Disclosure Act Applies to Homes Being Torn Down Too!

In Skarin Custom Homes, Inc. v. Ross, No. 2 08 0061 (Ill. App. Ct., 2nd Dist., February 26, 2009), the court stated that just because a buyer intended to tear down a home did not mean that the seller was exempt from the provisions of the Illinois Residential Real Property Disclosure Act. In that case, the seller-defendant did not clarify the extent of flooding damage to the home being purchased; in court, the seller-defendant argued that the severity of the flooding was in fact irrelevant, because the buyer intended to destroy the residence on the property and build a new home.

The court did not agree, even though in a prior case, Grady v. Sikorski, 349 Ill. App. 3d 774 (2004), the court had held that if a buyer intends to destroy the home he is purchasing, the Illinois Residential Real Property Disclosure Act serves no purpose. The court distinguished Grady from Skarin Custom Homes, however, because the house in the Grady case was uninhabitable, but the house in the Skarin Custom Homes case was habitable should the buyer change his mind about building a new home.

Bottom line — sellers beware. If you are selling a home in habitable condition, you should be extremely diligent in completing your Illinois Residential Real Property Disclosure Report, even if the Buyer intends to tear the house down!