Sample “As Is” Clauses:

Condition of Property.  Purchaser acknowledges and represents that Purchaser is fully aware of the physical condition and state of repair of the Premises and of all the other property included in this sale, based on Purchaser's own inspection and investigation thereof, and that Purchaser is entering into this contract based solely upon such inspection and investigation and not upon any information, data, statements or representations, written or oral, as to the physical condition, state of repair, use, cost of operation or any other matter related to the Premises or the other property included in the sale, given or made by Seller or its representatives, and shall accept the same "as is" in their present condition and state of repair, subject to reasonable use, wear, tear and natural deterioration between the date hereof and the date of closing (except as otherwise set forth in paragraph 16(e)), without any reduction in the purchase price or claim of any kind for any change in such condition by reason thereof subsequent to the date of this contract.  Purchaser and its authorized representatives shall have the right, at reasonable times and upon reasonable notice (by telephone or otherwise) to Seller, to inspect the Premises before Closing.

Notwithstanding anything herein to the contrary, Seller makes no representations

whatsoever as to the condition of the premises and Purchaser agrees to accept same “as is” in its current condition. However, Seller represents that the appliances and the plumbing, heating and electrical systems will all be in working order and the roof free from leaks at the time of closing.                                                                                          

In real estate, "as is" means the seller is selling the property in its current condition, without making any repairs or modifications. The buyer accepts the property as it is, with all its known and unknown defects. While inspections are still allowed, the buyer cannot typically request the seller to fix any issues discovered.

Key Aspects of "As Is" in Real Estate:

·         No Repairs or Modifications: The seller is not obligated to fix anything or offer credits for repairs.

·         Buyer Takes on Risk: Buyers should be prepared to handle any necessary repairs or renovations after the purchase.

·         Inspection Rights: Buyers can still conduct inspections to assess the property's condition.

·         Disclosure Requirements: Sellers are still required to disclose known material defects, even in an "as is" sale.

Potential for Negotiation:

While the seller is not obligated to make repairs, negotiations might still be possible, but the seller may be less inclined to negotiate.

Legal Implications:

It's crucial to have a well-drafted "as is" clause in the contract and understand the legal implications in your specific state.

Pros and Cons of Buying "As Is":

For Buyers:

• Potential for Lower Price: Properties sold "as is" might be priced lower due to the inherent risk for the buyer.
• Faster Process: The sale might proceed more quickly as there are no repair negotiations.
• Opportunity for Investment: "As is" sales can be attractive for investors looking to renovate or flip properties.
• Risks: Buyers should be prepared for potential costly repairs, health hazards, or unexpected issues.

For Sellers:

• Less Effort and Cost: Sellers don't have to invest time or money in repairs.
• Faster Sale: The sale might be quicker as there are fewer negotiations.
• Potential for Higher Price: Sellers might be able to justify a higher price due to the lack of obligation to make repairs.
• Reduced Liability: Sellers can limit their liability by selling the property "as is".
• Potential for Lower Offers: Buyers might offer less due to the risk associated with the purchase.