1. You were acting as the buyers agent for a lovely couple. The purchase agreement was signed and included an as is clause. After the sale goes through, and the deed is recorded, it is later found out that the sellers had placed a fresh coat of paint in the basement to cover up the fact that the home flooded every time it rained. The couple has multiple eye witnesses who can attest that the basement constantly flooded. Which of the following is accurate?

1. If the flooding was disclosed on the disclosure form, the as is clause would no longer apply and the couple can sue the seller.
2. If the flooding was able to be discovered through a reasonable investigation, the as is clause would no longer apply and the couple can sue the seller.
3. It doesnt matter if the flooding was able to be discovered or not because the purchase agreement merges with the deed upon recording.
4. If the flooding could not be discovered through a reasonable investigation, then it would be construed as a latent defect which is not protected by the as is clause.