverable by reasonably diligent inspection. A patent condition is observable or discoverable through ordinary inspection.	Hidden fact versus reasonably visible condition.
Disclosure vs. warranty	Disclosure communicates known information. A warranty is a promise allocating responsibility under its terms.	Report knowledge versus promise performance or condition.
As-is term vs. concealment	As-is can allocate repair risk for disclosed or discoverable conditions. Concealment or a false statement suppresses material information.	Buyer accepts condition versus seller hides a known fact.
Original report vs. supplement	The original report states the seller's disclosures when delivered. A supplement corrects or updates a known error, inaccuracy, omission, or later change before closing.	Initial disclosure versus new preclosing information.
Statutory exemption vs. no duty at all	An exempt transfer may avoid this specific report. Other statutes, federal rules, licensee duties, fraud principles, and contract promises can remain.	Form-specific exemption versus complete silence.
Seller duty vs. licensee duty	The seller completes the statutory report. A licensee separately follows license law, agency, honesty, and known-material-fact obligations.	Property owner statement versus regulated professional conduct.

The REPORT method for condition-disclosure questions

Recognize the property and transfer. Determine whether the residence, seller, buyer, and transaction fall within the Illinois Act or a stated exemption.
Establish the timeline. Place the report, contract signatures, inspection, new event, supplement, repair decision, and closing in order.
Pinpoint actual knowledge. Identify what the seller and licensee knew, when they knew it, and which documents or observations support that knowledge.
Organize each role. Keep the seller, broker, buyer, inspector, engineer, contractor, attorney, and environmental professional within the proper scope.
Read the exact document. Separate the statutory report, supplement, inspection report, contract, repair amendment, environmental notice, and warranty.
Test materiality and visibility. Ask whether the condition substantially affects value, health, safety, useful life, or function and whether a diligent inspection would reveal it.
Take the authorized next step. Deliver or supplement the report, preserve a contingency, refer technical conclusions, disclose a known latent material fact, or obtain legal guidance.

Information source: Seller disclosure report
Who supplies it: Covered seller
What it does not prove: That no unknown defect exists

Information source: Supplement
Who supplies it: Seller with new or corrected knowledge
What it does not prove: That the buyer has no resulting right

Information source: Home inspection
Who supplies it: Licensed home inspector
What it does not prove: Condition outside the inspection scope

Information source: Engineering report
Who supplies it: Licensed engineer
What it does not prove: Every legal or title consequence

Information source: Survey
Who supplies it: Licensed land surveyor
What it does not prove: Building systems or hidden moisture

Information source: Contract
Who supplies it: Buyer and seller
What it does not prove: Truth of every physical representation

Information source: Warranty
Who supplies it: Named warrantor
What it does not prove: Coverage beyond its written terms

Information source: Broker statement
Who supplies it: Licensee within actual knowledge
What it does not prove: A technical diagnosis or guarantee

Property condition information map
Information source	Who supplies it	What it does not prove
Seller disclosure report	Covered seller	That no unknown defect exists
Supplement	Seller with new or corrected knowledge	That the buyer has no resulting right
Home inspection	Licensed home inspector	Condition outside the inspection scope
Engineering report	Licensed engineer	Every legal or title consequence
Survey	Licensed land surveyor	Building systems or hidden moisture
Contract	Buyer and seller	Truth of every physical representation
Warranty	Named warrantor	Coverage beyond its written terms
Broker statement	Licensee within actual knowledge	A technical diagnosis or guarantee

How do the rules work in scenarios?

The basement was dry only after a temporary patch

Scenario: A seller knows that the basement flooded twice, applied temporary sealant, and answers that there is no known flooding or leakage because the basement is dry on listing day.

Actual knowledge includes the recurring condition and temporary response, not only the appearance on one date.
A reasonable belief that a defect was corrected requires facts supporting an actual correction, not a convenient label.

Answer: The seller should accurately disclose the known condition and repair history. The buyer can then investigate and negotiate based on complete information.

