These contracts are being used extensively in our area. I consider it an option to buy. Either party can walk for any reason up to closing. I have had one cancelled by a buyer who discovered that there was chinese drywall in the house next door and cancelled the contract. The best option is to use the FarBar with an as-is addendum. That at least is a real contract binding both parties.
In As-Is the seller is not guaranteeing the condition of the property, that does not mean that they should not supply the sellers disclosure, they should. During the buyers inspection of the property, they will not have the resources to make any repairs, so the property is being sold as-is. It makes your buyers inspection critical.
Hope this helps.
Debbie Albert, PA
Coldwell Banker Residential