Home Selling in Monroe>Question Details

Jr, Home Buyer in Atlanta, GA

In a purchase and sell agreement, what does property sold "As Is" mean?

Asked by Jr, Atlanta, GA Sun Jun 13, 2010

Does it mean that you don't have to disclose things that are of substantial importance, like structural issues that you know about?

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Jr it may mean that the sellers don't have any specific information regarding the home - they can't make any representations (as in the case of an estate sale perhaps), or it just may mean that the seller doesn't want to address (or financially can't address) any repairs or issues. A foreclosure or short sale may be an "as is" sale, too
.If a seller does know about structural problems, howeve, they should be disclosed.


So - a home being sold in "as is" condition means the seller won't make any repairs.

That doesn't mean, however, that you can't have an inspection of the property.
It is advisable to do so. You should reserve the right to walk away if you find too many structural issues that you don't want to take care of.

Best wishes.............
1 vote Thank Flag Link Sun Jun 13, 2010
Jr.

The "As-Is" clause does not mean that repair requests cannot be made after inspections. The seller is usually stating that they don't know what they don't know, likely because they never lived at the property. In many cases, the seller will be more than willing to address the issues raised during your inspections, especially in the case of a new construction foreclosure. You'd be well advised to speak with an attorney or an agent about the implications of this clause before entering into an agreement where it is included.

Solomon Greene
REALTOR® Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Mon Jun 14, 2010
"AS IS" basically means what you see is what you get, but the seller is still required to disclose any material facts that they are aware of, ie "roof leaks, missing HVAC, etc" always get an inspection by certified professonal inspector to know exactly what you are purchasing. If you need any help in Monroe you may call me @ 770-315-8532, I have been a REALTOR in Monroe for over 12 years and have lived there most of my life. Good Luck with your as is property.
0 votes Thank Flag Link Mon Jun 14, 2010
Dear Buyer,
AS-IS in sales agreement should be discussed with your attorney as if some thing perticular u need to mention in your contract.
But generally the As-Is means that you get whay you see while taking a walk through to purchase the property. It could also mean that you do your research before buying. This is very common with REO's.
So be very carefull.
0 votes Thank Flag Link Mon Jun 14, 2010
Dear Jr. In a Purchase and Sale Agreement the term "as is" refers to the fact that the parties have agreed that the buyer will accept the property "as is, where is, what you see is what you get." Many times for whatever reason a property owner or bank prefers to price the property allowing for its condition, rather than full market value. Or, parties may negotiate to the "as is" position so that the buyer can pay a lower price.
From the seller's point of view, this does not relieve you of the duty to disclose., In fact, disclose everything for your protection as much as the buyers. Anything that you disclose to a buyer potentially insulates you from that buyer's successful lawsuit against you.
In most cases if you have disclosed a property condition the buyer would be unsuccessful in pursuing litigation against a seller after the fact. If you are aware of a property condition like a structural problem as you have indicated, you have two choices when it comes to selling residential real estate. 1. Bite the bullet, have the repair made and then sell your property at full market value. or 2. offer the property "as is" disclosing all property conditions, including the structural problem, and prepare to negotiate the price accordingly.
Best of luck to you in Monroe.
0 votes Thank Flag Link Mon Jun 14, 2010
Your question: In a purchase and sell agreement, what does property sold "As Is" mean?

Answer: The "As is" clause in a REO transaction relates to condition of the property and that the seller (the bank) has never leved in the property and does not know the defect(s), if any.

When you see an "As is" clause in ANY real estate transaction you are best to have every type of property inspection available completed on the property to determine if the are any structural, system, or physical and title defects.

In English: Get a pest inspection/termite report, a CLUE report (insurance claims), physical inspection from a licensed/bonded property inspector, a title policy, and have a contractor inspect the property if there are visable defects i.e. cracks and uneven surfaces. If it's a condo get the HOA package and review it.

I hope this helps you out.

Michael Friedman
0 votes Thank Flag Link Sun Jun 13, 2010
JR,

It's much like buying a used car. Sold AS IS means once you pay for it it's yours. If you drive it off the lot and it blows up it's your problem.

The home is being sold in it's current condition with no warranties or guarantees.
0 votes Thank Flag Link Sun Jun 13, 2010
"As-is" means that the property is being sold in its current condition, with all defects disclosed or not, without warranty, here's the house, thanks for the money.

Disclosures are a separate issue.
0 votes Thank Flag Link Sun Jun 13, 2010
"AS IS" simply means the premises are accepted by the buyer as they are, including physical defects.

An example is that, buyer A purchases property from seller B and later finds out the roof leaks. Seller be is not responsible for repairs to correct the problem.
0 votes Thank Flag Link Sun Jun 13, 2010
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