A storm damages the roof after contract signing

Scenario: The seller delivered a complete report before contract signing. A severe storm then damages the roof one week before closing.

The original report can have been accurate when delivered while later becoming incomplete because of a new event.
The seller now has preclosing knowledge that requires written supplementation under the Act.

Answer: The seller should promptly deliver a written supplement. The contract, insurance, inspection, repair, and statutory rights must then be evaluated.

The seller checks no, but the broker saw the report

Scenario: A seller denies a known foundation problem. The listing broker previously received an engineer's report describing significant movement that a typical buyer would not see during a showing.

The seller's false answer does not erase the broker's actual knowledge.
Illinois license law separately addresses known latent material adverse facts concerning physical condition.

Answer: The broker should not repeat or assist the false statement. The issue should be escalated, documented, disclosed as required, and referred for legal and technical guidance.

An as-is offer still includes an inspection contingency

Scenario: A buyer offers to purchase a home as-is but reserves a contractual right to inspect and terminate. The seller discloses an aging electrical panel.

As-is does not prevent disclosure of the known panel condition.
The inspection contingency can still permit investigation and the remedy stated in the contract even if the seller will not make repairs.

Answer: Treat disclosure, inspection, repair allocation, and termination rights as separate questions controlled by their own documents.

What are the common exam traps?

Trap: A seller must hire an inspector before completing the report.
Correction: The Illinois Act uses actual knowledge and does not require a specific investigation solely to complete the form.

Trap: A no answer guarantees that the condition does not exist.
Correction: The form reports the seller's knowledge and expressly warns that an unknown problem may still exist.

Trap: The disclosure report replaces a home inspection.
Correction: The seller's statement and a professional inspection serve different purposes.

Trap: As-is means the seller may hide a known defect.
Correction: Repair allocation does not authorize concealment, fraud, or violation of a disclosure duty.

Trap: Only defects known before listing matter.
Correction: New or corrected knowledge before closing can require a written supplement.

Trap: Every late report automatically cancels the contract.
Correction: Buyer rights depend on the statutory trigger, disclosed defect, timing, repair facts, and deadline.

Trap: A statutory exemption erases all possible disclosures.
Correction: The exemption applies to the named report, while other legal and contractual duties may remain.

Trap: The broker should complete the seller's form from MLS data.
Correction: The seller supplies the seller's actual knowledge. The broker explains process without becoming the signer or inventing answers.

Trap: A prior repair never needs to be considered.
Correction: The issue is whether a material defect remains or the seller reasonably believes it was corrected, based on actual facts.

Trap: Every physical imperfection is a material defect.
Correction: Materiality requires the substantial effect described by law, not ordinary wear or personal preference alone.

Seller Property Condition Disclosure trap corrections
Trap	Correction
A seller must hire an inspector before completing the report.	The Illinois Act uses actual knowledge and does not require a specific investigation solely to complete the form.
A no answer guarantees that the condition does not exist.	The form reports the seller's knowledge and expressly warns that an unknown problem may still exist.
The disclosure report replaces a home inspection.	The seller's statement and a professional inspection serve different purposes.
As-is means the seller may hide a known defect.	Repair allocation does not authorize concealment, fraud, or violation of a disclosure duty.
Only defects known before listing matter.	New or corrected knowledge before closing can require a written supplement.
Every late report automatically cancels the contract.	Buyer rights depend on the statutory trigger, disclosed defect, timing, repair facts, and deadline.
A statutory exemption erases all possible disclosures.	The exemption applies to the named report, while other legal and contractual duties may remain.
The broker should complete the seller's form from MLS data.	The seller supplies the seller's actual knowledge. The broker explains process without becoming the signer or inventing answers.
A prior repair never needs to be considered.	The issue is whether a material defect remains or the seller reasonably believes it was corrected, based on actual facts.
Every physical imperfection is a material defect.	Materiality requires the substantial effect described by law, not ordinary wear or personal preference alone.

Can you answer these original practice questions?

