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I dug this up:
"As is" is actually a legal term and concept used to disclaim liability for the condition of the house being sold. It says that the seller is selling, and the buyer is buying the house in whatever condition it presently exists, and that the buyer is accepting the house "with all faults", whether or not immediately apparent. It is most commonly (and correctly) used in estate situations or when banks or relocation companies own the property, where the sellers may have never lived in the house and have no knowledge of any issues/defects.
This is the ultimate "buyer beware" situation, where a buyer must take the time to examine the home before accepting it. The buyer should also obtain expert inspection and legal advice and do what their experts recommend. They should also make sure their contract is contingent upon acceptable inspection approved by buyer, but understand that their only option is to take the house or walk-away, the seller is under no obligation to re-negotiate any inspection issues.
I dug this up:
"As is" is actually a legal term and concept used to disclaim liability for the condition of the house being sold. It says that the seller is selling, and the buyer is buying the house in whatever condition it presently exists, and that the buyer is accepting the house "with all faults", whether or not immediately apparent. It is most commonly (and correctly) used in estate situations or when banks or relocation companies own the property, where the sellers may have never lived in the house and have no knowledge of any issues/defects.
This is the ultimate "buyer beware" situation, where a buyer must take the time to examine the home before accepting it. The buyer should also obtain expert inspection and legal advice and do what their experts recommend. They should also make sure their contract is contingent upon acceptable inspection approved by buyer, but understand that their only option is to take the house or walk-away, the seller is under no obligation to re-negotiate any inspection issues.
I can't argue with any of this from a theoretical standpoint. But usually, in the real world, the seller wants to sell the house, not sit with it for the rest of his life. So he or she will usually make some accomodations, even though he is under no obligation to do so. And usually, so will the buyer, even though he or she is under no obligation to do so. It's more a matter of motivation than obligation. Playing hardball and saying "take it or leave it" is an option. It might even work. Most of the time the buyer walks though. After all, there is always another house. Negotiation works better than turning it into a boxing match.
Does the contract say anything about who should get the CO?
Quote:
Originally Posted by Marc Paolella
I can't argue with any of this from a theoretical standpoint. But usually, in the real world, the seller wants to sell the house, not sit with it for the rest of his life. So he or she will usually make some accomodations, even though he is under no obligation to do so. And usually, so will the buyer, even though he or she is under no obligation to do so. It's more a matter of motivation than obligation. Playing hardball and saying "take it or leave it" is an option. It might even work. Most of the time the buyer walks though. After all, there is always another house. Negotiation works better than turning it into a boxing match.
Marc, if you were the realtor representing the buyer, wouldn't you expect to see something in either the listing and/or the contract specifying that the buyer is responsible for the CO, if that's what was going to be expected? Of course everything might ultimately be negotiable, but as a buyer/lawyer representing a buyer, I'd not be happy to suddenly be asked to get a CO (which might entail spending $$ and time on a property I don't own, at least not yet) if I hadn't been told of that expectation in advance.
If the term "as is" is clearly stated in the contract, why should the buyer expect the seller to make the necessary improvements to get a c.o for the buyer? The term "as is" should mean just that, nothing else.
Should my Realtor explained in the contract after the "as is" clause that the buyer will be responsible for the c.o or should that be self-explanatory? Shouldn't the buyers lawyer interpreted the contract as so?
I don't know if it's different in PA, but I recently sold my Mom's NE Philly row house for her, and it too was sold "as is", bought by an investor who knew all the work it needed and was willing to do it, in exchange for a cheap house that will be worth 2-3 times what he paid for it once he fixes it up. I didn't have to do anything at all outside of show up to the titling agency and sign the papers. No inspections, no C.O.
If the term "as is" is clearly stated in the contract, why should the buyer expect the seller to make the necessary improvements to get a c.o for the buyer? The term "as is" should mean just that, nothing else.
Should my Realtor explained in the contract after the "as is" clause that the buyer will be responsible for the c.o or should that be self-explanatory? Shouldn't the buyers lawyer interpreted the contract as so?
In my experience (as a real estate lawyer as well as a home buyer), I have seen numerous as-is sales where the seller was responsible for obtaining the CO. I've also seen instances where the buyer was required to do so, but that was clearly stated in the listing and/or the contract. To me, "as is" does not necessarily imply "buyer gets CO". As Marc said, you can certainly try to negotiate, but I would not assume that the buyer will just gladly go along with getting the CO. A CO is something that you need to have in order to sell to the property-that's why IMO it's not assumed that the buyer should be responsible, even in an as-is sale.
Depending on which municipality you're in, it may or may not be a big deal. Some towns don't even require a CO for a SF residential resale, just a smoke/carbon monoxide detector certification. And different towns have different levels of scrutiny as far as issuing COs, for sure. But I'm assuming that you (or your realtor) have already determined that it will be an issue for you?
I don't know if it's different in PA, but I recently sold my Mom's NE Philly row house for her, and it too was sold "as is", bought by an investor who knew all the work it needed and was willing to do it, in exchange for a cheap house that will be worth 2-3 times what he paid for it once he fixes it up. I didn't have to do anything at all outside of show up to the titling agency and sign the papers. No inspections, no C.O.
Not sure about PA, but in NJ (at least the northern part of the state), inspections are absolutely standard for as-is sales. It's just that the seller is making it clear that he won't be addressing any issues found in the inspection. But the buyer can still walk away if they find major issues.
Personally I would not equate "as is" with getting a CO. To me the big difference is "as is" are things the buyer may or may not want to have corrected/fixed/changed. A CO is is not optional. Just my opinion.
Not sure about PA, but in NJ (at least the northern part of the state), inspections are absolutely standard for as-is sales. It's just that the seller is making it clear that he won't be addressing any issues found in the inspection. But the buyer can still walk away if they find major issues.
Exactly. How does a buyer even know what the "as is" condition is if they don't get an inspection?
I am selling my house in Bergen County, "as is"
My realter says I am responsible for getting the C.O for the new owner.
So far I know we are told we must get the permit, and carbon monoxide detectors (3) and I don't know what else.
Shouldn't the buyer be held to get the C.O?
Is a C.O. required in Bergen County for a resale?
I sell real estate primarily in Somerset County, and here there is no C.O. requirement for a resale residential property. Seller is responsible to obtain the fire/carbon monoxide safety certification, and well water certificate if applicable. I guess laws may differ there.
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