Contracts
Pennsylvania's 'as-is' real estate contracts are generally enforceable. However, the as-is provision does NOT protect a seller from liability for:
ADefects discoverable upon inspection
BFraudulent misrepresentation or active concealment of known material defects✓ Correct
CConditions the buyer should have discovered through their own due diligence
DNormal wear and tear at the time of closing
Explanation
An as-is clause protects sellers from claims about unknown conditions the buyer accepted without inspection. It does NOT protect sellers who actively conceal known defects, make affirmative misrepresentations, or engage in fraud.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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