Contracts
In South Dakota, a seller who lists a property 'as-is' cannot escape liability for:
AAny defect the buyer discovers after closing
BIntentional concealment of known material defects that would constitute fraud✓ Correct
CCosmetic issues known to the seller
DNormal wear and tear on the property
Explanation
While an 'as-is' clause means the buyer accepts the property in its current condition, it does not protect the seller from fraud. Intentionally concealing known material defects to induce the buyer to purchase constitutes fraudulent misrepresentation, for which the seller remains liable.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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