Lenawee County Board of Health v. Messerly

Appellants purchased a tract of land on which an apartment building was located. Prior to the transfer the owner had installed a septic tank on the property without a permit and in violation of the health code. Later, Appellants sold the property to Appellees. The contract for sale stated that “Purchaser has examined this property and agrees to accept same in its present condition. There are no other or additional written or oral understandings.” Appellees later discovered raw sewage seeping from the land and Plaintiff condemned the property for violation of the health code. Appellees alleged failure of consideration and willful concealment and failure to disclose the sanitation condition and asked that the land contract be rescinded. The trial court found there was no fraud or misrepresentation, as none of the parties knew of the transgression of the earlier owner, and the property was purchased “as is” after inspection. The trial court ruled that Appellees lacked a cause of action and foreclosure was ordered along with a judgment in the amount of $25, 943. The court of appeals affirmed in part but reversed on the finding of no cause of action.