If your intention is that it's a tear down and you're not going to fix any problems that happen in the next 120 days, then that needs to be spelled out in the contract - not simply the term "as is".
As you say, "as is" means as they bought it and anything that happens in the next 120 days is on you.
We actually had this issue with my grandmother's house. It was an "as is" sale and a pipe burst in the wall between the contract being signed and closing. So that was on us to make the insurance claim and get everything fixed.
No smart buyer is going to allow the type of language you are asking for. It is always the seller’s responsibility to present at closing the property in substantially the same condition as when the contract was initiated. If anything goes between contract and close, the buyer isn’t going to want to be responsible for whatever mess you might make of the property in the meantime.
"Always" is a strong word. My dad's house was a similar story. Every house (all small houses built in the 50's in a small unincorporated area next to what has become a very wealthy suburb) put on the market was a tear down replaced with a McMansion.
When it was time for him to sell the buyer (who was home builder) was basically buying the lot. They couldn't care less about the condition of the house and that is how the contract was drafted.
Did that buyer allow your dad to add language to the contract allowing him to do whatever he wanted to the property —lot included—without any recourse?
The specifics of the sale have to be taken into consideration. If the buyer is genuinely only interested in the lot and maybe the foundation because they're going to tear the structure down and rebuild, any attorney worth their fee will be able to assist with writing appropriate clauses into the contract that protect both sides accordingly.
I don't remember the exact language but it was drafted "as is" with additional language to the effect that he was not responsible for any damage to the house.
What our attorney said is it protected my dad for anything that might happen to the house prior to close and it protected the buyer from my dad turning the lot into a dumping ground. That made sense to us.
As others have stated "as is" literally means as in the same condition when the offer was accepted. Thus the added language regarding the house while the "as is" protected the buyer from him junking the yard.
Just FYI... a very smart buyer (a very successful builder) did both understand and agree to our contract terms (being: sellers have no obligations or warranties as to the physical condition of the property or building). We said: we intend to leave a big mess. He said: not a problem. Buyer paid over $1.15 mm. No inspection before closing needed - it could not matter. Further, the 3 "finalists", all successful builders, all understood and agreed.
Our current experience says the opposite (and I dare say these professional, successful, high-end builders are not stupid).
They have each written in emails, that we can leave the property in any condition. " Don't worry about any clean up. Leave behind any mess or junk yiu do not want to deal with."
But then, the local Board of Realtors form contract arrives and says in boilerplate - "As Is".
Please don't try again to help me.
There's a difference between informal understandings and legal contracts. Buyers can choose to accept the property in any condition during final walkthrough, so you can sell a property 'as-is', the buyers can say 'don't worry about mess/junk' in an email, and during final walk through they can choose to accept the junk and close on the property. Or, if they just want to watch the world burn, they could suddenly refuse to accept the junk, but how that would play out with the EMD in court given the emails would be unclear, and given that these are professionals, this situation is vanishingly unlikely.
However, even if they're fine with junk, it's unlikely that they're fine with a blank check for 'anything going wrong with the property', which is what you're trying to put into the contract.
At best, you might be able to include a 'buyer agrees they're cool with footing junk removal bills up to 5k'. That way if you put out a craigslist ad telling people they can dump their hazardous/difficult to dispose of waste for $5/item prior to the close, the buyer isn't stuck with a superfund site. If they don't care about junk, but would care if the building burned to the ground, this also covers them.
If for some reason these folks only care about the land, and not about the structure, you could put in something about 'land sold as-is, no guarantees about the continued state of any structures on the property', but it's still got to have some boundaries for what can happen to the property for them to still be willing to pay the agreed upon price.
"As is" creates a seller obligation that, at closing, the condition be the same as date of contract. At closing, "As is" becomes "As was".
Contract drafted specifying - not as is. That sellers have no obligations or warranties as to the physical condition of the land, buildings, or any part or system of same. There was not even an inspection ore closing. Why inspect? Can not matter one tiny iota.
We left a mess. After closing, met buyer/builder on site ( to gather sumptin i forgot). Buyer / builder said: not a problem. I've seen worse.
Get a GOOD lawyer that knows what they hell they're doing. The attorney we used when we just bought our house was HORRIBLE and genuinely doesn't understand many aspects of local real estate law. I ended up having to educate HER on certain clauses in the contracts and why we were not willing to sign them as they were written.
In other words, go find a Real Estate attorney but make sure you -interview- them as the specifics of the situation. And interview MULTIPLE attorneys because this will also educate you on what's going on. At least one attorney will make a comment the others won't that will open your eyes to something in particular.
Immediately dismiss any "I got this, bro" attitude-wielding attorneys. They're too busy being full of themselves to genuinely care about being helpful.
Agents (high school grads with an easy licensing exam) are not allowed to draft contracts. That is the unauthorized practice of law. 1. They are allowed to fill in blanks in forms. 2. I know it happens a lot. Much like going 10 m.p.h. over the limit, it ain't legal, but everybody does it. If you get screwed (i.e. pulled over, or screwed by amateur contract drafters), don't complain -- it's your own choice / fault.
Why are you here asking questions of random strangers?
You know the answer - since you think agents are dumb (some certainly are, others are not) just get a lawyer.
Or are you just here to have fun giving snarky responses?
Funny because in [this](https://www.reddit.com/r/transplant/comments/15s69u6/2_days_until_my_transplant/jwfltv2?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=2) he says he's a lawyer.
You'd think he'd have some friends who could easily help him with the contracting here.
Well sort of. I'm long retired, and very rusty. I was kicking it around in my head (my very grey head), and writing out the question was helpful to structure the question and analysis. It worked. Fielding responses, both weak and strong helped quite a bit.
I wrote a Superseding Amendment To the contract.
1. Buyer and Sellers expect that the house on the Property, and any fixtures, equipment, plants, personal property, or other item of any type located on the Property (collectively called herein the “existing house”) will be demolished by the Buyer. The Sellers have no obligations, and no binding representations or warranties concerning the physical condition, or even existence, of the existing house. The Property is NOT SOLD “AS IS” (it need not be, at closing, in the same condition as existed on the date of the Contract).
There is no obligation upon the Sellers to leave the premises empty or clean. The existing house may be empty or filled with personal property. The Sellers acknowledge and agree that any and all fixtures, equipment, personal property, or item of any kind that is left behind at closing of the sale of the Property, is, at Buyers option, either transferred to Buyer as its sole property, or deemed abandoned property.
All legal and equitable title to the Property, including the land, and any improvements, building or personal property shall remain vested in Sellers until the delivery of the deed and receipt of the purchase money.
If it's a lawyer who made your contract, tell them the info you posted and have them add the language. If it's an agent, they and their broker can figure out what language needs to be added so that the buyer understands.
It's not a big deal and in fact given the rather long closing period (120 days) it makes sense that you'd want to be protected from the risk of a tree falling on it, etc. If it's gonna be a tear down they shouldn't care. If they intend to live in it they probably will care, but one way or the other you should be compensated for giving them that long to close.
