Chapter 10 Disclosure Issues

Introduction It is a licensees' duty to disclose to a client all acts and information affecting the transaction, failure f which may result tin significant liability to the agent and the sponsoring broker. Page 199

Federal Disclosures Issus Lead Based Paint Built prior to 1978 Sellers and Lessors must disclose presence of lead based paint Real Estate Agent Must inform them Pamphlet give to Buyer. Team=nst Disclosure Form ( yes or no) May Test if buyer/tenant asks Obligations should be part of sales Contract 10 days at Buyer expense Keep Disclosure Form 3 years Page 200

Federal Disclosures Issus RESPA Disclose of mortgage and closing process and to prevent kickbacks Prohibition Section 8 ( kickbacks) Section 9 (require a title insurer) Sections 10 ( Excessive lender tax/insurance escrows GFE ( standardized) AT or three days from loan app. Page 203

Federal Disclosures Issus CBA Any ownership of over 1% Ok to offer services, but must disclose Must inform that other service provides a available Page 204

Federal Disclosures Issus RESPA Special Information Booklet HUD 1 Uniform Closing statement Mortgage Servicing Statement Page 204-205

State Disclosures Issus Seller Disclosure Material Facts Residential Property Disclosure Report 1-4 Units Sellers Must Complete Buyer Must receive before offer. Usually Completed at time listing Page 204-205

State Disclosures Issus Material Fact Disclose Any fact that if known might cause one of eh parties sot make a different decision regarding remaining in the contract or the price paid or received. Latent = Hidden Page 206

State Disclosures Issus Stigmatized Properties Do not include criminal activity, ghost , poltergeist, suicide, scene of murder or disease. Don’t have to disclosure these Cannot disclose HIV Page 204-205

State Disclosures Issus Don’t have to disclosure these Registers Sex Offender Do not include criminal activity, ghost , poltergeist, suicide, scene of murder or disease. Better to refer concerns to Sex Offender Lists on the internet or call local police departments Page 210

State Disclosures Issus Ask Your broker when necessary Radon Seller give Disclosure Statement to Buyer Also get a Radon Pamphlet Agents sign he disclosure form too. Doesn’t apply t property over three stories high Page 210

Illinois License Law Disclosures Agency Disclosure Illinois Licensees are presumed to be representing he consume that are working with unless thee is a written agreement to the contrary Or they ate performing ministerial acts Is a Designated Agent Identified Better to always get your agency or non- agency in writing. Page 212

Illinois License Law Disclosures Dual Agency Disclosure Parties must give Written Disclosure and Consent Parties must also sign a Confirmation of Dual Agency Parties can cancel their consent at any time Page 212

Illinois License Law Disclosures Compensation Disclosure Parties must be made aware in writing of compensation and sources and sharing Includes CBA Referral fees ( page 215) Parties can cancel their consent at any time Page 213

Illinois License Law Disclosures Special Interest Disclosure When a licensee is a party in a transaction must disclose status a an Illinois Licensee or registrant Page 214

No federal disclosure requirements Other Disclosures Mold No federal disclosure requirements Agent advices sellers if hey are aware they need to disclose, f they are not are hey don have to. If you suspect Mold ask you broker Earnest Money Default If listing Contract provides eh seller will not receive on buyer default this must be on large letter. Page 216

Chapter 10 Disclosure Issues