"As-Is" Doesn't Mean No Disclosures: What California Sellers Still Must Reveal

Buying an "as-is" property? The seller still has legal obligations to disclose known defects. Here's what that means for you.

You found a listing marked "sold as-is." Maybe it's priced below market, maybe it's an estate sale, maybe the seller just doesn't want to deal with repair negotiations. Whatever the reason, many buyers assume "as-is" means the seller doesn't have to tell you anything about the property's condition.

That's wrong.

What "As-Is" Actually Means

• The seller won't make repairs. You're agreeing to buy the property in its current condition. Negotiating for repair credits is generally off the table (though not always impossible).
• The seller still must provide a TDS. California Civil Code §1102 requires disclosure regardless of as-is status. The seller must complete the Transfer Disclosure Statement honestly.
• You still have the right to inspect. An as-is sale doesn't waive your inspection contingency (unless you specifically agree to waive it in the contract).
• You can still walk away. If the inspection reveals problems you can't accept at the sale price, you can cancel during the contingency period.

Why As-Is Sales Require Extra Scrutiny

Properties sold as-is often have more problems than average. The seller may be choosing as-is specifically because the needed repairs are extensive and they don't want to deal with them. This is fine — as long as the defects are disclosed and reflected in the price.

The danger is when as-is is used as a shield for non-disclosure. Some sellers (and their agents) mistakenly believe that as-is eliminates their disclosure obligations. It doesn't, and courts have consistently upheld this in California.

How to Protect Yourself

1. Always get an inspection. This is even more important for as-is properties. You need to know exactly what you're buying.
2. Read the TDS with extra care. Look for vague answers, excessive "Don't Know" responses, and blank sections. These are more concerning on an as-is property.
3. Cross-reference the inspection against the disclosure. If the inspection finds problems the seller didn't disclose, you have leverage — even on an as-is deal.
4. Price accordingly. Since the seller won't repair, make sure your offer reflects the true cost of the property including all needed repairs.
5. Consider walking away. If the inspection reveals problems beyond what was disclosed and beyond what the price accounts for, canceling during contingency is always an option.

Estate Sales and Probate

Many as-is sales are estate sales where the seller (an executor or trustee) may genuinely not know the property's condition because they never lived there. California provides limited exemptions from the TDS for certain trust and probate sales — but the seller must still disclose anything they do know, and other disclosures (like the NHD) still apply.

For estate sales, the inspection becomes even more critical because the disclosure may have limited information. Don't rely on the disclosure alone — let the inspection be your primary source of truth.