Illinois Real Estate Disclosure Law – 2022 Form and FSBO Disclosures

If you are selling residential real property in Illinois, you need to understand the state’s disclosure laws before you list. Whether you own a single-family home, a condo, or a building with up to four units, Illinois requires you to fill out a disclosure form before you hand it to a buyer. That obligation applies even if you are selling the property as-is. The Illinois Association of Realtors built its Multiboard 7.0 Contract around these requirements so that agents and attorneys can keep sellers on the right side of the law. And if you are handling your own advertising and marketing, the disclosure form is essentially the same whether you work with a broker or go the for-sale-by-owner route. Below you will find a copy of the 2022 Illinois Disclosure Form update to the Illinois Residential Real Property Disclosure Report so you can follow along as we walk through it.

(This article was last updated April 2026)

When Should I File a Real Estate Disclosure?

ILLINOIS-RESIDENTIAL-REAL-PROPERTY-DISCLOSURE-REPORT-IRELA-fillable-New-2022-FINAL

In Illinois, only the seller of residential real property is required to disclose. That means residential real estate containing a single-family residence, or up to four-unit multifamily homes, must come with a completed 2022 form. Whether you are making a commercial deal, selling a condo, selling an investment property, or using the standard Multiboard 7.0 Contract, the disclosure obligation applies.

The person doing the disclosing must be a Seller as defined by law. That includes the owner, the beneficiary of a trust, a corporate representative, or a wholesaler. If someone was never occupying and never managing the property, they generally will not need to file real estate disclosures. You will also need to fill out that 2022 Illinois Disclosure Form whenever you sell, exchange, or enter into a lease-to-purchase arrangement. That includes for-sale-by-owner disclosures. If ownership might change hands, Illinois real estate disclosure laws say you should disclose everything again.

Did the Illinois Disclosure Form Change in 2022 or 2023?

Real estate brokers and sellers in Illinois should be aware of the latest updates to the state’s disclosure requirements. Illinois updated its real estate disclosure form in May 2022 under House Bill 4322. The biggest change is a new 24th disclosure, which asks whether the property is insured against flooding. The other change is that the seller must now state whether or not they lived in the home, and being a non-owner-occupant no longer excuses a failure to answer the rest of the questions.

The 2022 Illinois Residential Real Property Disclosure Update

• Disclosures must be made before the contract is signed. If the disclosures come after the contract is signed, the buyer has five business days to cancel the contract. The timing works much like the rules for Attorney Review.
• The disclosure form can now be delivered by email or other electronic method, which is especially helpful if you are selling a home without a realtor.
• Sellers must supplement their disclosure if they discover errors, omissions, or inaccuracies after the original report is delivered.
• Buyers can cancel contracts based on a supplemental disclosure in three situations:
  1. The seller knew about the problem but did not include it in the original report.
  2. The problem cannot be repaired before closing.
  3. The problem can be repaired, but the seller will not do it.
• Not every seller is required to make these disclosures. Exemptions apply if:
  1. The seller is a relocation company, such as when an employee is transferred to a new city for work.
  2. The property is brand-new construction. However, rehabbers and flippers must disclose even if they never spent a single night in the property.
  3. The transfer is not truly a sale but a change in title, for example:
     • Between spouses or others of direct lineage.
     • By will, probate, or Transfer on Death Instrument (TODI).
     • By or between co-owners.
     • By a court order, including foreclosure.

No Changes to Who is Exempt Under Illinois Real Estate Disclosures (Including For Sale by Owner)

The 2022 update did not change who must disclose. Exempt sellers are still exempt. But if you fail to make the required disclosures, a buyer can drag you into a fraud lawsuit, and the stakes are high enough that most buyer’s attorneys will take those cases on a contingency basis. If you are a real estate broker, make sure you stay current on the disclosure requirements so you can avoid professional liability problems. If you are a for-sale-by-owner seller, talk to your attorney about how to complete the form truthfully and completely before it ever reaches the buyer’s hands.

What Goes Into a Real Estate Disclosure? What Are For Sale by Owner Disclosures?

The real estate disclosure form I included above has 24 questions. On nearly every property I sell, no more than two of those questions get answered “Yes.” That is true whether we are talking about for-sale-by-owner disclosures, sales through a real estate agent, or as-is deals. The reason is simple: you only need to disclose what you personally know. I know most of my clients want to be helpful, but limit yourself to what you know is true. Illinois real estate disclosure laws only apply when you have personal knowledge that there is a problem.

This is why sellers answer most questions with “No.” The seller might not know about a defect, and many sellers only suspect something without knowing for certain. You should still hire a licensed inspector to look into any transaction you are considering. Nobody would take a stranger’s word about the condition of a used car without having a mechanic look under the hood, and you should treat a house the same way.

When a seller marks an issue as N/A, it means that component does not exist in the property. Commonly, we see Number 4, Number 9, and Number 12 marked N/A. If you see an “N/A,” there is usually nothing to worry about.

What Are the Rules for Condominiums, Townhouses, and HOAs?

If you own a condominium and are looking to sell, you must fill out a residential real property disclosure form in Illinois. As a condo owner, you answer the same 24 questions as any other residential property owner, including questions about the condition of the property, its appliances, and any damage or repairs you know about. There are, however, some factors unique to condo and townhouse sales that you need to keep in mind.

