• As-Is Contracts. Understand Your Disclosure Duties
  • September 25, 2017 | Author: Robert Garcia
  • Law Firm: Marshall Dennehey Warner Coleman & Goggin, P.C. - Orlando Office
  • Sellers may opt for the as-is sales contract because they believe that doing so relieves them of their duty to disclose known defects. For many, the as-is contract is equivalent to “take it or leave it; buyer beware. However, in Johnson v. Davis, the Florida Supreme Court expanded consumer protection and held that sellers have a duty to dis-close material facts that are not readily observable and are not known to the buyer. This duty applies regardless of whether the property is sold as-is. For example, if the sellers are aware of a leak that is not currently active, they have a duty to disclose it to the potential buyer. The sellers failure to do so could subject them to liability.