Legal Tricks in Alabama Real Estate Law
No need to be an industry veteran like Isaac Toussie to know that real estate laws throughout the country will vary. It’s what makes real estate law so fascinating – as well as quite a challenge to stay on top of! Look at Alabama, for instance. There, “buyer beware” is held in a very, very high regard by the courts, such that even in cases of outright fraud buyers may have no legal recourse anyway – when that property has been bought on a strictly “as-is” basis. That’s right: Alabama case law takes the old dictum of caveat emptor very, very seriously, to the point of, in effect, allowing for otherwise illegal activity!
The Yellowhammer State takes the notion of “as-is” so literally that unless somehow superseded, the terms means exactly just that, even if the seller described the property with lies. That’s right, it’s really been upheld that misrepresentations are entirely legal under that basis.. Most anywhere else that’s just fraud and will probably lead to some jail time, but an Alabama court has ruled that as the as-is clause in the sales contract was not superseded by any other provision signed onto by both parties, the as-is clause shall be interpreted literally!
That was an ambiguous situation in the eyes of Alabama law, but the law itself in Alabama is actually not quite as simplistically draconian as the quick snapshot of the case provided here would suggest. As if evidence of a peculiar regional preference for legal loopholes of all kinds, Alabama law will only hold such a strict view towards used property, not new ones. Such as-is clauses are also superseded in cases where the misrepresentation is not obvious and potentially harmful to health and safety.
Alas for the plaintiff in Teer v. Johnston, however, while the misrepresentation was not something obvious it was not deemed harmful to health or safety, making nothing more than an inconvenience or nuisance at most. What plaintiff should have done was stipulating in the contract or the deed that pre-sale disclosures hold despite the sale!