Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 9 years ago on . Most recent reply

User Stats

146
Posts
120
Votes
Ryan Vienneau
  • Investor
  • Stillwater, NY
120
Votes |
146
Posts

Is agent obligated to disclose issues with "as-is" properties?

Ryan Vienneau
  • Investor
  • Stillwater, NY
Posted

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
business profile image
Veno Properties LLC
4.4 stars
123 Reviews

Most Popular Reply

User Stats

107
Posts
111
Votes
Ted L.
  • Investor
  • Schenectady, NY
111
Votes |
107
Posts
Ted L.
  • Investor
  • Schenectady, NY
Replied

I will preface this by saying that I don't know what the legal answer is. I have bought as-is properties and the bank says that they take no responsibility for the condition whatsoever. They don't complete the property disclosure because they have not inhabited the property.

I'm curious about the neighborhood you would buy a two family in Schenectady. This may have been a blessing in disguise.

Loading replies...