A person purchased an apartment via a tender on “AS IS” terms and after seeing it. After the purchase of the apartment and its renovation it was discovered that the apartment is uninhabitable due to severe water and flooding damage.
The Court held that one must disclose any material information of the property to the purchaser before the purchase. The publisher of the tender determined in the past that the property is not habitable because of its condition, but this issue was not disclosed in the tender documents. Although the purchaser knew about the moisture and water issues it does not preclude its right to compensation because essential information was withheld which caused damage to the purchaser. The purchaser chose not to return the apartment to its owner and thus the Court rejected the demand to return of the purchase money.