‘As Is’ Agreement Doesn’t Protect Seller Hiding Knowledge of Defect

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January 9th, 2017

 ‘As Is’ Agreement Doesn’t Protect Seller Hiding Knowledge of Defect

  Question: We purchased a home in Tempe from a cantankerous old man who would only sell his Tempe home “as is.” Although we did a thorough inspection we failed to discover until two months after close of escrow that tree roots had partially obstructed our sewer line. The cost to repair the sewer line will be at least $2,500. The plumbing contractor that we are hiring to do the repairs said that the seller must have known of this problem with the sewer line. Did we waive any claim against the seller by purchasing the property “as is”?

  Answer: If the seller knew of the problem with the sewer line and failed to disclose this problem to you, you would have a claim against the seller for the cost of repairs. Selling a home “as is” generally eliminates any warranties in the sale of the home, but does not eliminate the liability of a seller of a home for failing to disclose a known material defect such as a blocked sewer line.

Published in Nondisclosure