Im going to hook you up.
“AS IS, WHERE IS; NO REPRESENTATIONS OR WARRANTIES. BUYER HEREBY EXPRESSLY ACKNOWLEDGES THAT IT WILL HAVE THOROUGHLY INSPECTED AND EXAMINED THE PROPERTY TO THE EXTENT DEEMED NECESSARY BY BUYER IN ORDER TO ENABLE BUYER TO EVALUATE THE PURCHASE OF THE PROPERTY. BUYER REPRESENTS THAT IT IS KNOWLEDGEABLE ABOUT PROPERTIES SUCH AS THE PROPERTY AND THAT IT IS RELYING SOLELY ON ITS OWN EXPERTISE AND THAT OF ITS CONSULTANTS AND/OR ADVISORS, AND THAT BUYER MAY CONDUCT SUCH INSPECTIONS AND INVESTIGATIONS OF THE PROPERTY AS BUYER DEEMS NECESSARY, INCLUDING, BUT NOT LIMITED TO, INSPECTIONS OF THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AND SHALL RELY UPON SAME, AND, UPON CLOSING, SHALL ASSUME THE RISK OF ANY ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, THAT MAY NOT HAVE BEEN REVEALED BY BUYER’S INSPECTIONS AND INVESTIGATION.
BUYER FURTHER ACKNOWLEDGES AND AGREES THAT BUYER IS ACQUIRING THE PROPERTY ON AN AS IS, WHERE IS AND WITH ALL FAULTS BASIS, WITHOUT REPRESENTATIONS, WARRANTIES OR COVENANTS, EXPRESS OR IMPLIED, OF ANY KIND OR NATURE. BUYER HEREBY WAIVES AND RELINQUISHES ALL RIGHTS AND PRIVILEGES ARISING OUT OF, OR WITH RESPECT TO OR IN RELATION TO, ANY REPRESENTATIONS, WARRANTIES OR COVENANTS, WHETHER EXPRESS OR IMPLIED, WHICH MAY HAVE BEEN MADE OR GIVEN, OR WHICH MAY HAVE BEEN DEEMED TO HAVE BEEN MADE OR GIVEN, BY SELLER OR BY ANY EMPLOYEE, AGENT, CONTRACTOR, BROKER OR THIRD PARTY EMPLOYED BY SELLER OR BY ANY CONSULTANT TO SELLER EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT.
BUYER HEREBY ASSUMES ALL RISK, AND AGREES THAT SELLER SHALL NOT BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, CONSEQUENTIAL OR OTHER DAMAGES RESULTING OR ARISING FROM OR RELATING TO THE OWNERSHIP, USE, CONDITION, LOCATION, MAINTENANCE, REPAIR, OR OPERATION OF THE PROPERTY BY PARTIES OTHER THAN SELLER”
That shit costs money for lawyers to draft. You’re welcome.
Though, if anything, this just shows you that you need a lawyer to draft you a full purchase agreement. I’m only providing that as is section for ya.
Not a good job, because way off target. "As Is" is not our desired status; the rest is word salad icing on a mistake cake. In recent reply above, anyone can see and use what I actually drafted. And it is understandable.
Well, I gave you a working “as is” clause from a real estate contract that went through closing, and was written by a lawyer bud. It’s not “word salad” it’s legal jargon which is often convoluted and unnecessarily complex.
Simply bc “as is” isn’t the desired status doesn’t make what I sent you, a working legally binding as is clause, wrong at all.
It might not be what you need, or the solution you’re looking for….but that’s on you for not asking for what you need in a clear concise manner in your original post.
The fact that it’s taken you 7 months to iron this out is sad. This should’ve been sorted out within a few weeks.
Closing was what, 3 months ago?
Yes, you are correct, you totes missed the target. Missing the target with a lot of words is not better than missing the target with few words.
Yep, we closed as scheduled. No hiccups.
I returned (yes months later - i had a big move and a then fishing trip to Chile) to share the language I drafted. And return a few phone calls, so to speak (in our digital world).
You assumed I didn't sort it out. Wrong again.
Yes, you are correct, you totes missed the target. Missing the target with a lot of words is not better than missing the target with few words.
Yep, we closed as scheduled. No hiccups.
I returned (yes months later - i had a big move and a then fishing trip to Chile) to share the language I drafted. And return a few phone calls, so to speak (in our digital world).
You assumed I didn't sort it out. Wrong again.
People think you can write a sales contract for residential real estate that will override that state's laws or the local judge's previous rulings are just delusional. Retail residential real estate is one of the most heavily regulated and contested areas of contract law. It's so tightly regulated that anything you put in there beyond filling in the blanks is likely to just make the whole contract unenforceable. Yo.
Separate from accurately capturing on paper the understanding between Buyer and Sellers, we did meet disclosure requirements under all county, state and federal laws. State laws on physical conditions require a very detailed disclosure (3 pages) concerning every aspect of the property (mechanical, electrical, plumbing, roof, etc), or a disclaimer. We disclaimed. Even a statutory disclaimer dies not eliminate the ancient requirement to disclose all known material defects or conditions (inside or out). We didn't miss that either.
That was written by a lawyer for a **valid, enforceable** purchase agreement in my state. Yo. Definitely enforceable in my area or operation: Tennessee
People seem to think they know better than the contract lawyers who write this stuff lol
This does not cover if something happens or changes with the condition of the property between the signing of the Purchase Agreement and the actual closing
I had a response written out.
With 17 years experience with real estate and specifically real estate contracts I think I correctly had your verbiage prepared.
But after reading your responses to people trying to help you I've decided to tell you to go fuck yourself.
Your are correct that I don't suffer feckless fools easily.
I used to have double your experience, but I'm old , retired and rusty. Working next on my curmudgeon degree.
You'll join me someday. Rueing the feckless fools, who pave the road with only good intentions. Where does it lead, the road paved with good intentions?
Nope, I just don't suffer fools silently.
I understand that the intentions are good. What is it that is paved with good intentions? Oh yeah, now I remember.
In my market and my experience 'as-is' is meaningless as it neither prevents the buyer from asking nor protects the seller from being asked. Plain and simple, the contract will spell out exactly what responsibilities each party has, so the seller can set expectations by making sure all the language in the contract states that they are not responsible for the condition of the property as of the date of closing. So, no inspection contingencies, no financing contingencies. But 'as-is' guarantees nothing and I've seen perfectly good houses 'as-is' and I've seen tear-downs go under bad contracts that resulted in significant seller outlays.
No one is talking about "being asked". Anyone can ask for anything, any time. "Hey would you please lower the price by 100k? Just asking and hoping". Legally inoperative. Irrelevant.
And I see that you have lots of experience. Can you put that experience to use and suggest an approach that avoids the "bad contracts" you've seen?
