Brief Fact Summary.
The Donnelly’s sued the Taylors for misrepresentation after the Taylor’s sold the Donnelly’s a house that they did not disclose was infested with bats.
Synopsis of Rule of Law.
A seller does not have to disclose known defects if the contract agrees to sell the property as is.
An as is clause cannot be relied upon to bar a claim for fraudulent misrepresentation or fraudulent concealment.View Full Point of Law
The Taylors sold their house to the Donnelly’s “as is,” and no defects turned up after inspection of the property. After moving in, the Donnelly’s found that the house was infested with bats and suspected that the Taylors knew of the infestation. The Donnelly’s sued the Taylors for breach of contract and misrepresentation.
Whether a seller has to disclose known defects if the contract agrees to sell the property as is?
No. Because the Taylors did not conceal the existence of the bats or did not misrepresent the existence of the bats, summary judgment is granted in favor of the Taylors.
A seller may not actively misrepresent the value or condition of the property, but in Ohio, the burden is on the purchaser to discover the defects.