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The term “as-is” is one of those terms that may mean a little something different depending on which side of “as-is” you are standing on. Regardless, buying or selling something with the term “as-is” in the remarks does introduce a new wrinkle to the sale.
In theory, any “as is” language should involve some accompanying disclosure of any defect so that the buyer is aware of any seller knowledge of something that is missing, doesn’t function properly, etc. Many times you will see language such as this in many older homes “seller is aware of no known defects but fireplaces, chimneys and flues convey as-is.” This effectively removes the fireplace/flue/chimney as an item that can be a part of a request for repairs under the inspection clause (at least in theory it does.) It can be countered with other techniques in the contract, but for the most part, it is the correct application of the term.
“As Is” Listings In And Around Richmond
The term is misused when a seller DOES have knowledge of a defect, does not disclose it (which is a big ‘No-no’!) and then attempts to hide it with a blanket ‘as-is.’ Even though ‘as-is’ should not be used this way, many times sellers try and in some cases, they get away with it. Agents do no like the phrase as its incorrect use can also put the agent at risk and there is a lot of real estate case law on this topic….with not all of favorable to the agent.
Regardless, understanding the term is one issue…we are here to discuss what the term indicates.
Here is a list of properties that use “as-is” in the remarks. While there will be many properties that use “as-is” specifically (see the chimney/flue comment above), there will be many properties that use ‘as-is’ due to the fact the owner of record (a bank or other entity) has never lived in the house and is trying to absolve themselves of any repairs. It is also an indicator that the property may be in need of repair or renovation meaning an opportunity to use some ‘sweat equity’ or ‘elbow grease’ for flipping or just making a good deal.
Disclaimer – the use of the term “as-is” in the remarks is an indication but no guarantee of a property that may be priced below market. There is also no warranty, either express or implied, that the use of the term ‘as-is’ is used correctly by Realtors in the remarks about a property. Read the remakes carefully and understand that it is this Realtor’s recommendation that a property inspection, by a reputable and qualified home inspector, should be conducted on any property in accordance with contract terms to establish the condition of the property.