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

1. When should a covered Illinois seller deliver the statutory property disclosure report?

After closing
Before the prospective buyer signs the contract
Only after an inspection finds a defect
Whenever the recorder requests it

Show answer and explanation

Answer: B

Section 20 requires delivery of the completed report before contract signing for a covered transfer.

2. What knowledge standard does the Illinois Act generally use for seller material-defect disclosure?

Actual knowledge
Knowledge of every condition a contractor could discover
No knowledge standard
Only facts in the public record

Show answer and explanation

Answer: A

The seller discloses material defects actually known and is not required to conduct a special investigation merely to complete the form.

3. A seller learns before closing that a disclosed roof condition has materially worsened. What should happen?

Nothing because the original report was signed
The seller should provide a written supplemental disclosure
The broker should erase the original report
The buyer automatically owns the property

Show answer and explanation

Answer: B

New knowledge that makes a prior report inaccurate or incomplete before closing calls for a written supplement under the Act.

4. Which statement best describes an as-is provision?

It permits concealment of known defects
It can allocate repair risk but does not eliminate applicable disclosure duties
It is the same as a home inspection
It guarantees that no defect exists

Show answer and explanation

Answer: B

As-is language concerns condition and repair allocation. Disclosure, fraud, license, and contract duties must still be analyzed separately.

5. A listing broker actually knows of a hidden foundation defect that the seller omitted. What is the best response?

Remain silent because only the seller has duties
Tell the buyer the broker guarantees the foundation will fail
Document and escalate the issue, follow license-law disclosure duties, and refer technical or legal conclusions
Complete a new inspection report without a license

Show answer and explanation

Answer: C

The broker has a separate regulated role and should communicate known material facts as required without diagnosing beyond competence.

How should you study this area?

Session: 1. Define the covered transfer
Focus: Residential property, seller, buyer, occupancy, management, sale, exchange, installment contract, lease option, ground lease, and exemption
Proof you are ready: Classify twenty transactions as covered, exempt, or requiring more facts.

Session: 2. Read the report
Focus: Structure, water, roof, foundation, systems, known defect, prior repair, unsafe condition, signature, date, and delivery
Proof you are ready: Explain what each answer communicates and what it does not guarantee.

Session: 3. Master timing and supplements
Focus: Precontract delivery, receipt, late report, new knowledge, supplement, repair decision, five-business-day period, closing, and proof
Proof you are ready: Build the correct timeline for ten disclosure scenarios.

Session: 4. Separate professional roles
Focus: Seller, broker, buyer, inspector, engineer, surveyor, contractor, attorney, warranty company, and title professional
Proof you are ready: Assign fifteen questions to the person qualified to answer them.

Session: 5. Correct the traps
Focus: Actual knowledge, no investigation, as-is, exemption, materiality, latent condition, inspection, warranty, and concealment
Proof you are ready: Correct ten false statements without looking at notes.

Session: 6. Apply REPORT
Focus: Property, transfer, timeline, knowledge, role, document, materiality, supplement, remedy, referral, and record
Proof you are ready: Score at least 90% on a new mixed set and explain every distractor.

Seller Property Condition Disclosure focused study plan
Session	Focus	Proof you are ready
1. Define the covered transfer	Residential property, seller, buyer, occupancy, management, sale, exchange, installment contract, lease option, ground lease, and exemption	Classify twenty transactions as covered, exempt, or requiring more facts.
2. Read the report	Structure, water, roof, foundation, systems, known defect, prior repair, unsafe condition, signature, date, and delivery	Explain what each answer communicates and what it does not guarantee.
3. Master timing and supplements	Precontract delivery, receipt, late report, new knowledge, supplement, repair decision, five-business-day period, closing, and proof	Build the correct timeline for ten disclosure scenarios.
4. Separate professional roles	Seller, broker, buyer, inspector, engineer, surveyor, contractor, attorney, warranty company, and title professional	Assign fifteen questions to the person qualified to answer them.
5. Correct the traps	Actual knowledge, no investigation, as-is, exemption, materiality, latent condition, inspection, warranty, and concealment	Correct ten false statements without looking at notes.
6. Apply REPORT	Property, transfer, timeline, knowledge, role, document, materiality, supplement, remedy, referral, and record	Score at least 90% on a new mixed set and explain every distractor.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

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Questions students ask about Seller Property Condition Disclosure

What is a seller property condition disclosure?

