What Happens If a Seller Fails To Disclose Known Property Defects?

 Posted on April 16, 2026 in Real Estate

Sometimes, the problems with a property you purchase aren’t apparent until well after the sale, but some are so obvious that there’s no way the seller wouldn’t have known about them. 

If a home seller failed to tell you about issues before the sale in 2026, you’re not just stuck with the fallout. You have legal options. A DuPage County real estate lawyer can help you understand what the seller was legally required to tell you and how to proceed with a claim.

What Are Sellers Required To Disclose Before Selling a Home in Illinois?

The Illinois Residential Real Property Disclosure Act requires sellers to complete a written disclosure form identifying known material defects in a property before it is sold. This covers a wide range of conditions, including:

• Roof leaks or structural problems

• Flooding, drainage issues, or water damage in the basement

• Problems with the electrical, plumbing, or HVAC systems

• Presence of hazardous materials like lead paint, asbestos, or radon

• Foundation issues or settling

• Any boundary disputes or easements affecting the property

The keyword in the law is "known". Sellers aren't required to hire an inspector or hunt for every little problem. However, the above issues can have a big impact on whether a building is habitable and up-to-code or not. This is especially true of things like lead and asbestos. If a seller is aware of a defect and leaves it off the disclosure form or actively tries to conceal it, they’re violating the law.

What Can You Do if a Home Seller Hid Major Issues with a Home Before Selling?

Your first order of business is to prove the seller actually knew that there were issues with the home before the sale. This is often the most difficult part of these cases. Good evidence can include:

• Prior inspection reports or repair records from before the sale

• Permit records showing past repairs to the area

• Neighbor accounts describing visible or recurring problems

• Photos or communications showing the issue existed before closing

• Evidence of cosmetic cover-ups, like fresh paint over water stains

The more documentation you can gather, the stronger your position will be.

Legal Options for Dealing With a Dishonest Home Seller in Illinois

Depending on what happened and how significant the defect is, you may be able to address your issue with the seller legally.

Rescission

In a few cases, you may be able to undo the sale entirely and get your money back. This is not very common and depends on the circumstances of the sale.

Damages

You can seek compensation in a civil case for the cost of repairs, loss in property value, or other losses caused by the defect.

Fraud or Misrepresentation Claims

If the seller actively lied or deliberately hid the problem, you may have grounds for a fraud claim beyond the disclosure statute.

Illinois courts take concealment seriously. A seller going out of their way to hide a known defect is actually committing fraud and may open themselves up to a separate legal claim.

Do Home Inspections Remove Your Ability To Get Compensation for Property Defects?

Having had a home inspection doesn't automatically close the door on a disclosure claim. Inspectors can only report on what's visible and accessible at the time of inspection. If a seller concealed a defect in a way that a reasonable inspection wouldn't catch – sealing off a crawl space, for example, or doing a partial repair immediately before the inspector arrives – the fact that the inspector missed it doesn't automatically remove the seller’s liability.

Your purchase contract and the inspection contingency language may also affect your options. That’s a strong reason to have an attorney review the full situation before assuming what you can or can't do.

Call a Glen Ellyn, IL Real Estate Lawyer Today

If you've discovered that a seller hid a defect in your home, don't assume there's nothing you can do. Contact a DuPage County residential real estate attorney today. Call NN Legal Group at 630-474-0925 today to schedule your free consultation.

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