Question:
What about a listing of a property that says “AS IS”, are you still required to provide information pertaining to any defects on the property?
Answer:
All properties are sold “as is” all the time. That’s the meaning of “caveat emptor”.
The Seller has certain legal obligations to make certain disclosures, namely, known, latent material defects. The threshold for “material” is difficult and challenging.
A latent defect is material if:
- It renders the property structurally unsafe, or
- The property is uninhabitable.
Under TRESA, if an agent knows this information too, then an obligation arises to make this disclosure. But, you still require the Seller’s permission otherwise it is a breach of your fiduciary duties. If the Seller agrees, then you will need to document this. If the Seller refuses, then you will have to terminate your Listing.
Brian Madigan LL.B., Broker