Oral Representations in an “As-Is” Sale

Attorney Frederick M. Lombardi provides the following update on a recent decision involving an “as-is” sale of real estate:

In an “as is” sale by a receiver, where the receiver orally represented to the purchaser plaintiff that the foreclosed car wash had been properly winterized, the plaintiff was permitted to offer parole evidence regarding the representation where after closing it was discovered that the car wash was not properly winterized.  The Third District Court of Appeals held that where a party seeks to prove fraud in the execution or inducement of a written agreement, parole evidence regarding winterization is permitted – an exception to the parole evidence rule, which requires certain contracts regarding land be in writing.  Ohio Revised Code 1335.04 and .05.    Cronkelton v. Guaranteed Constr. Servs., 2013-Ohio-328 (3^rd Dist. Ct., February 4, 2013).