Legal Question in Real Estate Law in California

Re: undisclosed mildew by seller in home I purchased

The answer to this question may depend on what Province you are in. My answer originates from BC.

"As is" generally means what it says and thrusts the burden on purchasers to make sufficient investigations to satisfy themselves that the property is in an acceptable condition. The seller is generally not obligated to make any representations positive or negative about the state of the property. One exception to this is that a seller cannot actively conceal a defect. The following questions are pertinent: Did the seller know about the defect? Did the seller do or say anything that would have dissuaded a purchaser from making further investigations? Would prudent investigations by the purchaser have revealed the defect? Was the musty odour present when you inspected the property? Was the slope of the cement noticeable such that a building inspection should have revealed it? If so the Court might find that this was sufficient indication that the purchaser should have investigated further.

If the Seller were found liable by a Court, the remedy is normally a damage award equivalent to the reasonable cost of repairing the defect unless it is for some reason wholly out of proportion to what was paid for the property.