In Paul Spradley v. Denise O. Perez and Berchman Perez, 2022-CA-0716 (La.App. 1 Cir. 2/16/23), the plaintiff purchased a home in Covington, Louisiana for $285,000. Prior to the sale, an inspector noted an issue with the foundation. The plaintiff obtained a quote for approximately $25,000 to make the necessary repairs. The plaintiff requested that the sellers reduce the sales price accordingly. The sellers agreed to reduce the sales price by $10,000 only. The sellers did not disclose any foundation defects in the property disclosure statement.
Four years after the sale, the plaintiff discovered foundation defects and spent over $100,000 on repairs. The plaintiff filed a petition for redhibition and damages, claiming that the sellers did not properly disclose the foundation defects in good faith at the time of the sale.
The sellers filed a motion for summary judgment, seeking to have the plaintiff’s lawsuit dismissed with prejudice. The trial court granted the defendants’ motion for summary judgment. The trial court noted that the sellers checked the wrong box on the disclosure statement, yet they nonetheless informed the plaintiff about a prior leveling of the house. The trial court concluded that the plaintiff had sufficient notice of the foundation issue, yet signed an express waiver of redhibition. The trial court also found that the sellers did not know of or failed to disclose any hidden defect prior to the sale.
Ruling
The Louisiana First Circuit Court of Appeal affirmed the district court’s dismissal of the plaintiff’s claims. The appellate court concluded that the sellers disclosed all known issues with the home and advised the buyer that the foundation had been leveled. Accordingly, the court concluded that the buyer was aware of the defects to the foundation prior to his purchase of the home when he waived his right to redhibition. The court also found that the act of sale contained clear and unambiguous language that the house was being sold “as is,” regardless of apparent or hidden defects, and that Mr. Spradley waived the right of the return of some or all of the purchase price because of such defects.
Conclusion
When buying or selling real estate, it is important to properly disclose to the buyer of any known defects in the property disclosure statement. Failure to do so could make the seller liable for defects. Moreover, the buyer must carefully inspect for defects at the time of the sale. If defects are discovered, the buyers should carefully consider whether to buy a property “as is” and with a waiver of redhibition. This case represents a good example that “buyer beware” remains strong in Louisiana courts.