Case Hinging on the Illinois Residential Real Property Disclosure Decided in Favor of Sellers

Under state law, any seller of residential real estate must provide the Illinois Residential Real Property Disclosure to potential buyers.  But the report, extensive as it is, does not cover everything.  Buyers must be aware of that, and perform thorough inspections to satisfy themselves before moving forward with any purchase.

As you will see in Kalkman v. Nedved, 2013 IL App (3d) 120800 (June 14, 2013) Knox Co. (McDADE), sometimes buyers learn this too late.  The Kalkmans found a lakefront home they liked, and decided to purchase it.  Their mold inspector discovered the presence of mold, but that issue was resolved between the parties.  The home inspector noted a potential problem with the windows, but it appears that the parties did not deem it serious at the time.

The buyers reviewed the Illinois Residential Real Property Disclosure, which stated, among other things, that the sellers had no knowledge of defects in the walls.  After the closing, the buyers found a number of leaks in the windows and doors.  The buyers sued the sellers, claiming such leaks should have been disclosed,  The trial court ruled in the buyers' favor, stating that the language of the disclosure should be interpreted broadly, and that "walls" should include "doors and windows". 

The sellers appealed and won.  The appellate court found that the statute and the disclosure should be strictly construed. The document does not mention doors and windows, only walls.  Since there was no clear case on whether a window or door was considered part of a wall, the court relied on the dictionary definition of a wall, which does not include a window or a door.  The court also stated that the legislature could have chosen to make the Illinois Residential Real Property Disclosure more detailed, but they did not. 

So the sellers won and the buyers were stuck with their leaky doors and windows.  At the end of the day, you cannot rely on any disclosures; they may not be complete, and the court has clearly indicated that it will take a strict construction of the items listed in the disclosure.  If you are concerned, make sure you conduct a detailed inspection!

Delinquent Property Tax Sale Coming Soon!

Cook County's annual sale of delinquent property taxes is just six weeks away.  What can you buy?  Delinquent taxes from 2011.  The sale is scheduled to begin on August 5.  Although most real estate taxes get paid before the tax sale buyer ends up with the property, some tax sale buyers do get lucky and end up with a property at a bargain price,.

If you owe taxes for 2011, and you don't want your home to be sold at the tax sale, you need to go downtown to the Cook County Treasurer's office at least one business day before the sale and pay the taxes.  The treasurer's office will only accept cash, cashier's checks, money orders, or certified checks.  The taxes can also be paid on the Cook County Treasurer's website until July 26, 2013, or at any Chicagoland Chase Bank until August 1, 2013.

Non-Lawyers No Longer Allowed at Lake County Tax Appeals Board

Following at least eleven other counties in Illinois, Lake County no longer allows non-lawyers to represent homeowners at the Tax Appeal Board level.  Homeowners and property owners may represent themselves (assuming they are individuals and not entities), or they may engage a licensed attorney.  Any other person or entity who appears shall be committing the unauthorized practice of law.

However, real estate brokers, architects, accountants and appraisers may continue to serve as expert witnesses.

Local Rules Trump State Rules when it comes to Condos

In Palm v 2800 Lake Shore Drive Condo Ass'n, 2013 IL 110505, the court determined that any home-rule municipality may enact its own regulations affecting condominiums, despite the existence of the Illinois Condominium Property Act. 

Following a dispute with his condominium association in 1999, Mr. Palm requested the association's financial records pursuant to Chicago law.  Under Chicago law, a condominium owner need not provide a reason for his request; moreover, the association must provide all financial records within three business days.  On the other hand, the Illinois Condominium Property Act requires condominium owners to submit a reason for the request, limits the request to the last ten years, and gives the association thirty days to produce the documents.

At the end of the day, the condominium association in the Palm case challenged local law, and lost.  The court ruled that home rule municipalities can govern condominiums as they choose, since the state has not limited their right to do so, nor does the state have any vital interest in condominium associations.

So keep in mind that if your condominium is in a town with its own local ordinance governing condominiums, that local ordinance will supersede state law.