Legal Definitions - with all faults

The legal term "with all faults" signifies that a seller is offering an item for sale in its current condition, and the buyer agrees to accept it exactly as it is, including any existing defects, imperfections, or problems, whether they are known or unknown at the time of sale. Essentially, the buyer assumes the risk for the item's condition, and the seller is generally relieved of responsibility for repairs or warranties regarding its quality after the sale.

Here are some examples to illustrate this concept:

• Example 1: Used Vehicle Purchase

  Imagine a private seller listing an older car online with the description: "1998 Sedan, runs well, but sold with all faults." If a buyer purchases this car and, a week later, discovers a significant oil leak or a failing air conditioning system, they generally cannot demand that the seller pay for repairs or take the car back. By agreeing to the "with all faults" condition, the buyer accepted the risk that such issues might exist and would be their responsibility.

• Example 2: Real Estate Foreclosure Auction

  A bank forecloses on a property and sells it at auction, explicitly stating that the house is being sold "with all faults." A buyer at this auction would understand that they are acquiring the property exactly as it stands, without any guarantees from the bank regarding its structural integrity, plumbing, electrical systems, or any other potential defects. If, after closing, the buyer discovers extensive termite damage or a leaking roof, they are responsible for these repairs, as they purchased the property acknowledging all its existing flaws.

• Example 3: Commercial Equipment Sale

  A small business owner decides to upgrade their office equipment and sells their old, but still functional, industrial printer to another company. The sale agreement includes a clause stating the printer is sold "with all faults." If the purchasing company later finds that the printer frequently jams or has a worn-out component that affects print quality, they cannot hold the original owner responsible for these issues. The "with all faults" clause means the buyer accepted the printer's current operational state and any inherent problems it might have.