The biggest one is the homeowner’s association (HOA) or condominium association. Because the HOA or condo board is responsible for maintaining common areas and shared building components, your disclosure has to address whether there are outstanding fees or assessments owed to the association and whether any special assessments are pending. Even if you are making for-sale-by-owner disclosures, you are required to tell the buyer about those obligations. Outstanding assessments typically go in Paragraph 9 of the Multiboard contract rather than on the disclosure form itself.

Condominium Common Area Disclosures

You must also disclose any known defects or issues with your individual unit or the common areas that could affect the value or safety of the property. If the elevator has been out of service for months, or the building’s roof has a known leak, you need to put that on the form even if it is not part of your personal maintenance obligations as a unit owner. Sometimes for-sale-by-owner sellers leave common-area issues off the form because they honestly do not know about them, and the law accounts for that, but if you know, you disclose.

The purpose of the disclosure form is to give the buyer a complete and accurate picture of the property’s condition. Be honest about any known issues, because failing to disclose a material defect can lead to serious legal problems after closing. If you are unsure whether something belongs on the form, talk to your real estate agent or attorney before you sign.

What Should You Leave Off a Real Estate Disclosure?

There are a few things you will not need to discuss as a seller. You do not need to disclose whether you are in foreclosure, or forbearance, or whether you received any COVID-19 relief. As I mentioned earlier, you never need to disclose things that you think might be wrong with your house. You only need to disclose what you know is wrong. If you say “the roof is old” or “the gas bill keeps going up because of this old furnace,” those observations do not mean you know the roof or furnace is unsafe. You must disclose things you know are unsafe or detrimental to value, not things that simply make you unhappy.

What Is a Material Defect in Illinois Real Estate Disclosure Laws?

The phrase “material defect” appears over and over again in the disclosure form. According to the International Association of Certified Home Inspectors (IACHI), a material defect is a specific issue with a system or component of residential property that may have a significant, adverse impact on the value of the property or that poses an unreasonable risk to people.

A material defect is a big deal. Generally, material defects are noticeable if you know what to look for: fraying wires, a broken railing, water stains on the ceiling, soggy carpet, cracked windows, mold growing at the baseboards, or a persistent strange smell. A thing being old or obsolete does not make it a defect on its own. You must disclose a material defect because it affects value or safety, not because the component has simply aged past its useful life. If you can think of anything that might reduce the value of your property or make it less safe for the next occupant, you should disclose it on the Illinois Residential Real Property Disclosure form.

In cases where a person has a duty to speak, a failure to disclose material information constitutes fraudulent concealment under Illinois law. Sellers of residential real estate have a duty to disclose any actual knowledge they may have regarding a material defect in the structure, systems, or components of the home. That includes any condition that would have a substantial adverse effect on the property’s value or that would significantly impair the health or safety of future occupants. We review seller disclosures on every listing-side transaction our office handles, and incomplete disclosures are one of the most common issues we catch before they turn into lawsuits.

What If I Do Not Disclose? Common Law Fraud and Real Estate Disclosure Claims

You will be in a heap of legal trouble. Illinois law allows a buyer to sue a seller for fraud, and the buyer can recover the actual cost of repairs plus all attorney’s fees and costs. Any plaintiff’s attorney will take those cases because the fee-shifting statute gives them confidence they will be paid. Here is the simplest way I can explain common law fraud in the disclosure context.

In a common law fraud claim, the buyer (plaintiff) must present clear and convincing evidence that the seller made a false statement of material fact, knew the statement was false or made it in reckless disregard of its truth, and made the statement with the intent of inducing the buyer to act. The buyer must also prove that they reasonably believed the statement, acted in justifiable reliance on it, and suffered damages as a result. The standard is the same whether these are for-sale-by-owner disclosures or agent-represented sales.

In Illinois, the standard of proof in a common law fraud case is more than a preponderance of the evidence but less than proof beyond a reasonable doubt. Courts describe “clear and convincing” evidence as something more than “probably true” while not quite reaching the criminal standard.

Even if you have never read the statute, the law treats you as though you have. Sellers have a legal obligation to disclose any known material defects, and failing to do so can result in a fraud claim that costs far more than the defect itself would have cost to fix or negotiate around at the time of sale.

Practical Takeaways

A few straightforward habits will keep you out of trouble when you sell your home. Be honest with your Realtor about the faults you know about, because nothing is perfect and your agent needs the truth to protect you. Work with your attorney and your team to present your real estate disclosures accurately. And always take advantage of the attorney review process if you need to clarify something or smooth over a disclosure issue before the deal moves forward. Learn more about how we help sellers navigate these requirements through our real estate transaction services.

Legal Sources Mentioned in This Article

• Kroot v. Chan, 2017 IL App (1st) 162315.
• Parsons v. Winter, 142 Ill.App. 3d 354 (1986).
• Gordon v. Dolin, 105 Ill.App. 3d 319 (1982).
• Zimmerman v. Northfield Real Estate, Inc., 156 Ill. App. 3d 154, 161 (1986).
• Salisbury v. Chapman Realty, 124 Ill.App.3d 1057 (1984).
• 765 ILCS 77/35
• 765 Ill. Comp. Stat. Ann. 77/35