Real Estate Litigation
Transactions and Title
Most states require residential sellers to disclose known material defects on a prescribed form covering structural, mechanical, environmental, and legal conditions. Disclosure obligations generally cover known conditions rather than requiring inspection.
As-is sales do not eliminate disclosure duties in most states.
Alternative Names:
Property Disclosure Statement, Seller's Disclosure
Why it Matters?
The known-condition limitation is the defense, since a seller who did not know of a defect has no disclosure obligation regardless of how significant it proves. Establishing what the seller actually knew, through repair records, prior insurance claims, and communications, is the analysis. As-is clauses do not excuse affirmative misrepresentation or failure to disclose known defects in most jurisdictions, which is a common misunderstanding on both sides.
Frequently Confused with
Related terms
Frequently asked questions
Does an as-is clause eliminate disclosure duties?
What establishes seller knowledge?
