As a Realtors, we repeatedly hear sellers use the phrase ‘As Is’. What comes to mind when you hear the term? As a seller you may think it solves all your problems. Think again.
Seller’s lawyers continue to ask that it be noted that the sale is As Is, although it has been built into the contract.
Specifically, the CAR purchase agreement, the most utilized contract in California, states under Section 11, “Condition of Property:Unless otherwise agreed in writing: (i) the Property is sold (a) “AS-IS” in its PRESENT physical condition as of the date of Acceptance and (b) subject to Buyer’s Investigation rights: (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance, and (iii) all debris and personal property not included in the sale shall be removed by Close of Escrow.”
This doesn’t mean the seller does not need to provide the buyer with inspections, although they should be prepared for unexpected results should they choose not to. Also, unless the buyer has removed their property contingencies, this does not mean that the buyer cannot come back to the seller and ask to amend their offer amount or ask the seller to make repairs. The seller also has a right to reject either of those requests. It is always advantageous to all parties that the seller conduct and provide a copy of inspections, and for the buyer to conduct their own. An investment of around $700 is not significant in comparison to a home that could potentially fetch over $1M, wouldn’t you agree? I always encourage
my sellers to do so for a variety of reasons.
Disclosing any major issues with the condition of the home will give the seller a more realistic expectation on what their home will sell for, and prevent needless re-negotiating of the contract, in addition to thwarting potential lawsuits down the road. Nobody likes surprises, especially those that don’t work in your favor!
As always, when in doubt, consult your Realtor.