SELLERS DISCLOSURE NOTICE ELIMINATES ?AS IS? DEFENSE
Texas law requires every used home to be sold with a Sellers?
Disclosure Notice. (There are a few VERY
limited exceptions.) Once that Sellers?
Disclosure Notice is provided, then the seller is making representations about
the condition and quality of the property.
The seminal case in Texas on ?AS IS? is Prudential v. Jefferson, 896 S.W.2d 156 (Tex. 1995). In that case, a commercial buyer bought a
property which clearly and adamantly stated it was being sold ?AS IS? and which
the buyer affirmed specifically that he was not relying on any representations
about the property and was making his judgment based solely on his own
investigation. In other words, it was
nothing at all like the everyday residential real estate transaction in Texas
where the seller fills out a three page form with over 100 different check
items and questions.
The Supreme Court stated what truly separates the everyday
residential real estate case:
?A seller cannot
have it both ways: he cannot assure the buyer of the condition of a thing to
obtain the buyer's agreement to purchase "as is", and then disavow
the assurance which procured the "as is" agreement.?
Home sellers can not have it both ways. They can not say the house is sold "AS IS" and then provide a Sellers' Disclosure Notice or other representations about the house.