The As-Is Provision in a Purchase Agreement Still Requires Full Disclosure

“As-Is” Real Estate Sales – Sellers and Seller’s Agent are always under a duty to disclose concealed or known material facts that are not known or observable by the buyer.  A property sold “As-Is” means that the buyer is buying the property in the condition that is visible or observable to the buyer. Therefore, when the Seller or the Seller’s agent fails to disclose all material facts regarding the condition of the property that are unknown to the buyer, the “As Is” provision will not relieve the Seller or Seller’s Agent fraud liability arising from the nondisclosure.  The California Supreme Court has made it clear that a seller cannot contract his/her way out of a fraudulent transaction. Herzog v. Capital Co. (1945) 27 Cal. 2d 349.

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