"AS IS" and disclosure (foreclosures, sales, condos, price)

[OCNYISHOME]

While many realtors and sellers feel that the "as is" statement covers them if the sold home has a defect, most states, if not all, require material disclosure. Therefore if something is in need of repair, the seller must disclose and provide a remedy. The remedy can be an adjustment in purchase price, credit at closing, repair or a refusal to do same. The refusal is covered by the "as is" statement, meaning here that if a defect is discovered post purchase agreement, the seller has no plans or funds to remedy. But, a known defect can not be "covered up" by the use of the phrase "as is". Then "as is" would be the same as saying "buyer beware" which is not operable if the seller is aware of a defect and fails to disclose same. Disclosure forms are not filled out in this area of NY by most sellers not because defects exist but due to attorney advice. Most attorneys now feel that providing the form even when not hiding a defect opens the seller to greater liability. They pay the fine instead. Home is to be transfered in safe and habitable condition....."as is" does not remove the seller from that responsibility.................

[olecapt]

Originally Posted by OCNYISHOME

While many realtors and sellers feel that the "as is" statement covers them if the sold home has a defect, most states, if not all, require material disclosure. Therefore if something is in need of repair, the seller must disclose and provide a remedy. The remedy can be an adjustment in purchase price, credit at closing, repair or a refusal to do same. The refusal is covered by the "as is" statement, meaning here that if a defect is discovered post purchase agreement, the seller has no plans or funds to remedy. But, a known defect can not be "covered up" by the use of the phrase "as is". Then "as is" would be the same as saying "buyer beware" which is not operable if the seller is aware of a defect and fails to disclose same. Disclosure forms are not filled out in this area of NY by most sellers not because defects exist but due to attorney advice. Most attorneys now feel that providing the form even when not hiding a defect opens the seller to greater liability. They pay the fine instead. Home is to be transfered in safe and habitable condition....."as is" does not remove the seller from that responsibility.................

Depends. Holders in due course...foreclosures or relocation companies... are generally exempted from disclosure statutes. All here certainly are and in most states.

In fact in many states you can duck disclosure of a defect by using a relocation company if you have the ability to do so.

[middle-aged mom]

It's always interesting to read about how different states handle common situations. I just snagged this as it relates to NY:

Other key provisions include a requirement that a copy of the completed form be attached to the contract or a $500 credit is given to the buyer at closing for the seller’s failure to provide the completed form. The new law does not apply to new construction, condos and co-ops.

This would not fly in my state unless both parties agreed to it or it was a holders in due course, foreclosure, estate sales and sometimes relo acquired.