What Is An "As Is" Contract?

Posted by Eric Peterson on Monday, September 16th, 2019 at 3:22pm.

 

Selling your home isn’t like selling a toaster on Craigslist or selling your car at the CVS parking lot. There is often a misunderstanding of what as As Is contract means.

I had a client whose AC wasn’t working when the buyer performed their inspection. When the HVAC tech arrived at the property, he told my client she didn’t have to repair the AC because real estate contracts are As Is.

Technically the tech is correct but there is a big difference between what happens after going under contract on your home with an As Is contract and how things play out in the end. 

When a buyer makes an offer for your home they will check off if the contract is As Is or if the buyer is requesting any specific repairs and treatments. By far the majority of contracts are done As Is. An example of a specific repair or treatment might be the buyer asking the seller to paint a wall blue.

Where the misunderstanding comes into play is a seller thinking a real estate As Is contract is the same as selling your toaster and you never hear from the buyer again. The section of the contract where a buyer checks off As Is also clearly states that a buyer still has the right to inspect the property, negotiate any repairs or treatments in a subsequent amendment or terminate the contract during the Option Period. The option period is a number of days where the buyer usually will have a home inspected. 

What that means is even if your contract is As Is the buyer will likely still have an inspection performed and possibly attempt to negotiate repair items. You as the seller of your home are not obligated to make any repairs and if an agreement can’t be made the buyer has the right to terminate the contract.

In addition to understanding the contract it is also important to understand even if a contract is As Is that doesn’t remove your obligation to disclose defects in the property when it is being sold.

 None of this should scare you and in most situations everything works out fine in the end. When considering which Realtor you hire to sell your home something you should consider is how they will handle these situations. We have a successful track record of helping our clients from start to finish and you can always rely on our experience and negotiating ability to walk you through this process.

If you are planning to sell your home and you’d like to talk about any aspects of the real estate contract or items with your home that might be a concern in an inspection call me directly at 512-791-7473 or eric@koparealestate.com

Have a Question?

Contact Us Now!

Please provide a valid email address.

Leave a Comment

Format example: you@domain.com
Format example: yourwebsitename.com