'As Is' Addendums to Contract Don't Absolve Owner for Negligent, Intentional Acts

WICHITA, Kan. - A federal judge declined to dismiss a homebuyer's fraud claims against Chase Manhattan Mortgage Co., saying that 'as is' agreements to a real estate contract don't protect the seller from intentional wrongdoing. Larson v. Safeguard Properties Inc., et al., No. 05-1005-WEB (D. Kan.).

Erika Jo Larson and Jerod Larson signed a contract on May 4, 2004, to purchase a house from Chase. The couple also signed two addendums: one, agreeing to purchase the property 'as is,' and a second, acknowledging that the property may have mold, agreeing to use due diligence in dealing with it, and absolving …