Contracts
A Minnesota buyer purchases a foreclosure property and signs an 'as is' addendum to the purchase agreement. After closing, they discover extensive undisclosed water damage hidden behind drywall. Can the buyer pursue a claim?
ANo, the 'as is' clause eliminates all post-closing claims
BPossibly, if they can prove the damage was known and deliberately concealed by the seller✓ Correct
COnly if the damage exceeds $10,000 in repair costs
DOnly against the home inspector, not the seller
Explanation
While 'as is' clauses shift risk of unknown defects to the buyer, they do not protect sellers who knowingly concealed defects in Minnesota. If the seller deliberately hid known water damage (fraud by concealment), the buyer may have a viable claim despite the 'as is' clause. This principle applies even in foreclosure sales where the bank-seller may have had knowledge of conditions.
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