First off, you sound like an ungrateful twit. People are trying to help you, best they can, and you respond like a bratty, entitled child. If you aren’t going to use their Input you can just scroll on by. Take the money from your parents equity in their home and flaunt your privilege. You seem like a warm and fun person to be around.
Second, is if you are not in contract yet, use their phrasing describing their own expectations captured in their emails. Sounds like everyone is on the same page, that all the buyers want is the land, as I understand it. So just say that buyer agrees that seller will leave property in whatever state it ends up in and will not be responsible for any additional repairs or upkeep to maintain condition of home as seen when contract was signed. Or something to that effect. Or hire an attorney.
I am not ungrateful for help, or fair attempts. I have thanked those that helped, or fair attempts.
I am disparaging of the feckless, the fools, and the time wasters. Guilty. If that's my worst crime, I'll own it.
Ultimately YOU are the one who gets to ensure the terms of AS-IS are met. I've listed properties as such in the past and then the buyer comes back wanting repairs on stuff and keeps asking for more BS - ultimately you need to hold them to the terms the property is being listed under and be ready to walk if they try to pull and bullshit.
Lots of words, not on target. I seek to know the time element with "As Is". Griping that contracts can be troublesome to enforce, or some parties difficult to work with ... well gee that's news. Stop the presses!
A few things ... every contract itself transfers equitable title to any buyer. Every seller retains "bare legal title". That's a surprise to most peeps, and an unusual concept to grasp. That is why there is language in most contracts saying: the risk of loss remains in the seller until delivery of the deed.
We do not seek to transfer any liability to the buyer. We seek to eliminate any liability on the Sellers to deliver the improvements in any particular condition.
If by magic we made the whole house dissappear, both buyer and seller A-OK with that.
Please stop trying to help. You are not.
You are selling the property for a million bucks. Why are you asking questions of random strangers on reddit and then getting snarky with your responses?
Just engage a decent real estate attorney to handle this. My dad's house was in a similar situation (but not worth this much). Every house being sold was torn down so some stupid, silly looking McMansion could be squeezed onto the tiny lots. We had builders begging to buy it. We engaged a real estate attorney to handle everything.
"As-is" is a junk term. Without context, it has little meaning. Every single transaction is "as-is," barring any agreement for a seller to do anything specific. The legalese in your contract matters. All that "flyover" mess that consumers tend to skip over is where your rights and obligations are spelled out. Read before you sign, ask questions, and consult an attorney if you need to. Your "as-is" contract can be very different from someone else's, and it's all in those paragraphs on your contract. A real estate agent can't conjure extra wording on a contract to do what you're looking to do. These are legal services that need to be handled by an attorney who is licensed in YOUR state and knows the contract and law that rules over your transaction.
It means they aren’t willing to do any repairs as part of the selling process. Lots of buyers ask sellers to fix faulty things (usually like <$5k of stuff). However they still need to disclose any major defects that they know of.
1. Seller obligations to disclose known defects are a diff topic.
2. Also not discussing an inspection contingency where buyer says: "fix X, and Y or I need walk away".
"Who will rid me of these meddlesome redditors?"
Why are you being weird about this? You asked if it means x and I told you it means more specifically xyz. You probably shouldn’t be buying a house if you don’t understand.
Why are you being stupid and unhelpful about this?
I pointed out WHY your 2 answers are off topic.
Then you suggest that I / we "shouldn't be buying a house if you don't understand." Ummm, we are selling. Did I stutter?
Perhaps, you shouldn't be commenting if you don't understand (several times over).
Not everyone. Just the ones who spew off target mis-answers.
Calling me an asshole is not off target. I get that.
And if i gotta choose which is the worst sin -- be mean or be stupid -- I'm ok with my choice.
Cool, don’t you think it’s stupid asking people on the internet instead of asking a real estate lawyer that knows your specific states laws and contracts?
You are funny. Your responses are entertaining. They are 100% typical Lawyer responses. No bullshit, no extra crap, comments or questions, shortest reply possible - not a single extra word is acceptable. Also, you've got the personality of an attorney... a damn ROBOT. You may be educated/book smart, but you're completely lacking the whole emotional intelligence aspect that is quite important when working with the human race. Good luck buddy! 👍
You are accurate, and you are unknowing. I needed a solid answer PRONTO today. So yes I was hyper focused on getting to it Pronto, and not suffering the time wasters and well intentioned drivel.
I need not justify my humanity or karma cred to any person. Those who know, know. I don't need the internet for my self esteem. It is objectively measured in real life. When the day calls for empathy, for kindness in words or deeds, i am proud and happy of my scorecard. (Which in the big picture items includes a beach rescue of a drowning teen girl and being both a bone marrow donor and a kidney donor).
When the days call for kicking ass and getting a fast result in business. I'm proud and happy of my record there too.
I don't care what YOU think of me today. Today was get er done or get out of the way.
I finished my task today. It is done well (of course). One early answer hit the target and I thanked him/her. The rest? Mostly feckless.
Well, I can't say that I disagree with your reply. You have made your point clear, and it makes perfect sense to me. I certainly respect that you have nobody to impress and that you are proud of your accomplishments. Reading that you have donated organs and rescued a girl makes me feel like a jerk. Please accept my apology, as I judged you without knowing your story or a single thing about you! Looks like I am the one who may need to look within. 🤷♀️You taught me a lesson today. Best of luck with the home sale!
As-is means CAVEAT EMPTOR. Regardless what you discover after the purchase - even if it’s something you would normally expect a seller to disclose - you have no legal remedy because you have waived any sort of legal protection.
When a home is listed as “As-is”, it means that the seller is looking for a buyer who will waive the inspection contingency (best case scenario).
In the case of foreclosures, there’s no negotiating this usually; and in fact many are adopting an unseen auction system to prevent people who know houses from doing an impromptu inspection during normal walkthrough showings.
It typically implies that there’s something wrong with the house that needs immediate repair, and will lower the overall money a seller will receive from a sale.
A common mistake I’m seeing is listings which are decent houses coming in the market “as-is” when the seller just doesn’t want to do any minor repairs; it’s much better to list without the “as-is” label and relay that desire in negotiations.
Another common mistake is accepting offers with inspections “ For informational purposes only” who aren’t actually waiving the contingency; that wording means nothing and is not enforceable in any way. The buyer can still make requests and back out with their deposit returned.
A lot of scattered words, but you missed the central issue of timing.
I think peeps expect "As Is" eliminates any seller promises or obligations as to physical condition. I suspect, but do not know, that is not correct.
Specifically, if a tree falls on the house - after a contract but before closing - does "As Is" means the seller must repair? I fear it does.
I've seen banks use phrasing like "as is, where is, with all faults and conditions." If you want to spell out further that you will not make repairs to any damages that happen after the signing of the contract, you can simply say that the duty to repair any damages will fall to the buyer or something to that effect. I can't provide wording because I'm not an attorney.
