Real Estate Law supersedes Limited Agency and Inspection waivers, and neither agreement/waiver eliminates the Agent's legal obligation to fully disclose such defects.
Smoke screen? That's putting it mildly.
Here's some other important info from Indiana License Law:
Disclosure form; presentation required before acceptance of offer
Sec. 10. (a) An owner must complete and sign a disclosure formand submit the form to a prospective buyer before an offer for the sale of the residential real estate is accepted.
(b) An appraiser retained to appraise the residential real estate for which the disclosure form has been prepared shall be given a copy of the form upon request. This subsection applies only to appraisals made for the buyer or an entity from which the buyer is seeking financing.
(c) Before closing, an accepted offer is not enforceable against the buyer until the owner and the prospective buyer have signed the disclosure form. After closing, the failure of the owner to deliver a disclosure statement form to the buyer does not by itself invalidate a real estate transaction.
As added by P.L.2-2002, SEC.6.
So while not having received a full disclosure from the Seller prior to closing might not invalidate the sale, there is certainly still the requirement that the Seller disclose the known defect prior to closing.
If you have evidence that both the Seller and the Listing Broker knew of the defect and failed to disclose it to you, it is my judgment that you have them over the proverbial barrel.
Principal Broker, REALTORÂ®
MacDuff Realty Group
Brokers and Agents are required by Indiana License Law to disclose ALL known defects to both Buyer and Seller as soon as they're discovered. If a problem existed with the septic system which was either newly discovered or a previously know issue prior to your closing of the transaction, it was the legal obligation of the Broker/Agent to disclose that defect. Period.
Stating a property is being sold "as-is" is not a legitimate reason for failing to disclose a defect.
From the Indiana Real Estate Commission Laws & Regulations:
IC 25-34.1-10-11 Licensee representing buyer or tenant; duties; disclosure of information
Sec. 11. (a) A licensee representing a buyer or tenant has the following duties and obligations:
(3) To promote the interests of the buyer or tenant by:
(C) disclosing to the buyer or tenant adverse material facts or risks actually known by the licensee ...
concerning the real estate transaction;
MacDuff Realty Group