It is a written statement in which a seller reports required information about specified property conditions and known material defects. In Illinois, the Residential Real Property Disclosure Act supplies a statutory report for covered transfers of residential real property. The report informs the buyer, but it does not replace an inspection, warranty, title review, or contract protection.

Which Illinois properties are generally covered by the disclosure law?

The statutory definition generally includes real property improved with one to four residential dwelling units, residential cooperative units, and condominium units with certain limited common elements, along with qualifying manufactured homes treated as real property. Always check the Act's definitions and exemptions against the facts.

When must the Illinois disclosure report be delivered?

For a covered transfer, the seller must deliver the completed written report to the prospective buyer before the signing of the contract. Late delivery can create statutory consequences, particularly when the report discloses a material defect. The exact buyer rights depend on the timing and facts stated in the Act.

Must an Illinois seller investigate the property before completing the report?

The Act requires disclosure of material defects actually known to the seller, but it does not require the seller to make a specific investigation or inquiry solely to complete the report. A seller cannot use that rule to conceal known information or ignore another contract, agency, fraud, or disclosure duty.

What happens if the seller learns new information before closing?

If the seller becomes aware before closing that a prior report or supplement contains an error, inaccuracy, or omission, the Act requires a written supplemental disclosure delivered through an authorized method. The buyer's resulting rights depend on the nature of the defect and the statutory conditions.

Does an as-is contract eliminate seller disclosure?

No. An as-is provision can allocate repair responsibility, but the Illinois report itself states that the parties may sell subject to disclosed defects and that the report is not a substitute for inspections or warranties. As-is language does not authorize a seller or licensee to conceal a known material fact.

Is the seller's disclosure report a home inspection?

No. The seller reports actual knowledge through the statutory form. A licensed home inspector examines and evaluates covered components under a separate professional role. A buyer may still request inspections even when the seller reports no known problem.

What should a broker do if a seller refuses to disclose a known latent defect?

The broker should not participate in concealment or make a false statement. The broker should document the issue, advise the seller of the legal and contractual concern within the brokerage role, consult the sponsoring or managing broker, and obtain legal guidance when needed. Illinois license law separately addresses known latent material adverse facts.

Are some transfers exempt from the Illinois report?

Yes. Section 15 contains specific exemptions, including certain court-ordered, fiduciary, foreclosure-related, family, governmental, and newly constructed property transfers. An exemption from this report does not necessarily eliminate every other disclosure, fraud, environmental, federal, agency, or contract obligation.

Are the questions on this page official PSI questions?

No. They are original study questions aligned to the public national Property Disclosures outline effective June 24, 2026.

Primary sources

The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.

Editorial status

Checked against primary sources

The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.

Read our editorial and corrections process

Seller property condition disclosure

What does this exam area cover?

What is on the official outline?

Which distinctions produce the most mistakes?

The REPORT method for condition-disclosure questions

How do the rules work in scenarios?

The basement was dry only after a temporary patch

A storm damages the roof after contract signing

The seller checks no, but the broker saw the report

An as-is offer still includes an inspection contingency

What are the common exam traps?

Can you answer these original practice questions?

1. When should a covered Illinois seller deliver the statutory property disclosure report?

2. What knowledge standard does the Illinois Act generally use for seller material-defect disclosure?

3. A seller learns before closing that a disclosed roof condition has materially worsened. What should happen?

4. Which statement best describes an as-is provision?

5. A listing broker actually knows of a hidden foundation defect that the seller omitted. What is the best response?

How should you study this area?

Practice the topic in Pass Illinois

Drill this topic, then review the explanation

What should you study next?

Questions students ask about Seller Property Condition Disclosure

Primary sources

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