As is home sales
Dear Phyllis,
We just opened escrow on a home and sent out our inspector. The inspector found numerous problems. Many repairs will cost a lot of money. The plumbing is galvanized, the roof is near the end of its life, and the electrical panel is dangerous. The list of repairs goes on. Our agent went back to the seller, but the seller refused to make any repairs or reduce the price. The seller is selling the home “as is.” Should the listing have disclosed the “as is” provision in the marketing information? 1st Time Buyer
Dear 1st Time Buyer,
This can be a tough real estate market for buyers, and I sympathize with you for finding a home and then discovering it is far from perfect. If you and the seller fail to come to terms, the seller must disclose the defects found by your inspector to any future buyer.
The seller has no obligation to make repairs or concessions that you did not include in your purchase contract. When you and your Realtor prepared the offer, you likely requested that the seller complete required government retrofit items. Some cities, such as Pasadena, require a point-of-sale code compliance inspection, which the seller must complete. In most other Los Angeles real estate transactions, sellers sell the property “as is.”
Consider a few questions. Did the seller provide disclosures? Did those disclosures identify any plumbing issues? Can you run the dishwasher and take a shower at the same time without problems? I purchased my home more than fifteen years ago, and it still has galvanized plumbing, yet it has not caused major issues. Did the seller disclose any roof leaks?
The seller must disclose all known defects under the law. However, the absence of copper plumbing or a new roof does not automatically qualify as a defect. If the seller misrepresented the property condition or failed to disclose known issues, you may have grounds to recover out-of-pocket costs such as inspection and appraisal fees in small claims court.
I am not a real estate attorney, but I would assume that since you haven’t closed escrow, you don’t have any other damages.
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