What legal protections do I have if I buy or sell my home “as-is”?

Selling or buying a home “as-is” might sound like it eliminates all responsibilities or rights—but that's not the case in California. Whether you're a seller hoping to avoid repair obligations, or a buyer looking for a potential deal, it's important to understand that “as-is” language in a real estate purchase agreement does not override California's disclosure laws.

State law still requires sellers to make legal disclosures to buyers, and it still provides buyers with important legal protections. Knowing what “as-is” really means—and what it doesn't—can help both avoid costly disputes.

What Does “As-Is” Actually Mean?

In California, selling a home “as-is” means the buyer agrees to take the property in its current condition, based on what they can see. But that doesn't mean the buyer gives up all legal rights. Even with an “as-is” sale, the seller can still be held responsible if they lie about the property, hide problems on purpose, or fail to tell the buyer about known issues that aren't obvious. The “as-is” clause might protect a seller from claims that they didn't do a full inspection, but it does not protect them from claims of fraud or dishonesty—whether the seller or their real estate agent is involved.

Agreeing to buy “as-is” does not mean the seller is off the hook for disclosing known defects or material facts that could affect the property's value or desirability.

For Example:

If the seller tells the buyer that the roof was replaced “just last year” when in reality it's over 10 years old and leaking. The seller made a false statement, knowing it wasn't true, to convince the buyer to move forward.

Another example is if the seller knows there was a major water leak behind the bathroom wall that caused mold, and instead of disclosing it, they repaint the wall and don't say anything to the buyer, or just don't mention it. The buyer has no way of discovering the issue without opening the wall.

Because the seller deliberately hid a serious defect, they may be liable for fraudulent concealment—even if the house is sold “as-is.”

An “as-is” clause does not protect a seller from liability for dishonesty or failure to disclose known issues. Sellers must still truthfully and fully disclose material facts that could affect the property's value or safety.

California Law Still Requires Full Disclosure

Under California Commercial Code § 2316, the "as is" clause can exclude all implied warranties, such as the implied warranty of merchantability and the implied warranty of fitness, as long as the disclosure clearly tells you what warranties are excluded.

Although the seller can limit liability through an "as is" sale, this does not extend to liability for lying about the property, hiding problems on purpose, or failing to tell the buyer about known issues that aren't obvious

Under California Civil Code §§ 1102 et seq., sellers of residential real estate (1–4 units) must complete and deliver a Transfer Disclosure Statement (TDS). The law clearly states that these “disclosure statement[s] may not be waived in an “as is” sale”

 This legally mandated form requires sellers to disclose known issues such as:

• Water damage
• Pest infestations
• Foundation problems
• Roof leaks
• Plumbing or electrical issues
• Neighborhood nuisances

This requirement applies regardless of whether the property is sold “as-is.” The only exceptions to this rule are for certain exempt sellers, such as court-appointed fiduciaries (e.g., in probate sales).

Failure to disclose known defects—even in an “as-is” sale—can lead to serious consequences.

Buyer's Duty to Investigate Still Matters

While sellers must disclose what they know, buyers are expected to conduct their own due diligence. In other words, if you're buying a house, don't take for granted the property is still in good shape. Ask to see the interior and exterior and preferably have an expert inspect it too.
That's why most purchase agreements include the right to perform:

• Home inspections
• Pest inspections
• Sewer or roof evaluations
• Appraisals and environmental reports

If a buyer waives inspections in an “as-is” deal, they take on a much higher level of risk. However, if the seller concealed a defect or made a misrepresentation, the buyer may still have a legal claim—even if they didn't discover the issue during escrow.

Red Flags in As-Is Sales

As-is language often appears in:

• Foreclosure sales (REOs)
• Investor flips
• Distressed properties
• Estate or probate sales

Buyers should be especially cautious in these situations and may want to hire a real estate attorney to review disclosures and assist with due diligence.

Legal Recourse After Purchase

If you discover serious problems with your home after closing that were not disclosed but were known (or should have been known) to the seller, you may be entitled to:

• File a lawsuit for breach of contract, negligence, or fraud
• Demand rescission (undoing the sale)
• Recover damages for repair costs or lost value

The statute of limitations may vary depending on the nature of the claim, but generally, under CCP § 337, contract-based claims must be filed within four years.

Final Thoughts

An “as-is” clause does not cancel out California's disclosure laws. If you're buying or selling a property with this language in the contract, understand that:

• You still have a right to disclosures if you are buying a property, and an obligation to disclose if you are selling a property.
• You should exercise your inspection rights
• You can take legal action if the seller concealed material facts

Get the Legal Guidance You Need

At the Law Office of Steve Lopez, APC, we help buyers review disclosures, negotiate contracts, and evaluate post-sale claims. Contact us at (562) 904-1193 if you're concerned about an “as-is” purchase—or already dealing with an undisclosed defect.