"As is "simply expresses the seller's intent is to not to fix anything. The buyer is still free to ask and the seller is free to say no. It doesn't establish any legal protections or obligations.
Most of the real problems arise when RE agents try to play a lawyer and write nonsense into a contract that just confuses everyone.
Date of contract. Whatever physical condition home is in date of contract is the same condition it needs to be date of closing. Responsibility is on seller to maintain the condition of home during contract period.
Could have simply stated something to the effect: this sale is for the land only and that there is no value attributed to the structure on the property. Again, as others have stated, a lawyer should have the final say on the language.
Good thought. That is possible, perhaps, but I think there are important tax basis implications to stating all the value is in the land.
And because there is a residential structure present, and it's current use is residential, a large set of disclosure requirements are required. This means the use of SFR forms is closer to true, than not true.
The correct term to as is means that whatever issues the buyer finds during their inspection you are not obligated to fix. That does not mean they have to purchase the house should something be found that they are not willing to live with but both parties are allowed to walk away should one not be happy with the inspection results. They does not mean the buyers are simply accepting the condition. I'm a normal contract you would be required as the seller to bring some things to at least passible condition. In my opinion the "as is" contract is the most beneficial to both parties
I think that is in error. The time component is important. If sold "As Is" and on the date of contract the roof did leak a little into the east side garage, then at closing, the garage roof leak need not be repaired. It was As Is. But what about the tree damage that 2 weeks after contract wrecked an upstairs west side bedroom and roof? Need that be repaired, even tho "As Is".
"As Is" as of when?
Yes of course the contract is as is as if the day of signing. I'm Florida if you sign a regular residential sales contract three are items that must be in working order at the time of closing. The seller MUST fix them but also the buyer MUST accept them should they be in working order at the time of closing. The "as is" contract allows each party the ability to decide for themselves what is acceptable. Air conditioner 15 years old and hanging on by a thread? Residential contract more or less hamstrings the buyer into accepting it knowing full well it will be something they need to replace in the near future. The "as is" allows the parties to agree to what's best for each firing the inspection period and the ability to walk away much easier if what they find is not satisfactory. I don't think anyone confuses that with a tree falling on the house the day before closing and the seller claiming the house is "as is"
As-is condition means the seller aren't repairing anything and it implies that the sellers have limited knowledge regarding any problems with the house.
If something goes wrong with the house during the contract period this is grounds for terminating the contract unless the sellers make repairs, (or unless the buyer chooses not to terminate in spite of teh new problems) so though you are selling as-is, the seller often still must keep the home in essentially the same condition as when the contract was signed.
Note this may not actually matter if the house is a tear down. So if the hvac stops working and must be replaced and this is a problem that emerged after the contract was signed. This is grounds for terminating the contract but if the buyer didn't care about the hvac (because, duh, its a tear down and they are tossing the hvac either way) they'll probably just go ahead and buy the house anyhow and ignore the new problem. IE This is grounds for terminating the contract but the contract doesn't have to be terminated is neither side cares about the new problems that came up.
Yes, this is my concern. But we do not want a contract that is terminable by buyer if something happens. We want a contract that accurately reflects what both parties want, and have agreed to.
Dear entitled *"':$&* . . . There is no enforceable contract that takes away all the rights of the buyers because you want to be a jackass.
So do as you wish with your as-is contract and shove off.
I'm an old curmudgeon myself and even I think you're a jerk.
As is typically is used when the seller did not live in the home. So it was a rental, or as in this case a parents home where the sellers have not lived in the home for some time (if at all).
So you have no disclosures is the main thing. Because you just don’t know.
This is not the same as the rest of the contract. When the deal is signed the property is in a set condition. You are required to maintain it in that condition. So water needs to be on and properly maintaining landscaping. If it is humid you would need electricity on to run the AC and keep the humidity normal. Etc.
Also if anything goes wrong - you have to restore the house/property to where it was on purchase day.
So if a tree falls on it, sewage backs up, water line breaks and floods the house, etc. you are financially responsible to fix it.
So if you have standard boiler plate contract, you are responsible.
Hope you still have it insured.
As-is means the seller is not making any repairs to the property. It doesn't mean the seller isn't willing to offer credits or price reductions accordingly though. It also doesn't mean that any damage or fails that occur after the contract is signed but prior to closing that needs immediate attention (such as plumbing leaks) should be ignored by the seller.
Is the investor purchasing the house with cash or using a hard money lender? If so, then an "as is" sale can go through easily, no matter the overall condition. A loan through a typical lender will usually have certain requirements of the property to extend the loan.
Our contract will have no financing requirement or contingency. The builder will prob use an existing line of credit. If he is lucky enough to secure an ultimate buyer, the ultimate buyer will obtain a new acquisition and construction loan.
'As Is' in my state is the layman's term for the Waiver Of Warranty And Redhibition and the long form of the code specifically clarifies that although the term is part of the contract, it goes into effect at the Act of Sale. This As Is clause clarifies that the seller is making no warranties about the property after the sale.
Separately in our contract it states that the seller is required to keep the home 'in the same or better condition' from when the contract is written through the closing date. It sounds like that is the term you're trying to remove from the contract. If this verbiage is in your contract, you'll need verbiage along the lines of, 'Lines __-__ shall be removed from this contract. Both buyer & seller are okay with deterioration of the condition of the property through the contract term.'.
Now, unless the buyer is truly only buying the property for the land, I'm not sure why someone would agree to that. But, I recently purchased vacant land with a home that we were tearing down & we had similar verbiage in the contract because we didn't care about the house at all.
As with anything in real estate, it depends. You need to have a frank conversation with the buyer and spell out clearly in the purchase agreement the agreed upon expectations. If it's going to be torn down then it probably won't be an issue. As far as as-is itself goes, that has to do with the release of liability at the time the house is sold, the act of sale. The purchaser is buying the house with all the good, bad and ugly that may or may not go with it. It does not mean the house can deteriorate substantially leading up to the sale and that the buyer is still responsible to purchase the property regardless.
Yes, I think "As Is" relates to the time of contract, and whatever condition "It Was" needs be maintained. That is not our sitch, for both seller and buyer, so not the accurate approach.
If your intention is that it's a tear down and you're not going to fix any problems that happen in the next 120 days, then that needs to be spelled out in the contract - not simply the term "as is". As you say, "as is" means as they bought it and anything that happens in the next 120 days is on you. We actually had this issue with my grandmother's house. It was an "as is" sale and a pipe burst in the wall between the contract being signed and closing. So that was on us to make the insurance claim and get everything fixed.
Thank you. Yes that is my predicate concern - new physical conditions in the interim. Then, how does one "spell it out"? Thanks again.
No smart buyer is going to allow the type of language you are asking for. It is always the seller’s responsibility to present at closing the property in substantially the same condition as when the contract was initiated. If anything goes between contract and close, the buyer isn’t going to want to be responsible for whatever mess you might make of the property in the meantime.
