You may have seen ads in the newspaper: House For Sale in “As Is” condition. Do you know what this really means to you as a Buyer? In most cases this means that the Seller is not providing any type of warranty on the property. Perhaps it is being sold to settle an estate where the Seller inherited the property and has never occupied it. He may have no idea as to the condition of the roof, appliances and air conditioning system and does not want the liability of selling a “warranted” property having never lived in it.
It can be beneficial for a Buyer to purchase a home “As Is with Right to Inspect”. This means that the Buyer is still allowed to have the customary inspections within a designated time period after the full execution of the contract by the Buyer and Seller. The difference being that the Seller is NOT obligated to make repairs to warranted items. However, in this type of purchase contract the Buyer usually has the right to cancel the contract and receive a return of his earnest money deposit if the condition of the property is totally unacceptable making the Buyer fully protected. Also the purchase price of this type of property is usually lower to reflect the condition.
Bank-owned properties may also be sold “As Is”. As a rule, banks are not interested in giving warranties on foreclosed property even if it is a newer home. “As Is” could also be advantageous to the Buyer in this situation.