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[Layman's thought]: Having the inspection report might be some protection for you. Major damages not recorded in the report, and that are likely to have occurred between inspection and closing, are therefore more easily identifiable. Perhaps you could use this to get out of your contract according to the clause on condition that you mentioned.
I would imagine that most folks selling As Is would be doing so simply because they are financially/physically unable or unwilling to fix a myriad of small problems that a buyer brings up. I could see this happening for with an Estate sale or a farm or an older vacation home, for example. What ever happened to people fixing the little stuff themselves once they moved in?
The as-is provision should be effective after the closing, and not during the period between contract acceptance and closing.
Also, if the seller wants to sell as-is then this is something that should have been disclosed in the MLS so that potential buyers who don't want to buy with this clause don't waste their time even looking at the house.
You definitely need an attorney to draft this and I'm always astonished at agents who tell their clients that they don't need any attorney. That's just opening them up to a lawsuit, and also presents a problem with them actually practicing law by modifying the contract in such a significant way.
Most contracts state that on final walk through the house should look like the day your purchased it. "normal wear and tear accepted"...how did the house look when you saw it? Must have been nice enough for your to want to make an offer. What the "as is" does, as someone else stated is stop negotiations on repairs between buyer and seller. In my experience, buyers want a credit for a major repair and then want to hire someone in their corner to do a fair and equitable job of that repair. If a seller hires someone, it could be and often is, the cheapest, kluge type repair they can get away with. After all, they are contractually and emotionally, "out of that house". I would most definitely hire an attorney and one of your choosing, not one recommended by an agent who didn't want you to hire one in the first place. Hire an inspector recommended by someone who's opinion you value and go from there. If there is too much wrong with the house, you are out the inspector's fee only. But, you make sure the "walk after unacceptable home inspection" is in the contract and initialed/signed by both parties. What is the worst that can happen....you have full knowledge of the undesirable elements of that house and dodged a bullet and the best thing is that there are just minor problems and you have purchased a property you obviously like.
What ever happened to people fixing the little stuff themselves once they moved in?
I don't think that is the OP's issue. As-is has a specific legal ramifications for buyers. Agents often refer to a house as-is when they really mean that the seller doesn't want to negotiate over repairs. These are two different things. This is an easily solved problem, IMO, and the agents just need to get the verbiage correct to satisfy the buyer and seller's desires.
I would not get fussy about fixing little stuff. I expect I will fix some things and modify others to my liking. The house is reasonably priced, therefore, minor fixes don't worry me and it's the reason I made the offer at full listing price.
But this whole "as is" thing has me confused and I think I have a right to understand it better before I agree to it. It could harm me down the road in ways I don't currently understand. There seem to be different meanings/ types of "as is", some more or less damaging to the buyer.
There's an option for an contingency of a general home inspection that states seller will not make repairs and the inspection is solely for buyer's information and ability to determine whether to proceed. I would be okay with that because it leaves the rest of the contract alone (the "rest of the contract" being sections referring to issues pertaining to the condition of the home - as in "seller has to keep it in the accepted condition and keep mechanical things in working condition and be responsible for damages that occur between inspection and handing it over at settlement, etc). If something goes wrong between inspection and settlement, I should have some rights to at least walk away since I agreed to it based on it's condition as it was at THE TIME OF INSPECTION. I expect that to be it's condition when I go move in. The as-is addendum does not make it clear that it would be so. Maybe it wants to say that, but it doesn't actually as it stands right now.
I would not get fussy about fixing little stuff. I expect I will fix some things and modify others to my liking. The house is reasonably priced, therefore, minor fixes don't worry me and it's the reason I made the offer at full listing price.
But this whole "as is" thing has me confused and I think I have a right to understand it better before I agree to it. It could harm me down the road in ways I don't currently understand. There seem to be different meanings/ types of "as is", some more or less damaging to the buyer.
There's an option for an contingency of a general home inspection that states seller will not make repairs and the inspection is solely for buyer's information and ability to determine whether to proceed. I would be okay with that because it leaves the rest of the contract alone (the "rest of the contract" being sections referring to issues pertaining to the condition of the home - as in "seller has to keep it in the accepted condition and keep mechanical things in working condition and be responsible for damages that occur between inspection and handing it over at settlement, etc). If something goes wrong between inspection and settlement, I should have some rights to at least walk away since I agreed to it based on it's condition as it was at THE TIME OF INSPECTION. I expect that to be it's condition when I go move in. The as-is addendum does not make it clear that it would be so. Maybe it wants to say that, but it doesn't actually as it stands right now.
Find out what the intentions of the seller are with the request for as-is. You have to remember that addendums overwrite/change clauses in the main body of the contract so don't let yourself be pressured into signing something you don't understand. I bet you could call a real estate attorney tomorrow and ask for a quick 15-30 minute consult to explain what as-is means in your state. It wouldn't cost you very much.
The as-is clause transfers the risk of loss to the buyer where just wanting to not negotiate over repairs does not.
That is my concern exactly.
Quote:
Find out what the intentions of the seller are with the request for as-is. You have to remember that addendums overwrite/change clauses in the main body of the contract so don't let yourself be pressured into signing something you don't understand. I bet you could call a real estate attorney tomorrow and ask for a quick 15-30 minute consult to explain what as-is means in your state. It wouldn't cost you very much.
I will. Thank you! It helps to have someone understand my concern.
The as-is provision should be effective after the closing, and not during the period between contract acceptance and closing.
Also, if the seller wants to sell as-is then this is something that should have been disclosed in the MLS so that potential buyers who don't want to buy with this clause don't waste their time even looking at the house.
You definitely need an attorney to draft this and I'm always astonished at agents who tell their clients that they don't need any attorney. That's just opening them up to a lawsuit, and also presents a problem with them actually practicing law by modifying the contract in such a significant way.
The agent didn't tell this client they do not need an attorney. That is for the client to decide. In some states it attorneys aren't normally used in real estate transactions and the agent has only stated the truth which is that they do not have to hire one. It is optional.
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