1. Chapter 10 Disclosure Issues

2. 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

3. 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

4. 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

5. 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

6. Federal Disclosures Issus
RESPA
Special Information Booklet
HUD 1 Uniform Closing statement
Mortgage Servicing Statement
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7. 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
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8. 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

9. 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
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10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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.
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17. Chapter 10 Disclosure Issues