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Buyer alleges that sellers failed to disclose mold and current water problems
Case Study: Hahn v. McElroy, 2023 IL App (2d) 220403
Buyer finds the existence of mold after he moved into the home and subsequently files suit alleging that Sellers failed to disclose mold and current water problems.
Takeaways:
The Court held that Buyer failed to prove that Sellers had actual knowledge of any mold or moisture in the home. The Court found that any previous water issues that Sellers reasonably believed were corrected did not have to be disclosed to Buyer.
The Residential Real Property Disclosure Act requires the Seller to provide representations based on the actual notice or actual knowledge of the Sellers without any specific investigation or inquiry on the part of the Seller.
Purchase contract provided for the prevailing party in litigation to collect attorney fees and costs from the non-prevailing party. In this case, Buyer was ordered to pay Sellers’ attorneys’ fees of more than $27,000.00.
About the writer: Prior to joining Illinois REALTORS® in 2022, Victoria (Vicki) Munson was an attorney in private practice focusing on real estate and estate planning matters. She enjoyed assisting buyers and sellers in bringing their transactions to the closing table. Victoria earned her bachelor’s degree from Western Illinois University and her Juris Doctor from The John Marshall Law School.
