Selling Real Estate As Is

Define "As Is" regarding a real estate transaction. Does that include the termite clause?

2 Answers

" As Is" means the seller is selling the property with no garantees and is not willing to do any repairs to the property. What you see is what you get.

Normally, the buyer is allowed to have home inspections at buyers expense. If you (buyer) have elected Option 1 in the sales contract and there are more defects than you are willing to do, you can withdraw your offer and have all earnest money returned to you. However, you (buyer) are responsible for paying for the property inspections.

This is how "As Is" is interpreted in PA. For other States, check with your local Realtor for your States interpretation.

AS IS means that the property is sold without the seller making any repairs. This is standard procedure for foreclosure and pre-foreclosure short sale properties. Depending upon how it is used in the contract it can also mean the you accept the property condition as-is.

All the repair items may not be obvious so it is a good idea to get a liscense inspector to inspect the property. I have seen situations where the buyer didn't want to pay for an inspection because they felt that the seller wouldn't make an repairs anyway because it was being sold 'as-is'. However, this faulty logic. You need to know as much as possible about the risk you are assuming the property condition. And, yes that includes termites or any other condition requiring repair to obtain financing.

The seller's stated postioin is they will not fix or repair anything. Remember however, it never hurts to ask anyway. Sometimes if they really want and need to sell the property they will bend a little and make a few repairs despite the as-is clause. AS -IS may have some specific legal implicatoins as well so you might check with a RE attorney if there are any serious concerns.