A purchase agreement for a property in Beckley, West Virginia includes a clause stating: 'Buyer acknowledges that the property is being sold in its present condition, and seller makes no warranties as to the condition of the property.' The buyer later discovers significant foundation damage that the seller knew about but did not disclose. Under West Virginia law, which statement best describes the effect of this 'as-is' clause?
Correct Answer
A) The as-is clause does not shield the seller from liability for known material defects that were deliberately concealed from the buyer
Under the West Virginia Residential Property Disclosure Act (W. Va. Code §§ 36B-1-1 et seq.) and general fraud principles, an 'as-is' clause does not protect a seller who deliberately conceals known material defects. The seller's duty to disclose known material defects is a statutory obligation, and an as-is clause cannot be used as a shield for fraudulent concealment or intentional misrepresentation. The buyer may have grounds for rescission or damages based on the seller's knowing concealment of the foundation damage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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