While this article may be useful for understanding a general understanding of “As-Is” clauses and properties, please read your real estate contract to find out exactly what your “As-Is” clause says, if any. By using LawDepot`s real estate purchase agreement, you can tailor every aspect of your contract to your specific situation and property. “You should always go for a tour of the house, especially on a bank lot where no one knew how the house was maintained and no one knows what happened before the previous owners left the property,” says Winston Westbrook, a real estate agent and owner of Westbrook National Real Estate Co., which specializes in short selling and troubled real estate. Unless it`s a hot real estate sale market and other potential buyers competing with you, the listing agent knows that the property won`t sell before you get a market that works for you. In short, a properly developed “as-is” provision should allay a seller`s concerns that the buyer claims that the seller has guaranteed or provided certain assurances regarding the condition of the property, but that an “as-is” provision does not limit, mitigate or affect the seller`s obligation to provide the necessary information regarding the property. The second thing that communicates an “as-is” condition to the potential buyer is that you do not have to buy the house. Through a home inspection, the inspection allows the buyer to exit the sale if the repair of the property is too expensive. You can use a real estate purchase agreement for any type of purchase or sale of residential real estate as long as the house was previously in possession or construction is completed before the contract is concluded. In the case of a normal sale, there will be an as-is clause in the sales contract. This limits the seller`s liability if (and only if) they provide information about the property.
If the buyer buys the house but the seller has not revealed any major problems inside, the buyer could also have a lawsuit against the seller with an “As-Is” clause. Talk to your broker if you have any questions about this type of situation. Finally, it may be necessary to adopt different local and state statutes that require disclosure of different conditions (property in a flood zone, seismic zone, etc.) and many statutes do not allow for the renounce of this written notification. For sellers, it is important to specifically identify for buyers that the property is sold “as it is”. The more emphasis is placed (in quotes, basically, bold, etc.) the stronger your statement becomes. While this may seem like an exaggeration, you save everyone time by making sure that the only people who look at your property are those who are comfortable with your terms. But more importantly, any “as-is” language must be written into the treaty itself.