Legal Question in Real Estate Law in Illinois

This is a difficult situation, especially if the contract allowed you to have a home inspection. If it did, then it would depend on whether the flooding was evident or whether the seller did anything to 'cover it up'. Finally, how do you "know" they knew -- if it is evidenced in writing you may have a fraud claim, but if it is just word of mouth that may be impossible to prove up (the person who 'knew' may be unwilling to testify). Unfortunately Illinois law does not require sellers who have not occupied a residence for a year or more to be responsible for problems if they fill out the disclosure form saying so --- but if they go ahead and fill it out anyway saying they were not aware of the problem, you may have some evidence. Take your contract, closing documents, and the disclosure form to an attorney for a complete review.