REAL ESTATE

Feb 14 2020

#As is where is real estate – #Video

#As #is #where #is #real #estate



As is where is real estate

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what does As is sale mean? If the inspection report shows some major problems i.e Gas, electricity. Can I?

ask the seller to fix it before I remove the contingencies?

In California, there are two kinds of “AS IS”. One is the CAR purchase contract defined ‘As Is’, basically saying that the seller will not be responsible for any small repairs, such as little cracks on the wall, rip on the window screen, etc. This is a default on CAR forms and is for your ‘regular’ house. You will still negotiate for larger defective items.

Another one is the real ‘AS IS’, which usually requires a special “AS IS’ addendum which defines the items that are purchased ‘AS IS’, and basically says that the seller will not be doing any repairs nor will they pay any credit for repairs; this usually used for bank sale, trustee sale, or major fixer, or houses priced low or some sellers who just do not want to deal with this at all. This usually means there is no negotiation at all on repairs and you accept the house as is. . .

The fact is, in either case, you can always try and for repairs and/or credits. As long as you have inspection contingency and you have not removed the contingency yet, you ‘might’ be able to get out the contract fine. However, if you also waived the inspection contingency or if you have remove the inspection contingency, then you are in deeper water.

As I have not seen the details of your contract, it is difficult to say for sure, but those are the scenarios and there are many ways to work things out – all depends on both side’s motivation and negotiation skills. You really need to have your Realtor to look through the contact in detail to determine where you stand.

Also, depending on the local government regulation; in some places, the local government will require either seller or buyer to fix certain safety related issues. Then that’s another issue altogether.

Did you sign an As Is contract with the right to inspect? If so you would have had a cap of repairs indicated. In other words if you signed an as is contract with the right to inspect with a cap of $10,000. Then you have your home inspection. Get estimates of repairs and if they exceed $10,000. You can renegotiate or walk away and get your deposit back. However, if you signed a straight as is contract and none of your contingencies has anything to do with an ispection then you would be in jeopary of losing your good faith deposit of you do not close. You cannot refuse to remove contingencies that are not related. You can talk to your realtor (hope you have one), they may be able to unofficailly talk to the sellers realtor. But if push comes to shove you very well may lose your deposit.

Hope this helps,
Linda J Sears

“As is” means the buyer will receive the property at closing in the same current condition as when the contract was signed (leaving it to the buyer to inspect the property to see what is wrong PRIOR to signing the contract of sale). BUT virtually all contracts contain exceptions, i.e, that the electrical, heating, a/c, plumbing, utility systems and appliances will be in WORKING ORDER. Thus, you buy “as is” but with the major systems functioning. Now, some buyer’s attorneys are able to qualify the working order to read “GOOD working order” which is really a bonus to the buyer since it is a higher standard of acceptability.

So, major problems which affect functionality must be repaired by the seller.

In general, if you have an Inspection Addendum signed around and its still under its time limit. then that is what its all about. negotiation. You ask for repairs to be done. or a credit at closing so you can do them yourself. Some people prefer to do their own or hire their own repairs to be done to ensure that they are done correctly. and if not done right they would have more leverage with a Licensed Contractor to call them back to take care of it. Much will depend on what was agreed to in your Addenda.

In Washington State as with most states I am sure, all property is “sold as-is” unless otherwise stated that it comes with some kind of Warranty like new homes will do, or sometimes a seller will offer the buyer an aftermarket 1 year Warranty that can cost $300 or so. The value of those warranties is debatable, some love them and some don’t. I like to negotiate on my buyers behalf to get one paid for by the seller if there is not one offered. and I like to encourage my clients who are sellers to offer one NO MATTER WHAT. hey it just makes sense and they are cheap enough. Puts the buyer in a better frame of mind and the seller can always say that they did all they could to help the buyer. Win win.

After the fact:
Buyers do have certain rights in all States, even if the property was sold with a statement on the Listing and/or Purchase and Sale Agreement that states it is sold As-is, but that is subject to matters of Law and Consumer rights etc. – One example would be a “Sellers Disclosure Statement” . which can be an issue if something was not disclosed properly and later the buyer thought it was perhaps fraudulent, then the buyer could perhaps consult with an Attorney on the subject. Generally however, if the seller has to the best of their ability disclosed all known issues with the property a Lawyer may find that the seller is not liable. Again, its a matter for an Attorney in most cases.


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SOURCE: SOURCE: NEF2.COM
http://www.trulia.com/voices/Home_Buying/what_does_As_is_sale_mean_If_the_inspection_repor-15193

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