“As-is” is probably one of the most misunderstood phrases in real estate jargon today.
Many sellers and buyers assume that if the terms “as-is” go into their sale, the buyers must simply accept the property in its current state. Sellers in fact are quite elated at times to get this terminology included in a contract, and sometimes the term is used in negotiations as a tool….
HOWEVER…. The truth is ALL HOMES ARE SOLD AS-IS unless otherwise negotiated during a home inspection contingency period.
In fact most contracts already contain standard language stating such. So unless an inspection period is waived by the buyer, a statement of as-is elsewhere in the contract means almost nothing at all. At best, adding an as-is clause to any contract containing an inspection period simply makes a statement – the seller does not wish to make repairs or negotiate further. But in all actuality, it binds no one, as the buyer can still walk away, or renegotiate during their inspection contingency period, based on inspection findings.
Last Updated on September 25, 2017 by Minna Reid