Elliot Wagonheim: There doesn't necessarily have to be a disclosure that the vent in the second floor bedroom is faulty, or that there is a flickering light in the basement bathroom. But most jurisdictions require disclosure of certain things, structural elements, major problems.
Peter Holland: Now let's assume that all sellers are 110% honest, and they told you of every defect they knew about. They might not know that there's termites in the process of infesting. They might not know that up in the crawl space of their attic there is a leak in the room.
Steve Lovejoy: Look at what it is you're buying very carefully, and inspect what it is you're buying very carefully. You should exercise the option to get a home inspection, no question about it.
Peter Holland: Assuming good faith, and honesty on everybody's part, you still want to have a home inspector who can look through it with objective eyes, who is trained in inspecting homes, or trained as a contractor to identify those things that maybe are not known to the seller.
Steve Lovejoy: Make sure that the home inspection is done on time in terms of the contract, usually there's a time limit. If you don't do the home inspection, then you can't get yourself into a situation where you're obligated to buy the house even though there are repairs that are needed.
Elliot Wagonheim: Now what you have to watch out for in certain contracts is a contract that says, you the purchaser are buying this As Is?
Steve Lovejoy: And I am not giving you any warranties.
Peter Holland: This is the price. This was my grandmother's house, it's on the farm. There might be all kinds of problems, and if you want it, you buy it As Is.
Elliot Wagonheim: And in that case, certain jurisdictions, use that As Is contract to override a duty to disclose, and will not hold the seller liable.
Irwin Kramer: You are really assuming all of the risk in an As Is contract.
Steve Lovejoy: It's whatever the market will bear, and it's your risk.
Irwin Kramer: So if you see those two little words, you got to keep two big words in mind, Caveat emptor.
Elliot Wagonheim: Caveat emptor means, buyer beware.
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