Does full disclosure and material fact apply even when it is an 'As is' contract?
Full Question:
We purchased a $50,000 mobile home 'as is'. After 6 months of using the air conditioning it started giving us problems. It was discovered when the previous company (their business is selling mobile homes and spaces in parks) painted the interior they operated the air conditioning unit and paint had clogged up the coils. Also, when they moved the unit the tray under the coils cracked the entire length of the tray and leaked for a long time (prior to our purchase) as there
is a lot of rust and moisture is dripping on the electrical wires. We had to turn the unit off to be safe. My question is - does full disclosure and material fact apply even when it is an 'As is' contract? We would not have purchased the unit as is if they had disclosed the
problem with the AC unit. Because of the age of the unit in order the replace the furnace where the coils are, we may also have to replace the entire AC unit. About $7000.
03/09/2009 |
Category: Contracts |
State: Arizona |
#15494
Answer:
As-is is a term used in warranty law to disclaim the seller's liability for faults in the item sold. The buyer accepts the item in the present condition, whether the faults are apparent or not. "As-is" language clarifies that no written or verbal warranties were made to the buyer and is used to protect the seller. However, the seller cannot misrepresent the item or use fraud to induce the sale. In most states, "as-is" home sellers are now required to disclose to their buyers all
known defects in the residence. It is recommended that buyers in an as-is sale inspect the item carefully, such as hiring a professional home inspector when purchasing an as-is home.
