| Most homes are sold 'as is." In fact, the
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| | If the problem has been disclosed by the
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| form Residential Purchase Agreement used
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| | Seller, the Buyer has no cause to
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| by most brokers has a pre-printed 'as is'
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| | complain at a later date. He could have
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| clause stating that the property is sold
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| | walked away from the deal or
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| 'as is' without any warranty and in its
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| | renegotiated. However, if the Seller
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| present physical condition. In a recent
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| | knew about the problem but did not
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| purchase, I was asked by the seller to
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| | disclose it, the Buyer may have a claim
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| also sign a special lawyer-prepared
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| | against the Seller.
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| document which reiterated (in a full page
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| | In a recent case, our client purchased a
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| of legalese) that the property was being
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| | multi-million dollar home only to find
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| sold 'as is.' My first instinct was to
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| | that the winter rains brought extensive
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| ask: What is wrong with this property and
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| | leaking. The professional inspection had
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| am I losing all of my rights by agreeing
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| | noted that the roof should be maintained
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| to buy it 'as is?
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| | yearly and would have to be replaced in
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| There is no clear-cut answer but a quick
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| | three years. However, it had not
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| explanation of the law should put your
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| | uncovered any leaking, and the Seller
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| mind at ease when buying a property 'as
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| | made no mention of roof leaks in the
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| is.'
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| | Disclosure Statement. However, the
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| What is wrong with This Property?
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| | gardener and housekeeper, both of whom
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| As the Agreement notes, 'as is' means
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| | had worked for the Seller, remembered
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| that the Seller is not making any
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| | numerous roof leaks while the Seller
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| warranties about the condition of the
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| | lived in the house.
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| property. Selling 'as is' does not
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| | The Seller argued that (1) the house was
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| necessarily mean that anything is wrong
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| | being sold 'as is' and (2) the inspection
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| with the property. The Buyer, however,
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| | put the Buyer on notice that the roof was
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| should have a professional inspector look
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| | in bad shape, thereby absolving her of
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| at the property and accompany the
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| | any liability. In any event, she also
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| inspector as he examines the property.
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| | claimed to have repaired the leaks and
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| The inspector's trained eye will catch
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| | thought that they had been fixed.
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| items that you may not notice.
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| | While the inspector may have noted the
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| Am I losing All of My Rights?
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| | limited life of the roof, the Seller was
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| If it turns out that a problem arises
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| | still required to disclose the leaking.
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| with the property after the deal has been
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| | The leaks were a material fact affecting
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| closed, what remedy does a Buyer have in
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| | the value (and habitability) of the home.
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| an 'as is' sale? The 'as is' clause
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| | In this case, neither the Buyer nor the
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| works in concert with other laws, most
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| | inspector could have discovered the leaks
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| notably California Civil Code §1102.
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| | in a visual inspection of the property.
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| This section requires that the Seller
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| | (Interestingly, because of liability
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| provide the Buyer with a detailed Real
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| | issues, professional inspectors often
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| Estate Transfer Disclosure Statement.
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| | will not allow the Buyer to follow them
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| The Disclosure Statement addresses almost
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| | up to the roof, at least not on the
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| every conceivable defect with the
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| | inspector's ladder!) The Seller settled
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| property-from the presence of
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| | with the Buyer, and the roof was
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| contaminants to lawsuits against the
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| | replaced.
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| property. In general, the Seller is
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| | So, rest assured, although you may be
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| under a duty to disclose any and all
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| | buying the house 'as is,' the Seller is
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| facts materially affecting the value or
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| | not excused from disclosing material
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| desirability of the property which are
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| | problems in the Disclosure Statement.
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| known only to him and which he knows are
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| | And in the event the Seller fails to make
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| not known to, or reasonably discoverable
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| | these required disclosures, the Buyer has
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| by, the Buyer. Even loud or obnoxious
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| | a legal remedy, despite the 'as is'
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| neighbors must be disclosed.
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| | provisions of the Agreement.
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