Home listed as “As Is” – What does that mean?
Typically, a home that is listed “As Is” indicates that the seller is not making any warranties about the condition of the property. Selling “as is” does not necessarily mean that anything is wrong with the property. Perhaps it is being sold to settle an estate where the Seller inherited the property and has never occupied it. He may have no idea as to the condition of the roof, appliances and air conditioning system and does not want the liability of selling a “warranted” property having never lived in it.
Buying “as is” means that you are agreeing to shoulder the costs for any obvious defects, from ripped screens to stained carpeting. That said, “as is” does not release a seller from disclosing all known material issues. Hidden defects that sellers know about should be listed on the property disclosure form. It can be beneficial for a Buyer to purchase a home “As Is with Right to Inspect”. This means that the Buyer is still allowed to have the customary inspections (Roof, home, termite and chimney inspections) within a designated time period after the full execution of the contract by the Buyer and Seller. The difference being that the Seller is not obligated to make repairs to warranted items. However, in this type of purchase contract the Buyer usually has the right to cancel the contract and receive a return of his earnest money deposit if the condition of the property is unacceptable. As with any buying transaction, be sure to consult with your real estate agent regarding the purchase of an “as is” property.
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