Buyers looking to purchase real property often need to balance the condition of the property with the asking price. A lower price may be indicative of a need to make significant repairs to the property. Buyers may need to review disclosure documents carefully, hire a competent inspector and make offers that reflect the condition of the property.
In some cases, sellers may list their homes in “as-is” condition. Does listing the property “as-is” without any implied warranty absolve the seller of their obligation to make disclosures to prospective buyers?
Sellers must provide accurate disclosures
Some property defects are open and obvious. People may notice cracked drywall and outdated electrical outlets as they tour the home. Other defects may be latent. They are harder to identify before taking possession of the property.
Sellers have a legal obligation to disclose any known issues with the residence, including any latent defects that could be difficult to identify during a cursory inspection. They cannot simply indicate that the condition of major home systems is unknown.
An as-is listing does not protect them from legal and financial responsibility if the buyer later discovers that they intentionally hid known issues with the property. Sellers who misrepresent the condition of residential real estate may be responsible for the financial impact of their dishonesty.
Buyers preparing to make offers or seeking compensation after they discover latent defects often need assistance. They may be able to take legal action against sellers who failed to disclose known issues with a property. Learning more about property defect disclosures and other regulations that apply to residential real estate transactions can help buyers assert themselves and hold sellers accountable.