The Facts: I recently purchased a house. In my contract of sale it stated that the house was being sold "AS IS." However, in the contract the seller represented that the roof was free of leaks. When I took possession of the house, I found that the roof leaked.
The Question: Can I sue the seller to recover the money I paid to fix the roof?
The Answer: Despite the "AS IS" language in the contract, you can sue to recover the cost of repairing the roof. Although you cannot sue the seller for breach of contract, you can sue for fraud if you can show that the seller knew about the problem before the closing. Generally when you purchase property, it is your responsibility to inspect the property and determine if there are problems that need to be addressed. The seller is not obligated to tell you about a leaky roof unless you specifically ask about the roof. If a seller knows about a problem but denies its existence when questioned, he takes the chance that he may be sued for fraud.
In your case, despite the fact that the contract provided that the house was being sold "AS IS," the seller made a specific representation about the condition of the roof. If the seller had not represented that the roof was leak-free, you would not have a claim against him. However, by making the representation, the seller negated the "AS IS" language with respect to the roof only. It is important to note that if you sue to recover the cost of fixing another problem with the house, your case will be dismissed since the seller did not make any representations about other aspects of the house.
The lesson to be learned is that honesty is the best policy. As a seller, if you are asked a question, you should answer as truthfully as possible and avoid making any representations in the contract that are not accurate.