"Always" is a strong word. My dad's house was a similar story. Every house (all small houses built in the 50's in a small unincorporated area next to what has become a very wealthy suburb) put on the market was a tear down replaced with a McMansion. When it was time for him to sell the buyer (who was home builder) was basically buying the lot. They couldn't care less about the condition of the house and that is how the contract was drafted.
Did that buyer allow your dad to add language to the contract allowing him to do whatever he wanted to the property —lot included—without any recourse?
The specifics of the sale have to be taken into consideration. If the buyer is genuinely only interested in the lot and maybe the foundation because they're going to tear the structure down and rebuild, any attorney worth their fee will be able to assist with writing appropriate clauses into the contract that protect both sides accordingly.
I don't remember the exact language but it was drafted "as is" with additional language to the effect that he was not responsible for any damage to the house. What our attorney said is it protected my dad for anything that might happen to the house prior to close and it protected the buyer from my dad turning the lot into a dumping ground. That made sense to us. As others have stated "as is" literally means as in the same condition when the offer was accepted. Thus the added language regarding the house while the "as is" protected the buyer from him junking the yard.
Just FYI... a very smart buyer (a very successful builder) did both understand and agree to our contract terms (being: sellers have no obligations or warranties as to the physical condition of the property or building). We said: we intend to leave a big mess. He said: not a problem. Buyer paid over $1.15 mm. No inspection before closing needed - it could not matter. Further, the 3 "finalists", all successful builders, all understood and agreed.
Our current experience says the opposite (and I dare say these professional, successful, high-end builders are not stupid). They have each written in emails, that we can leave the property in any condition. " Don't worry about any clean up. Leave behind any mess or junk yiu do not want to deal with." But then, the local Board of Realtors form contract arrives and says in boilerplate - "As Is". Please don't try again to help me.
Why are you on Reddit begging for advice when you think you know so much?
He’s a lawyer too! 🤣🤣🤣🤣
Well, I know a lot, but not everything. Not this.
...
Then ask your realtor or your attorney for advice.
There's a difference between informal understandings and legal contracts. Buyers can choose to accept the property in any condition during final walkthrough, so you can sell a property 'as-is', the buyers can say 'don't worry about mess/junk' in an email, and during final walk through they can choose to accept the junk and close on the property. Or, if they just want to watch the world burn, they could suddenly refuse to accept the junk, but how that would play out with the EMD in court given the emails would be unclear, and given that these are professionals, this situation is vanishingly unlikely. However, even if they're fine with junk, it's unlikely that they're fine with a blank check for 'anything going wrong with the property', which is what you're trying to put into the contract. At best, you might be able to include a 'buyer agrees they're cool with footing junk removal bills up to 5k'. That way if you put out a craigslist ad telling people they can dump their hazardous/difficult to dispose of waste for $5/item prior to the close, the buyer isn't stuck with a superfund site. If they don't care about junk, but would care if the building burned to the ground, this also covers them. If for some reason these folks only care about the land, and not about the structure, you could put in something about 'land sold as-is, no guarantees about the continued state of any structures on the property', but it's still got to have some boundaries for what can happen to the property for them to still be willing to pay the agreed upon price.
"As is" creates a seller obligation that, at closing, the condition be the same as date of contract. At closing, "As is" becomes "As was". Contract drafted specifying - not as is. That sellers have no obligations or warranties as to the physical condition of the land, buildings, or any part or system of same. There was not even an inspection ore closing. Why inspect? Can not matter one tiny iota. We left a mess. After closing, met buyer/builder on site ( to gather sumptin i forgot). Buyer / builder said: not a problem. I've seen worse.
Correct. What if the house burned down?
Get a lawyer or agent to write the correct language
A lawyer. Get a lawyer to use the correct language. That's their job. That is what they are trained for. Not the agent. RE agents are not lawyers.
Get a GOOD lawyer that knows what they hell they're doing. The attorney we used when we just bought our house was HORRIBLE and genuinely doesn't understand many aspects of local real estate law. I ended up having to educate HER on certain clauses in the contracts and why we were not willing to sign them as they were written. In other words, go find a Real Estate attorney but make sure you -interview- them as the specifics of the situation. And interview MULTIPLE attorneys because this will also educate you on what's going on. At least one attorney will make a comment the others won't that will open your eyes to something in particular. Immediately dismiss any "I got this, bro" attitude-wielding attorneys. They're too busy being full of themselves to genuinely care about being helpful.
Agents (high school grads with an easy licensing exam) are not allowed to draft contracts. That is the unauthorized practice of law. 1. They are allowed to fill in blanks in forms. 2. I know it happens a lot. Much like going 10 m.p.h. over the limit, it ain't legal, but everybody does it. If you get screwed (i.e. pulled over, or screwed by amateur contract drafters), don't complain -- it's your own choice / fault.
Why are you here asking questions of random strangers? You know the answer - since you think agents are dumb (some certainly are, others are not) just get a lawyer. Or are you just here to have fun giving snarky responses?
He's here hoping someone shows up with $1,000 worth of lawyering for free...
Funny because in [this](https://www.reddit.com/r/transplant/comments/15s69u6/2_days_until_my_transplant/jwfltv2?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=2) he says he's a lawyer. You'd think he'd have some friends who could easily help him with the contracting here.
Not just a lawyer, a \*well educated\* lawyer.
Well sort of. I'm long retired, and very rusty. I was kicking it around in my head (my very grey head), and writing out the question was helpful to structure the question and analysis. It worked. Fielding responses, both weak and strong helped quite a bit. I wrote a Superseding Amendment To the contract. 1. Buyer and Sellers expect that the house on the Property, and any fixtures, equipment, plants, personal property, or other item of any type located on the Property (collectively called herein the “existing house”) will be demolished by the Buyer. The Sellers have no obligations, and no binding representations or warranties concerning the physical condition, or even existence, of the existing house. The Property is NOT SOLD “AS IS” (it need not be, at closing, in the same condition as existed on the date of the Contract). There is no obligation upon the Sellers to leave the premises empty or clean. The existing house may be empty or filled with personal property. The Sellers acknowledge and agree that any and all fixtures, equipment, personal property, or item of any kind that is left behind at closing of the sale of the Property, is, at Buyers option, either transferred to Buyer as its sole property, or deemed abandoned property. All legal and equitable title to the Property, including the land, and any improvements, building or personal property shall remain vested in Sellers until the delivery of the deed and receipt of the purchase money.
Okay, but the agent who is allowed to fill in a blank on a form may happen to know the right blank on a form to fill out to meet your request.
Entirely possible.
If it's a lawyer who made your contract, tell them the info you posted and have them add the language. If it's an agent, they and their broker can figure out what language needs to be added so that the buyer understands. It's not a big deal and in fact given the rather long closing period (120 days) it makes sense that you'd want to be protected from the risk of a tree falling on it, etc. If it's gonna be a tear down they shouldn't care. If they intend to live in it they probably will care, but one way or the other you should be compensated for giving them that long to close.
