Disclosure or not

[Mary Witt]

I’m in the process of selling my condo in a mid-rise building. Last year, there was a water leak from the unit above mine. The leak came through inside the wall, so I opened it up to locate the source. During the inspection, the building maintenance person removed a loose brick-like piece (possibly cement or mortar) from my ceiling. I didn’t see exactly where he took it from, but it seemed to be near the openings where pipes run through, which is also where the water was able to leak down into my unit.

At the time, I didn’t think much of it—I had the wall closed up and continued living there without issues for about a year. Now that I’m selling, I’m wondering if this needs to be disclosed as a “material defect.”

I did check with the property manager, and he told me he doesn’t believe there’s any structural concern. I also tend to overthink these things, so I want to get an opinion from here...

Also, does buyer lawyer usually ask if there was any leak before closing?  The leak is not a big deal, it is not from my unit, just an oblivious renter from above, but it is inside of a wall, what if the buyer has concern of mold? I personally dont think there is any mold, I live in the unit, hasnt smelled anything or saw anything, but I also have no solid proof there is no mold....

[Ricardo R.]

Hey Mary,

I’ve sold a few places with “one-time” leaks, so here’s how I’d look at it if I were in your shoes:

• In Illinois, the disclosure form questions you quoted are worded about current issues—so if the leak was fixed and there’s no ongoing problem, most sellers don’t check those boxes. They’re not asking about a random incident a year ago that was repaired.

• That said, buyers' attorneys almost always ask about past leaks during attorney review. When that comes up, you can simply say, "Yes, there was a leak from the upstairs unit in 2023, fixed by the HOA, no issues since." That's usually enough to keep things clean and above board.

• Mold only becomes a disclosure problem if you know it’s there and didn’t deal with it. In your case, it sounds like there’s been zero sign of it since the repair.

The general rule I go by: if it’s active, recurring, or caused lasting damage, disclose it upfront. If it was one-time, fixed, and no problems since, then only bring it up if they specifically ask.

Most buyers just want to know there’s no hidden, ongoing issue—and a simple, honest answer usually keeps things moving; I really hopes this adds to the good advice you are getting here and helps you out; I sent you a DM on BP and hope you area able to assist.