In Paul Spradley v. Denise O. Perez and Berchmans J. Perez, III (2022-CA-0716, La. App. 1 Cir. 2/16/23), the Louisiana First Circuit Court of Appeal addressed whether a home buyer who signed an “as-is” clause and waived redhibition could recover over $100,000 in foundation repair costs discovered years after purchase. The court ruled that the buyer could not recover, even though the sellers had checked the wrong box on the property disclosure form, because the buyer had actual knowledge of foundation issues before closing and explicitly waived his redhibition rights.
Case Details
The Purchase: In 2017, Paul Spradley purchased a home in Covington, Louisiana for $285,000. Prior to the sale, a home inspector identified foundation issues.
Pre-Sale Negotiations: After receiving the inspection report, Spradley obtained a repair quote for approximately $25,000 and requested that the sellers reduce the purchase price accordingly. The sellers agreed to a $10,000 price reduction. The sellers also informed Spradley that the foundation had been previously leveled, though they failed to properly disclose foundation defects in the written property disclosure statement.
Discovery of Additional Defects: Four years after closing, Spradley discovered additional foundation problems and spent over $100,000 on repairs, roughly 35% of the original purchase price.
Legal Action: Spradley filed a petition for redhibition and damages, claiming the sellers failed to properly disclose the foundation defects in good faith. The sellers filed a motion for summary judgment to dismiss the case.
The Ruling: The district court granted summary judgment in favor of the sellers, and the Louisiana First Circuit Court of Appeal affirmed. The court found that despite the disclosure form error, the sellers had effectively disclosed the foundation issues through oral communication. More importantly, the court held that Spradley’s pre-purchase knowledge of the defects, combined with his signing an “as-is” clause waiving redhibition, barred his recovery.
When you sign an “as-is” clause and waive redhibition on a Louisiana home purchase, you may lose the right to recover repair costs, even for defects that weren’t fully disclosed. A 2023 Louisiana First Circuit Court of Appeal ruling in Paul Spradley v. Denise O. Perez and Berchmans J. Perez, III reinforced this principle when a buyer was denied recovery of over $100,000 in foundation repairs.
At Melancon, Rimes & Daquanno, we regularly advise clients on the legal implications of real estate transactions. This case illustrates why buyers must carefully evaluate property disclosures and understand exactly what they’re waiving before signing.
What Is Redhibition?
Redhibition is a Louisiana legal doctrine that allows buyers to return defective property or seek a reduction in the purchase price. Codified in Louisiana Civil Code Articles 2520-2548, the law provides that sellers warrant buyers against defects that existed at the time of sale.
However, Louisiana law also limits this protection. Under Article 2521, sellers owe no warranty for defects known to the buyer at the time of sale or for defects “that should have been discovered by a reasonably prudent buyer.” This provision proved central to the Spradley outcome.
What Happened: Foundation Defects Discovered After Purchase
In Spradley v. 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, a home 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. However, they did inform the buyer that the foundation had been previously leveled.
Four years after the sale, the plaintiff discovered additional foundation defects and spent over $100,000 on repairs, roughly 35% of the original purchase price. 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, a request for the court to rule in their favor without a full trial, seeking to have the plaintiff’s lawsuit dismissed with prejudice.
Court Ruling: Redhibition Waiver Upheld in Louisiana
The Louisiana First Circuit Court of Appeal affirmed the district court’s dismissal of the plaintiff’s claims. This appellate decision demonstrates how Louisiana courts interpret redhibition waivers when buyers have pre-purchase knowledge of defects.
The court concluded that the sellers disclosed all known issues with the home and advised the buyer that the foundation had been leveled. The buyer was therefore 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, unambiguous language. The home was sold “as is,” regardless of apparent or hidden defects. Mr. Spradley had waived his right to a refund of any portion of the purchase price due to such defects.
Despite the sellers checking the wrong box on the disclosure form, the court found effective disclosure occurred through oral communication about prior foundation leveling. The buyer’s pre-purchase inspection, receipt of foundation repair quotes, and price negotiation established actual knowledge that barred redhibition claims.
What This Means for Louisiana Home Buyers and Sellers
When buying or selling real estate, it is important to properly disclose to the buyer any known defects in the property disclosure statement. Failure to do so could make the seller liable for defects. Under Louisiana law, sellers who know of defects but fail to disclose them may be liable for the return of price with interest, reimbursement of expenses, damages, and reasonable attorney fees.
Buyers must carefully inspect for defects at the time of the sale. If defects are discovered, buyers should carefully consider whether to buy a property “as is” and with a waiver of redhibition. This case is a good example that proceeding with knowledge of defects, even when disclosure forms contain errors, can forfeit your right to future recovery.
Key Takeaways for Louisiana Real Estate Transactions:
- Sellers must disclose all known defects in the property disclosure statement
- Buyers should conduct thorough independent inspections before closing
- Signing an “as-is” clause with a redhibition waiver may eliminate your right to recover repair costs
- Even if disclosure forms contain errors, courts may find the buyer had sufficient notice through other means
- Professional inspection reports that recommend further evaluation put buyers on notice—ignoring such recommendations can bar future recovery
Have Questions About a Louisiana Real Estate Transaction?
If you’re buying or selling property in Louisiana and have concerns about disclosure requirements or contract terms, our attorneys can help you understand your rights. Contact Melancon, Rimes & Daquanno at (225) 303-0455 for a consultation.