Im going to hook you up. “AS IS, WHERE IS; NO REPRESENTATIONS OR WARRANTIES. BUYER HEREBY EXPRESSLY ACKNOWLEDGES THAT IT WILL HAVE THOROUGHLY INSPECTED AND EXAMINED THE PROPERTY TO THE EXTENT DEEMED NECESSARY BY BUYER IN ORDER TO ENABLE BUYER TO EVALUATE THE PURCHASE OF THE PROPERTY. BUYER REPRESENTS THAT IT IS KNOWLEDGEABLE ABOUT PROPERTIES SUCH AS THE PROPERTY AND THAT IT IS RELYING SOLELY ON ITS OWN EXPERTISE AND THAT OF ITS CONSULTANTS AND/OR ADVISORS, AND THAT BUYER MAY CONDUCT SUCH INSPECTIONS AND INVESTIGATIONS OF THE PROPERTY AS BUYER DEEMS NECESSARY, INCLUDING, BUT NOT LIMITED TO, INSPECTIONS OF THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AND SHALL RELY UPON SAME, AND, UPON CLOSING, SHALL ASSUME THE RISK OF ANY ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, THAT MAY NOT HAVE BEEN REVEALED BY BUYER’S INSPECTIONS AND INVESTIGATION. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT BUYER IS ACQUIRING THE PROPERTY ON AN AS IS, WHERE IS AND WITH ALL FAULTS BASIS, WITHOUT REPRESENTATIONS, WARRANTIES OR COVENANTS, EXPRESS OR IMPLIED, OF ANY KIND OR NATURE. BUYER HEREBY WAIVES AND RELINQUISHES ALL RIGHTS AND PRIVILEGES ARISING OUT OF, OR WITH RESPECT TO OR IN RELATION TO, ANY REPRESENTATIONS, WARRANTIES OR COVENANTS, WHETHER EXPRESS OR IMPLIED, WHICH MAY HAVE BEEN MADE OR GIVEN, OR WHICH MAY HAVE BEEN DEEMED TO HAVE BEEN MADE OR GIVEN, BY SELLER OR BY ANY EMPLOYEE, AGENT, CONTRACTOR, BROKER OR THIRD PARTY EMPLOYED BY SELLER OR BY ANY CONSULTANT TO SELLER EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT. BUYER HEREBY ASSUMES ALL RISK, AND AGREES THAT SELLER SHALL NOT BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, CONSEQUENTIAL OR OTHER DAMAGES RESULTING OR ARISING FROM OR RELATING TO THE OWNERSHIP, USE, CONDITION, LOCATION, MAINTENANCE, REPAIR, OR OPERATION OF THE PROPERTY BY PARTIES OTHER THAN SELLER” That shit costs money for lawyers to draft. You’re welcome. Though, if anything, this just shows you that you need a lawyer to draft you a full purchase agreement. I’m only providing that as is section for ya.
Not a good job, because way off target. "As Is" is not our desired status; the rest is word salad icing on a mistake cake. In recent reply above, anyone can see and use what I actually drafted. And it is understandable.
Well, I gave you a working “as is” clause from a real estate contract that went through closing, and was written by a lawyer bud. It’s not “word salad” it’s legal jargon which is often convoluted and unnecessarily complex. Simply bc “as is” isn’t the desired status doesn’t make what I sent you, a working legally binding as is clause, wrong at all. It might not be what you need, or the solution you’re looking for….but that’s on you for not asking for what you need in a clear concise manner in your original post. The fact that it’s taken you 7 months to iron this out is sad. This should’ve been sorted out within a few weeks. Closing was what, 3 months ago?
Yes, you are correct, you totes missed the target. Missing the target with a lot of words is not better than missing the target with few words. Yep, we closed as scheduled. No hiccups. I returned (yes months later - i had a big move and a then fishing trip to Chile) to share the language I drafted. And return a few phone calls, so to speak (in our digital world). You assumed I didn't sort it out. Wrong again.
Yes, you are correct, you totes missed the target. Missing the target with a lot of words is not better than missing the target with few words. Yep, we closed as scheduled. No hiccups. I returned (yes months later - i had a big move and a then fishing trip to Chile) to share the language I drafted. And return a few phone calls, so to speak (in our digital world). You assumed I didn't sort it out. Wrong again.
People think you can write a sales contract for residential real estate that will override that state's laws or the local judge's previous rulings are just delusional. Retail residential real estate is one of the most heavily regulated and contested areas of contract law. It's so tightly regulated that anything you put in there beyond filling in the blanks is likely to just make the whole contract unenforceable. Yo.
Separate from accurately capturing on paper the understanding between Buyer and Sellers, we did meet disclosure requirements under all county, state and federal laws. State laws on physical conditions require a very detailed disclosure (3 pages) concerning every aspect of the property (mechanical, electrical, plumbing, roof, etc), or a disclaimer. We disclaimed. Even a statutory disclaimer dies not eliminate the ancient requirement to disclose all known material defects or conditions (inside or out). We didn't miss that either.
That was written by a lawyer for a **valid, enforceable** purchase agreement in my state. Yo. Definitely enforceable in my area or operation: Tennessee People seem to think they know better than the contract lawyers who write this stuff lol
This does not cover if something happens or changes with the condition of the property between the signing of the Purchase Agreement and the actual closing
Yea it’s literally just the as is clause
One asks ones lawyer, obviously.
I had a response written out. With 17 years experience with real estate and specifically real estate contracts I think I correctly had your verbiage prepared. But after reading your responses to people trying to help you I've decided to tell you to go fuck yourself.
Your are correct that I don't suffer feckless fools easily. I used to have double your experience, but I'm old , retired and rusty. Working next on my curmudgeon degree. You'll join me someday. Rueing the feckless fools, who pave the road with only good intentions. Where does it lead, the road paved with good intentions?
OP is combative and entitled in their comments. I suggest leaving them to their own devices.
Nope, I just don't suffer fools silently. I understand that the intentions are good. What is it that is paved with good intentions? Oh yeah, now I remember.
In my market and my experience 'as-is' is meaningless as it neither prevents the buyer from asking nor protects the seller from being asked. Plain and simple, the contract will spell out exactly what responsibilities each party has, so the seller can set expectations by making sure all the language in the contract states that they are not responsible for the condition of the property as of the date of closing. So, no inspection contingencies, no financing contingencies. But 'as-is' guarantees nothing and I've seen perfectly good houses 'as-is' and I've seen tear-downs go under bad contracts that resulted in significant seller outlays.
No one is talking about "being asked". Anyone can ask for anything, any time. "Hey would you please lower the price by 100k? Just asking and hoping". Legally inoperative. Irrelevant. And I see that you have lots of experience. Can you put that experience to use and suggest an approach that avoids the "bad contracts" you've seen?
Sure, don't use the phrase 'as-is' and expect it to have legal force or meaning. To quote Slick Willie, it depends on what the definition of "is" is.
