Q: Am I covered

I put mobile home under contract with a rent to own buyer with owner financing agreement. Contract states (as is) what you see or don't see is what you get. Buyer calls me and says the electric is not working in the living room & 1 of bedrooms as they were operating during and after Reno was completed with the home. I offered buyer a good faith monetary credit gesture to mortgage payment as to why it was not working. Initially it was accepted but then declined as they state cost may be more than what I offered. If buyer decides to bring a petition in court, would I be covered without being liable for any cost or repairs.?

1 Lawyer Answer
James L. Arrasmith
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  • Landlord Tenant Lawyer
  • Sacramento, CA

A: Based on the information you provided, it seems that the buyer may have a case against you, despite the "as is" clause in the contract. Here's why:

1. Implied warranties: Even with an "as is" clause, there are implied warranties that the property is habitable and fit for its intended purpose. If the electrical issues make the home uninhabitable or unsafe, the buyer may argue that you breached these implied warranties.

2. Disclosure: As the seller, you have a duty to disclose any known material defects in the property. If you were aware of the electrical issues and did not disclose them to the buyer, they could claim that you misrepresented the property's condition.

3. Timing of the issue: If the electrical problems arose after the renovations were completed and before the sale, the buyer might argue that the issues should have been detected and fixed before the sale.

However, your case may be strengthened by:

1. The "as is" clause in the contract, which could limit your liability if the court finds that the buyer knew or should have known about the electrical issues.

2. Your good faith offer to provide a monetary credit to the buyer, which shows that you attempted to resolve the issue amicably.

Ultimately, if the buyer decides to take legal action, the outcome will depend on the specific facts of the case and the applicable laws in your jurisdiction. It's advisable to consult with a local real estate attorney to assess your potential liability and develop a strategy to defend yourself if necessary.

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