by Phoenix attorney Christopher A. Combs, partner with Combs Law Group, P.C.
Question:
At a foreclosure sale my wife and I purchased a home in the town of Maricopa. The purchase agreement with the foreclosing mortgage lender provided that the home was being sold as-is. After we moved into the home, we learned that the home had been treated for termites by the previous owner of the home. No one disclosed this prior termite treatment to us. If we would have known of the prior termite treatment we would not have purchased the home without a satisfactory termite inspection. Does the foreclosing mortgage lender have any liability to us?
Answer:
Probably not. In the sale of a home as-is, the seller only has liability if the seller knew of a material defect in the home and fraudulently concealed this material defect from the buyer. This principle is not limited to homes or real property, for example, if a used car dealer knows that a used car sold as-is has a defective carburetor, the used car dealer is liable to the buyer if the carburetor breaks down. In your situation the foreclosing mortgage lender has no liability to you unless you have some evidence that the foreclosing mortgage lender knew of the termite problem.
The above is for informational purposes only and is not intended as definitive legal or tax advice. You should not act upon this information without seeking independent legal counsel. If you desire legal, tax or other professional advice, please contact your attorney, tax advisor or other professional consultant. Reprinted with permission. Copyright 2007, all rights reserved.
3 responses so far ↓
1 Bridget // Dec 31, 2007 at 8:08 pm
we baught our house 4 years ago, the day we moved in the front room flooded, we had the whole west wall infested with bees, that end of the house had a slow leak under the bathroom floor which in turn soaked that floor and my sons floor, wood floor was replaced but not before seeing the black mold underneath. Today I found termites in my daughters room, These are just a few things we have been faced with in our “Humble abode”
2 michael frost // Mar 10, 2008 at 10:10 am
does “concealment of material fact” include painting over wall cracks, window rot areas, and prior flood damage? what about making repairs that did not meet the standard of care and claiming that a problem had been ‘fixed’? last but not least, burying a sidewalk that had been broken out to ‘fix’ a leak, burying the gas shut-off valve under a walkway, & failing to properly prep walls before applying stucco so that two years later the stucco is falling off? and this was all from a licensed real estate agent who was selling the property.
3 John Wake - Real Estate // Mar 10, 2008 at 11:49 am
michael,
You question is beyond my expertise. You may want to consider talking to an Arizona real estate attorney.
http://www.arizonarealestatenotebook.com/2008/01/09/arizona-real-estate-attorneys-lawyers/
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