If Sale is “as is,” Seller Must Reveal Known Problems

  Question: We purchased a home “as is.” We failed to discover until after close of escrow that tree roots had partially obstructed our sewer line. The cost to repair the sewer line will be at least $2,500. The contractor that we are hiring to do the repairs said that the seller had to know of this problem. Did we waive any claim against the seller by purchasing the property “as is”?

  Answer: If the seller knew of the problem and failed to disclose this, you would have a claim against the seller for the cost of repairs. Selling a home or any property “as is” generally eliminates any seller warranties. “As is” does not protect a seller, however, from the fraudulent act of failing to disclose a known material defect.