Liability on Buyer for “As Is” Arizona Real Estate Sale


Recently a HUD foreclosure home was purchased in Glendale, Arizona. In the HUD contract that was agreed to, the home was purchased in “as is” condition. The HUD contract did give the buyer right to conduct inspections. The buyer previously was in the construction industry, and after spending four hours inspecting the home, it was found to have only some minor items that needed repair. However, two weeks after the home purchase closed, the roof leaked. The roofing company has estimated that the cost of repairs to the roof will be $4,800. Does HUD have any liability for this $4,800 in roof repairs?

According to real estate laws, if a home is sold in “as is” condition, a seller generally has no liability after the close of escrow for a defective roof or any other problem with the home. Therefore, HUD probably has no liability to the buyer. HUD would have liability to the buyer, however if a HUD employee or agent had knowledge of the defective roof. The reason is that the failure of a seller to disclose a known, material problem with the home is fraud. Note: A roof is generally the most expensive repair problem in a home. Therefore, the buyer of a home should have a roof warranty at the time of closing.

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