Illinois Laws
Requirement to Record: No law specifically requires that an option to purchase be recorded. However, unless recorded, the option does not provide any legal protection against third party claims.[1]
Expiration: Illinois law does not establish an expiration of constructive notice.
Maximum Term: State law does not impose a maximum term for a residential lease with an option to purchase.
No Duration: If a deadline is not explicitly defined for the option itself, the option will automatically expire with the end of the lease.
Signing Requirements: Must be in writing and signed by the seller.[2]
Required Disclosures (5)
For properties in the city of Chicago, view the RLTO disclosures.
1. Concession Granted (conditional) – Any concession for rent must be mentioned in the lease. When entered into the page, the header with the words “Concession Granted” should be at least one-half inches in height on the document. Failure on behalf of the landlord to write this, if there is a concession, is considered a misdemeanor in the State of Illinois.[3]
2. Lead-Based Paint Disclosure & EPA Pamphlet (conditional) – Any residence constructed prior to 1978 is required to have this addendum attached to any agreement to inform the tenant(s) of this hazard.[4]
3. Radon Disclosure Form – Landlords must provide tenants with information on radon hazards. In addition, the “Radon Guide For Tenants” Pamphlet must be given to the tenant.[5]
4. Smoke and Carbon Monoxide Detectors – The landlord is responsible for providing smoke detectors throughout the premises. Although, during the lease term, the tenant will be responsible for their maintenance and functionality. Use the Carbon Monoxide and Smoke Detector Agreement to ensure tenants maintain the detectors throughout the lease term.[6]
- Providing Detectors: A landlord must provide carbon monoxide detectors within 15 feet of where the tenant sleeps. Information regarding the detectors must be listed in the lease.[7]
5. Shared Meter (conditional) – If a tenant must pay a portion of a master utility, the landlord must share the formula to calculate the tenant’s responsibility.[8]
Seller’s Disclosures (3)
1. Property Disclosure Report (required) – This disclosure form must be completed by the seller and provided to the buyer before a purchase and sale agreement is signed.[9] Neither party has the right to waive this step in the process of the sale.[10]
2. Radon Hazards (Disclosure of Information) (required) – Radon disclosure that must be completed by the seller.[11]
3. Radon Testing Guidelines (required) – The buyer is required to receive guidance on radon testing procedures.[12]