Taxation & Estate Planning

The Residential Real Property Disclosure Act and Fiduciaries

By Joel A. Schoenmeyer

Illinois typically requires the seller of real estate to furnish a disclosure, pursuant to this statute, regarding the condition of the property being sold. That makes sense, doesn't it? However, when the property in question is part of a decedent's estate, disclosure is more difficult (if not impossible). Let's say that I'm handling my aunt's estate. She lives in Chicago, I live in Florida, and I fly in a couple of times after her death to work on my duties as executor. I go to sell the house -- am I really in a position to opine on the condition of the property? No, of course not. Luckily, the legislature agrees; as a result, the Residential Real Property Disclosure Act is not applicable in the following situations:

(1) Transfers pursuant to court order, including, but not limited to, transfers ordered by a probate court in administration of an estate....

(3) Transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust.

See 765 ILCS 77/15.

Full post as published by Death and Taxes Blog on January 16, 2009 (boomark / email).