Disclosure question
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Disclosure question
We sold a house in 4/2016 claiming a new roof on the disclosure which we put
on. The buyer comes back 2 years later and said we lied and wants us to
compensate them They had an inspection and signed an ‘as is’ contract never
mentioning anything. What is my obligations?
Asked on July 14, 2016 under Real Estate Law, North Carolina
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If the disclosure contained an intentional factual inaccuracy, you can be sued for fraud. An "as is" contract will not protect you from a knowingly falsehood. So if you didn't place a new roof on the house, you could be held liable. However, if you can offer proof by way of receipts, pictures, etc. you could offer an defense to this claim; addionally their inspection report might actually be of help to you, depending on just what it states regarding the age/condition of the roof. At this point, see if suit is actually filed and if it is, work with your attorney on all of this.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
First of all, until and unless actually sued, you don't have to do anything: keep their letters (and your own documentation, of course), etc. for reference, but you don't need to even respond.
If they do try to sue, even though they signed an "as is" contract, IF they could show that you lied (that is, committed fraud) about the age, etc. of the roof, they could sue you on that basis: an "as is" contract does not allow you to knowingly lie or protect you from having committed fraud. But to win, they'd have to prove that you did lie about the roof's age.
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