Question

In an "as-is" contract, if both the seller and the broker knew that the plumbing was in a major state of disrepair, but the buyer was not told, would an action against the broker and the seller be successful if the contract contained the following statement: "Buyer to accept the property in an "as is" condition."?

a.Yes. under Johnson v. Davis, any known substantial defects in the property, which are not readily observable by the buyer, are required to be disclosed.
b.Because of the single agency relationship, the broker should have represented the buyer better.
c.The contract is a meeting of the minds and the buyer accepted the terms written.
d.No. the contract specifically states the property was being sold "as-is."

Answer 1

In an 'as-is' contract, if the seller and broker knew about major plumbing issues but didn't disclose them to the buyer, an action against them may be successful based on the case of Johnson v. Davis.

Step-by-step explanation:

In this scenario, if both the seller and the broker knew about the major plumbing issues but failed to disclose this information to the buyer, there may be grounds for a successful action against the broker and the seller, despite the contract stating that the property is being sold 'as is.'

Under the case of Johnson v. Davis, sellers have a duty to disclose known substantial defects in the property that are not readily observable by the buyer. This means that even if the buyer agreed to accept the property in its current condition, the seller and broker still have an obligation to disclose hidden defects that could significantly impact the value or safety of the property.

Therefore, option a. 'Yes, under Johnson v. Davis, any known substantial defects in the property, which are not readily observable by the buyer, are required to be disclosed,' would be the most accurate answer in this context.