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Updated almost 9 years ago,
Is agent obligated to disclose issues with "as-is" properties?
Question for New York agents:
I know that an agent is required to disclose known issues with properties to a buyer for conventional sales. Does that same rule apply to "as-is" foreclosure properties?
Three weeks ago I found a foreclosure 2F in Schenectady NY that was in really good shape, needed updating and cosmetics but was overall a great deal. There were multiple offers, we offered list price, cash offer, with an inspection contingency. Before we could even get the inspector in, the temperature hit 15 below zero one night after we made the offer, and although the property was winterized I found at least 3 places in the basement where the pipes split that night.
We called the agent to say the pipes had burst since making our offer and we would either need to renegotiate or need more time to assess the damage since our contingency period was up in 2 days. She basically told me that nothing had changed, the property is being sold as-is and the pipes were already like that and that there would be no negotiating or extension, take it or leave it. We told her fine, rescind our offer, which was disappointing because I don't think the pipe issue was catastrophic, but I certainly wasn't going to keep our original offer on the table.
So my first issue with this agent is she basically inferred that we were either lying about the pipes bursting in order to negotiate or that we just hadn't noticed it before, which was fairly offensive to me since one of them burst while I was actually standing in the basement and I watched the water spray out of the pipe with my own eyes. More importantly, I didn't think to mention it at the time but if there was legitimately an issue she knew about regarding the pipes, isn't she legally obligated to disclose that?
Furthermore, my guess is that they'll go back to the next best offer that looked at the property prior to the pipes bursting a few weeks ago, accept their offer, and try to screw that poor sucker over if they don't go and reinspect. Are they obligated to tell THAT guy the pipes burst since he made his offer?
- Ryan Vienneau