We are not giving legal advice; we are sharing with you what ‘as is’ has been interpreted in today’s market.
The original intent of ‘as is’ in our Real Estate Contract was to represent that the person signing the contract as the seller has not lived in the property, and while they believe everything to be in working order, since they have not lived there, they are representing that everything is ‘as is’. ‘As is’ addendums/riders are typically used with properties being sold to settle an estate or trust, and for properties being sold as a result of a legal matter such as foreclosure or bankruptcy.
In today’s market, ‘as is’ has several different interpretations, and those interpretations may differ whether you are the buyer, the seller, the lender, the Realtor, and/or the attorney!
“AS IS” may mean the following:
- The seller says they are not willing to spend time or money making any repairs. Illinois is guided by the Illinois Residential Property Disclosure Act which requires the seller to disclose certain items as it relates to the property.
- The buyer’s interpretation of the seller claiming “as is” typically is that the property has a lot of problems and mechanicals, etc are not in working order. Most of the time, this is not the situation at all.
- On any occasion, the buyer is encouraged to complete a home inspection with a licensed home inspector (and not ‘Uncle John’ because he owns a lot of property!). Most of the time when a home inspection is completed and a deficiency MAY be determined, it is something that the seller is not aware of and, when made aware of this situation, the seller is willing to make the repair especially if it is for their own health and safety. Keep in mind that a property may have three different inspections which may result in three different opinions—a home inspector is similar to going to your family practitioner, and many times a specialist is called in to make a determination.
- A buyer may offer to purchase a property “as is” in an effort to shine in a multiple offer situation. What is understood is that the buyer will not make repair requests of the seller; however, the buyer, thru their attorney, still has the option to cancel the purchase. In this situation, most buyers wish to know what they MAY need to tend to once they own the property. And again, if the seller is made aware of a needed repair or maintenance, they may address it so they do not lose their buyer and still have to address it at a later time.
Communication and understanding is key to the use and interpretation of “as is” when buying or selling property. And the communication is key among all the parties involved in the transaction including the Realtors, attorneys, buyer, and seller. The goal is to get the property sold and treat all parties fairly.
Contact Pilmer Real Estate to discuss if buying or selling a home “As Is” is the right choice for you.