Question: We recently purchased a HUD foreclosure home in Glendale. In the HUD contract we agreed that we were purchasing the home in “as is” condition. The HUD contract did give us the right to conduct inspections. My husband used to be in the construction industry, and after spending four hours inspecting the home, he found only some minor items that needed repair. Two weeks after we closed on the purchase of our home, however, the roof leaked. The roofing company has estimated that the cost of repairs to the roof will be $4,800. Does HUD have any liability for this $4,800 in roof repairs?
Answer: Probably not. According to real estate law, if a home is sold in “as is” condition, a seller generally has no liability after the close of escrow for a defective roof or any other problem with the home. Therefore, HUD probably has no liability to you. HUD would have liability to you, however if a HUD employee or agent had knowledge of the defective roof. The reason is that the failure of a seller to disclose a known, material problem with the home is fraud.
Note: A roof is generally the most expensive repair problem in a home. Therefore, the buyer of a home should have a roof warranty at the time of closing.