A seller sells a property "as is" but conceals a defect. Who is liable for misrepresentation?

In a scenario where a seller sells a property "as is" but conceals a defect, liability for misrepresentation can extend to both the seller and the licensee. The "as is" clause indicates that the buyer is accepting the property in its current state, but it does not absolve the seller from the duty to disclose known defects. When a seller actively conceals a defect, this act of concealment can be viewed as misrepresentation, rendering the seller liable for failing to disclose the truth.

Additionally, licensees, such as real estate agents, have a professional responsibility to disclose material facts about the property to potential buyers. If the licensee is aware of the defect and fails to inform the buyer or, worse, participates in the concealment, they too can be held liable for misrepresentation. The reasoning is based on the idea that both parties have a level of accountability in the transaction; the seller is obligated to disclose known issues, while the licensee must remain transparent about relevant property information.

This case underscores the principle that both the seller's intentional concealment of defects and the licensee's duty to inform buyers create a situation where both parties can face liability for misrepresentation.