Home Buying in 20170>Question Details

Rick, Home Buyer in 20170

Why would a seller insist on an "as is at settlement" clause?

Asked by Rick, 20170 Mon Sep 28, 2009

I'm paying good money for an inspection of the house 3 to 5 months prior to the date I expect us to close (it's a short sale, so closing date is anybody's guess). Shouldn't I be able to expect the house to be in the same condition as it is now at the time I made the offer? The offer was finally ratified by the seller (although not the bank yet) without the clause, but why would they be so insistent that this clause be added? It makes me feel like they're up to something shady. Is this normal practice for seller's agents?

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Hi, there is nothing "shady". If you were buying a Foreclosure/REO you will sign it too. Just think about it. You are short selling, the bank is behind all your goods and then, the unexpected happen. Something breakes at the house you sold and the buyer is behin you too. That is a sellers protection but required.
I have to say that I do not know how it works in Virginia but here in Minnesota, inspections are done after short sale approval. This way, there is almost no money wasted but time and gas.
Is inspection required before short sale approval in your state?
There is nothing that the property will be the same once the short sale approval recieved.

Buy!
0 votes Thank Flag Link Mon Sep 28, 2009
The house should be in the same condition at closing as it was when the contract was signed. Almost all short sales have as-is contingencies. You can still do a home inspection for your own informational purposes. The seller probably will not do any repairs or give any credits. If there are issues on the inspection and you are not ok with them, then you do not have to go through with the purchase.
0 votes Thank Flag Link Mon Sep 28, 2009
It is typically not included in real estate association/state approved contract forms, but I always offer my seller clients the option of including an AS-IS, WHERE IS AND WITH ALL FAULTS provision in their sales contracts and 9 out of 10 do so. It does not mean anything "shady" is going on, it simply means that you are depending on your own inspections, etc. to determine the condition of the house and you will not come back and sue the seller regarding the condition of the home unless the seller failed to disclose a material defect in the house or otherwise committed fraud. Unless you intend to sue the seller, it really shouldn't matter to you if this provision is included.
0 votes Thank Flag Link Mon Sep 28, 2009
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