by Phoenix attorney Christopher A. Combs, partner with Combs Law Group, P.C.


At a foreclosure sale my wife and I purchased a home in the town of Maricopa. The purchase agreement with the foreclosing mortgage lender provided that the home was being sold as-is. After we moved into the home, we learned that the home had been treated for termites by the previous owner of the home. No one disclosed this prior termite treatment to us. If we would have known of the prior termite treatment we would not have purchased the home without a satisfactory termite inspection. Does the foreclosing mortgage lender have any liability to us?


Probably not. In the sale of a home as-is, the seller only has liability if the seller knew of a material defect in the home and fraudulently concealed this material defect from the buyer. This principle is not limited to homes or real property, for example, if a used car dealer knows that a used car sold as-is has a defective carburetor, the used car dealer is liable to the buyer if the carburetor breaks down. In your situation the foreclosing mortgage lender has no liability to you unless you have some evidence that the foreclosing mortgage lender knew of the termite problem.

The above is for informational purposes only and is not intended as definitive legal or tax advice. You should not act upon this information without seeking independent legal counsel. If you desire legal, tax or other professional advice, please contact your attorney, tax advisor or other professional consultant. Reprinted with permission. Copyright 2007, all rights reserved.