Can I get out of a purchase before 17 days contingency If it is for "as is" property and home inspection came out with several major repais?

Asked by Wall-e, 91789 Sat Aug 7, 2010

Can I get out of a purchase before 17 days contingency If it is for "as is" property and home inspection came out with several major repais such as leaking shower pan, non-working whirpool bathtub, pool heater?

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Grace Hanamoto’s answer
Grace Hanamo…, Agent, Cupertino, CA
Sat Aug 7, 2010
Hello Wall-e and thanks for your post.

As my pal, Steve Ornellas pointed out below, there really is no such thing as an "as is" contract in California since all home sales are subject to the rights of inspection. The only time such rights are removed is when the buyer purposefully removes that contingency with the offer--a strategy that is sometimes employed to "strengthen" the offer in a multiple offer scenario.

Provided your inspection and condition contingency was not removed with the offer and remains intact, you can certainly cancel the contract within the contingency removal period, the default of which is 17 days after the execution of the contract.

However, as Steve noted below, perhaps the better strategy would be to negotiate the repairs with the Sellers. Assuming you really like the home and want to purchase it, working with the seller to get the property fixed is perhaps the best method to resolving these problems. The shower pan, the bathtub and the pool heater are relatively minor repairs and it might be to the best interest of all parties that these repairs be negotiated. Only if you cannot negotiate a resolution on the matter would I recommend canceling the purchase.

Talk with your agent about your concerns, and get his/her opinion on how to proceed! Good luck.

Grace Morioka, SRES
Area Pro Realty
San Jose, CA
1 vote
Steven Ornel…, Agent, Fremont, CA
Sat Aug 7, 2010
Hi Wall-e,

Assuming the standard CAR Residential Purchase contract is being used, you can certainly cancel the contract if you are within the 17-day inspection contingency period. However, you might also consider making your contingency removal "subject to" the Seller making certain repairs or providing a credit at some monetary level.

There really is no such thing as "As Is" in CA when it comes to Real Estate. A property purchase is always subject to a Buyer's investigative rights. Speak with your Realtor to come up with the best strategy regarding the property in question.

Best, Steve
0 votes
Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Sat Aug 7, 2010
Check with your agent. As long as you have not removed contingencies, you should be able to get out of the deal. Also, just because a deal is "as is" does not mean that the seller will not entertain a request for repairs. They are not REQUIRED to make the repairs, but if your offer is otherwise strong and they do not want to put the property back on the market, they may agree to fix the problems. If you really like the house, have your agent review this possibility with the listing agent before you cancel the contract. Dare to Dream.

Shel-lee Davis, CDPE, SFR, QSC
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
1 vote
Trinidad Gae…, Agent, Diamond Bar, CA
Sun Sep 19, 2010
if, there is a contingency period on the contract for inspections then absolutely. AS-IS simply means seller is not doing any repairs however if you find issues with the property and you wish to cancel your deal i would look into asking for concession for repairs. You'll be amaze how many lender would give you a credit when you present them with issues that they will have to probable have to address with future buyers anyway. Just a thought. Good Luck.
Trinidad Gaeta
Remax Realty 100
0 votes
Richard Schu…, Agent, Los Angeles, CA
Sat Aug 7, 2010
Yes! If you have an active inspection contingency you can get out.
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Aug 7, 2010
You will need to check your purchase agreement and see if it was contingent upon a satisfactory home inspection. if it was and you are within teh dates specified in your contract, you may. if it is not or you are outside your dates for an inspoection, you may not be able to. You should be asking your agent to guide you through this process. if this is sold as is, and the problems you found were hidden defects, that you could not see with your naked eye, you should ask teh seller to make the repair or credit you with teh amount, include pictures and written estimates. the seller may accept it as they would now have to disclose to another buyer. good luck with your purchase
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Robert Suarez, Agent, Toms River, NJ
Sat Aug 7, 2010
That is a question for your lawyer to answer as he would know what the contract would allow.
In general though, in New Jersey as a buyer you ( even in a " as is" sale) have the right to get the home inspected and then request to have any physical defects or environmental conditions ( other than Radon) cured. (all within the time line spelled out in the contract)
The seller then has to agree or disagree to cure the problems. If they do not agree to cure the problems the buyer has the right to void the contract within the specified time in the contract. These provisions of the contract are under the "Buyers right to inspection" and " Responsibilities to cure "
Again these questions are better answered by a Lawyer . I am just stating what is in New Jersey real estate contracts. So no matter what I stated here , you should ask your lawyer as he is the one who would know the law as it applies in your case.
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0 votes
Don Tepper, Agent, Burke, VA
Sat Aug 7, 2010
You should be able to, if you had an inspection contingency in your contract. It's always wise to have an inspection contingency, even (or especially) with "as is" properties.

Read your contract and/or check with your Realtor.

Hope that helps.
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