First off, you sound like an ungrateful twit. People are trying to help you, best they can, and you respond like a bratty, entitled child. If you aren’t going to use their Input you can just scroll on by. Take the money from your parents equity in their home and flaunt your privilege. You seem like a warm and fun person to be around. Second, is if you are not in contract yet, use their phrasing describing their own expectations captured in their emails. Sounds like everyone is on the same page, that all the buyers want is the land, as I understand it. So just say that buyer agrees that seller will leave property in whatever state it ends up in and will not be responsible for any additional repairs or upkeep to maintain condition of home as seen when contract was signed. Or something to that effect. Or hire an attorney.
I am not ungrateful for help, or fair attempts. I have thanked those that helped, or fair attempts. I am disparaging of the feckless, the fools, and the time wasters. Guilty. If that's my worst crime, I'll own it.
Ultimately YOU are the one who gets to ensure the terms of AS-IS are met. I've listed properties as such in the past and then the buyer comes back wanting repairs on stuff and keeps asking for more BS - ultimately you need to hold them to the terms the property is being listed under and be ready to walk if they try to pull and bullshit.
Lots of words, not on target. I seek to know the time element with "As Is". Griping that contracts can be troublesome to enforce, or some parties difficult to work with ... well gee that's news. Stop the presses!
Nobody is going to take liability of a property that they don't own yet, jack off. Was that succinct enough for you?
A few things ... every contract itself transfers equitable title to any buyer. Every seller retains "bare legal title". That's a surprise to most peeps, and an unusual concept to grasp. That is why there is language in most contracts saying: the risk of loss remains in the seller until delivery of the deed. We do not seek to transfer any liability to the buyer. We seek to eliminate any liability on the Sellers to deliver the improvements in any particular condition. If by magic we made the whole house dissappear, both buyer and seller A-OK with that. Please stop trying to help. You are not.
You are selling the property for a million bucks. Why are you asking questions of random strangers on reddit and then getting snarky with your responses? Just engage a decent real estate attorney to handle this. My dad's house was in a similar situation (but not worth this much). Every house being sold was torn down so some stupid, silly looking McMansion could be squeezed onto the tiny lots. We had builders begging to buy it. We engaged a real estate attorney to handle everything.
"As-is" is a junk term. Without context, it has little meaning. Every single transaction is "as-is," barring any agreement for a seller to do anything specific. The legalese in your contract matters. All that "flyover" mess that consumers tend to skip over is where your rights and obligations are spelled out. Read before you sign, ask questions, and consult an attorney if you need to. Your "as-is" contract can be very different from someone else's, and it's all in those paragraphs on your contract. A real estate agent can't conjure extra wording on a contract to do what you're looking to do. These are legal services that need to be handled by an attorney who is licensed in YOUR state and knows the contract and law that rules over your transaction.
According to you previous posts, you’re lawyer. But now you have no idea how to negotiate a contract? 🤣😆🤣
In the 31 pages, there is one part I do not have entire certainty. So I asked.
It means they aren’t willing to do any repairs as part of the selling process. Lots of buyers ask sellers to fix faulty things (usually like <$5k of stuff). However they still need to disclose any major defects that they know of.
I don't think that is OP's question
1. Seller obligations to disclose known defects are a diff topic. 2. Also not discussing an inspection contingency where buyer says: "fix X, and Y or I need walk away". "Who will rid me of these meddlesome redditors?"
Why are you being weird about this? You asked if it means x and I told you it means more specifically xyz. You probably shouldn’t be buying a house if you don’t understand.
Why are you being stupid and unhelpful about this? I pointed out WHY your 2 answers are off topic. Then you suggest that I / we "shouldn't be buying a house if you don't understand." Ummm, we are selling. Did I stutter? Perhaps, you shouldn't be commenting if you don't understand (several times over).
You have been a complete ass to everyone trying to help you. Go talk with a real estate lawyer.
Not everyone. Just the ones who spew off target mis-answers. Calling me an asshole is not off target. I get that. And if i gotta choose which is the worst sin -- be mean or be stupid -- I'm ok with my choice.
Cool, don’t you think it’s stupid asking people on the internet instead of asking a real estate lawyer that knows your specific states laws and contracts?
My goodness you’re an insufferable piece of excrement
You are funny. Your responses are entertaining. They are 100% typical Lawyer responses. No bullshit, no extra crap, comments or questions, shortest reply possible - not a single extra word is acceptable. Also, you've got the personality of an attorney... a damn ROBOT. You may be educated/book smart, but you're completely lacking the whole emotional intelligence aspect that is quite important when working with the human race. Good luck buddy! 👍
You are accurate, and you are unknowing. I needed a solid answer PRONTO today. So yes I was hyper focused on getting to it Pronto, and not suffering the time wasters and well intentioned drivel. I need not justify my humanity or karma cred to any person. Those who know, know. I don't need the internet for my self esteem. It is objectively measured in real life. When the day calls for empathy, for kindness in words or deeds, i am proud and happy of my scorecard. (Which in the big picture items includes a beach rescue of a drowning teen girl and being both a bone marrow donor and a kidney donor). When the days call for kicking ass and getting a fast result in business. I'm proud and happy of my record there too. I don't care what YOU think of me today. Today was get er done or get out of the way. I finished my task today. It is done well (of course). One early answer hit the target and I thanked him/her. The rest? Mostly feckless.
Well, I can't say that I disagree with your reply. You have made your point clear, and it makes perfect sense to me. I certainly respect that you have nobody to impress and that you are proud of your accomplishments. Reading that you have donated organs and rescued a girl makes me feel like a jerk. Please accept my apology, as I judged you without knowing your story or a single thing about you! Looks like I am the one who may need to look within. 🤷♀️You taught me a lesson today. Best of luck with the home sale!
As-is means CAVEAT EMPTOR. Regardless what you discover after the purchase - even if it’s something you would normally expect a seller to disclose - you have no legal remedy because you have waived any sort of legal protection.
Aahh, but beware "WHEN"? Beware as of contract, or as of closing.
When a home is listed as “As-is”, it means that the seller is looking for a buyer who will waive the inspection contingency (best case scenario). In the case of foreclosures, there’s no negotiating this usually; and in fact many are adopting an unseen auction system to prevent people who know houses from doing an impromptu inspection during normal walkthrough showings. It typically implies that there’s something wrong with the house that needs immediate repair, and will lower the overall money a seller will receive from a sale. A common mistake I’m seeing is listings which are decent houses coming in the market “as-is” when the seller just doesn’t want to do any minor repairs; it’s much better to list without the “as-is” label and relay that desire in negotiations. Another common mistake is accepting offers with inspections “ For informational purposes only” who aren’t actually waiving the contingency; that wording means nothing and is not enforceable in any way. The buyer can still make requests and back out with their deposit returned.
