Legal Updates

A seller of an apartment must disclose to the purchaser all information about hidden defects in the apartment even in an “AS IS” sale

August 12, 2020

An apartment seller stated in the contract that there are no defects in the apartment, but about a month after handing over possession in the apartment to the purchaser, many humidity defects were discovered.
The Court held that the seller must compensate the purchaser because she was aware of the humidity issues but did not disclose it to the purchaser. The duty of disclosure imposed on an apartment seller is to list before the purchaser the existing defects in the apartment, including the hidden defects that the purchaser could not detect without a professional examination and any other relevant information about the apartment she should have known about. Here, although the apartment was sold AS IS the seller was aware of humidity issues that had previously been in the apartment but did not disclose it in the contract and stated that she is not aware of any defect or hidden defect in the apartment, including leaks or humidity.