Nondisclosure in Real Estate – Full Disclosure is Still Required Regardless of Any “As-Is” Provision in a Purchase Agreement

Regardless of any “As-Is” statements made in a real estate sales agreement, sellers and seller’s agents have an express duty to disclose any concealed or known material facts that are unknown or not observable to a buyer.  In a real estate sale, “As-Is” indicates the buyer is buying the property in the condition that is visible or observable to the buyer. A seller or a seller’s agent that fails to disclose all material facts regarding the condition of the property unknown to a buyer, however, are still liable for fraud resulting from their nondisclosure.  In turn, the California Supreme Court has definitively established that a seller cannot use an “As-Is” statements to execute a fraudulent transaction. Herzog v. Capital Co. (1945) 27 Cal. 2d 349