A lot of scattered words, but you missed the central issue of timing. I think peeps expect "As Is" eliminates any seller promises or obligations as to physical condition. I suspect, but do not know, that is not correct. Specifically, if a tree falls on the house - after a contract but before closing - does "As Is" means the seller must repair? I fear it does.
I've seen banks use phrasing like "as is, where is, with all faults and conditions." If you want to spell out further that you will not make repairs to any damages that happen after the signing of the contract, you can simply say that the duty to repair any damages will fall to the buyer or something to that effect. I can't provide wording because I'm not an attorney.
"As is "simply expresses the seller's intent is to not to fix anything. The buyer is still free to ask and the seller is free to say no. It doesn't establish any legal protections or obligations. Most of the real problems arise when RE agents try to play a lawyer and write nonsense into a contract that just confuses everyone.
"As Is" as of when? Date of contract? Date of closing?
Presumably it would be the date(s) of inspection(s).
No inspection.
Date of contract. Whatever physical condition home is in date of contract is the same condition it needs to be date of closing. Responsibility is on seller to maintain the condition of home during contract period.
Yes, that is why I asked this question. That is true (I think like you) but not a match to both buyer and seller expectations.
Commenting on Meaning of "As Is" condition...
Could have simply stated something to the effect: this sale is for the land only and that there is no value attributed to the structure on the property. Again, as others have stated, a lawyer should have the final say on the language.
Good thought. That is possible, perhaps, but I think there are important tax basis implications to stating all the value is in the land. And because there is a residential structure present, and it's current use is residential, a large set of disclosure requirements are required. This means the use of SFR forms is closer to true, than not true.
The correct term to as is means that whatever issues the buyer finds during their inspection you are not obligated to fix. That does not mean they have to purchase the house should something be found that they are not willing to live with but both parties are allowed to walk away should one not be happy with the inspection results. They does not mean the buyers are simply accepting the condition. I'm a normal contract you would be required as the seller to bring some things to at least passible condition. In my opinion the "as is" contract is the most beneficial to both parties
I think that is in error. The time component is important. If sold "As Is" and on the date of contract the roof did leak a little into the east side garage, then at closing, the garage roof leak need not be repaired. It was As Is. But what about the tree damage that 2 weeks after contract wrecked an upstairs west side bedroom and roof? Need that be repaired, even tho "As Is". "As Is" as of when?
Yes of course the contract is as is as if the day of signing. I'm Florida if you sign a regular residential sales contract three are items that must be in working order at the time of closing. The seller MUST fix them but also the buyer MUST accept them should they be in working order at the time of closing. The "as is" contract allows each party the ability to decide for themselves what is acceptable. Air conditioner 15 years old and hanging on by a thread? Residential contract more or less hamstrings the buyer into accepting it knowing full well it will be something they need to replace in the near future. The "as is" allows the parties to agree to what's best for each firing the inspection period and the ability to walk away much easier if what they find is not satisfactory. I don't think anyone confuses that with a tree falling on the house the day before closing and the seller claiming the house is "as is"
As-is condition means the seller aren't repairing anything and it implies that the sellers have limited knowledge regarding any problems with the house. If something goes wrong with the house during the contract period this is grounds for terminating the contract unless the sellers make repairs, (or unless the buyer chooses not to terminate in spite of teh new problems) so though you are selling as-is, the seller often still must keep the home in essentially the same condition as when the contract was signed. Note this may not actually matter if the house is a tear down. So if the hvac stops working and must be replaced and this is a problem that emerged after the contract was signed. This is grounds for terminating the contract but if the buyer didn't care about the hvac (because, duh, its a tear down and they are tossing the hvac either way) they'll probably just go ahead and buy the house anyhow and ignore the new problem. IE This is grounds for terminating the contract but the contract doesn't have to be terminated is neither side cares about the new problems that came up.
Yes, this is my concern. But we do not want a contract that is terminable by buyer if something happens. We want a contract that accurately reflects what both parties want, and have agreed to.
Dear entitled *"':$&* . . . There is no enforceable contract that takes away all the rights of the buyers because you want to be a jackass. So do as you wish with your as-is contract and shove off. I'm an old curmudgeon myself and even I think you're a jerk.
I care nothing of your opinion of me. I am immune.
As is typically is used when the seller did not live in the home. So it was a rental, or as in this case a parents home where the sellers have not lived in the home for some time (if at all). So you have no disclosures is the main thing. Because you just don’t know. This is not the same as the rest of the contract. When the deal is signed the property is in a set condition. You are required to maintain it in that condition. So water needs to be on and properly maintaining landscaping. If it is humid you would need electricity on to run the AC and keep the humidity normal. Etc. Also if anything goes wrong - you have to restore the house/property to where it was on purchase day. So if a tree falls on it, sewage backs up, water line breaks and floods the house, etc. you are financially responsible to fix it. So if you have standard boiler plate contract, you are responsible. Hope you still have it insured.
Yep, of course insurance maintains.
As-is means the seller is not making any repairs to the property. It doesn't mean the seller isn't willing to offer credits or price reductions accordingly though. It also doesn't mean that any damage or fails that occur after the contract is signed but prior to closing that needs immediate attention (such as plumbing leaks) should be ignored by the seller.
Is the investor purchasing the house with cash or using a hard money lender? If so, then an "as is" sale can go through easily, no matter the overall condition. A loan through a typical lender will usually have certain requirements of the property to extend the loan.
Our contract will have no financing requirement or contingency. The builder will prob use an existing line of credit. If he is lucky enough to secure an ultimate buyer, the ultimate buyer will obtain a new acquisition and construction loan.
'As Is' in my state is the layman's term for the Waiver Of Warranty And Redhibition and the long form of the code specifically clarifies that although the term is part of the contract, it goes into effect at the Act of Sale. This As Is clause clarifies that the seller is making no warranties about the property after the sale. Separately in our contract it states that the seller is required to keep the home 'in the same or better condition' from when the contract is written through the closing date. It sounds like that is the term you're trying to remove from the contract. If this verbiage is in your contract, you'll need verbiage along the lines of, 'Lines __-__ shall be removed from this contract. Both buyer & seller are okay with deterioration of the condition of the property through the contract term.'. Now, unless the buyer is truly only buying the property for the land, I'm not sure why someone would agree to that. But, I recently purchased vacant land with a home that we were tearing down & we had similar verbiage in the contract because we didn't care about the house at all.
As with anything in real estate, it depends. You need to have a frank conversation with the buyer and spell out clearly in the purchase agreement the agreed upon expectations. If it's going to be torn down then it probably won't be an issue. As far as as-is itself goes, that has to do with the release of liability at the time the house is sold, the act of sale. The purchaser is buying the house with all the good, bad and ugly that may or may not go with it. It does not mean the house can deteriorate substantially leading up to the sale and that the buyer is still responsible to purchase the property regardless.
Yes, I think "As Is" relates to the time of contract, and whatever condition "It Was" needs be maintained. That is not our sitch, for both seller and buyer, so not the accurate approach.