HELP!! I have a contract to sell AS-IS with a termite damage clause

[sezzam]

Originally Posted by castricv

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Here is what the contract says (remember the whole doc is all of three pages and notorized)

11) Termite Inspection - Buyer will furnish a current inspection report issued by a licensed and bonded pest control company. Repairs and treatment, if any, shall be at the expense of seller.

This is immediately followed by 12....

12) Seller hereby gives, and Buyer hereby accepts, a disclaimer regarding said property, that Buyer is purchasing said property "as is", that is, with no warranties or representations whatsoever. Seller and Buyer both acknowledge the giving and acceptance of said disclaimer.
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First, I think Ted Bear is right that the term Buyer in #11 was really supposed to be seller.

In any case, as you have presented here, the buyer does a termite inspection and seller must fix whatever problems the inspection finds. My guess is that the latter part is what has you worried now.

It is hard to tell what the legal implications are if the buyer does not furnish a current inspection. You need to consult an attorney, even then I can easily see the the buyer's and seller's attorneys disagreeing on this.

If the buyer does not furnish a report, wait until the morning of the closing and have the buyer sign a waiver with a subtle hint that buyer is at default for not furnishing the report. However, I get the feeling the buyer is already prepared for that eventuality.

[yousah]

As-is sales can be tricky from a contract point of view because the as-is language is effectively negating some other terms in the contract. That's why you need a good attorney to draft original language to ensure consistency throughout the document.

One random thought-- if you order your own inspection and it shows infestation then you might be obligated to disclose it depending on the laws in your area. Sometimes it's best to not become more knowledgeable about the condition of your property.