Actually, it’s the almost “as-is” sale. In California, the sellers cannot waive their responsibility to disclose material facts about the property. 

In general, the phrase “as-is” means that the property is being sold in its present condition and without a warranty. 

Buyers have basic expectations regarding the habitability of any property they are interested in purchasing. Generally, this means that the roof is free of known leaks and the home’s plumbing, electrical and other systems are in working order. If there are problems with the property, the seller must disclose this information to the buyer. 

What “As-Is” really means

What the “as-is” condition clause really communicates is that the seller will not be responsible for the cost of repairing any defects, and that the buyer is taking the property with all obvious and patent defects. 

There is a catch, though. The “as-is” seller is not insulated from any liability stemming from intentional or negligent misrepresentation, or for failing to reveal concealed defects not apparent during an inspection.

When there are several buyers going after the same listing, the savvy buyer might use the “as-is” clause to bolster their offer against the competition. In this situation, sellers prefer an “as is” offer because they know there will be no request for repairs. If you choose to go this route, make sure that your “as-is” offer includes an inspection contingency. 

The bottom line

Buyers often see the “as-is” condition as a red flag, that there’s something seriously wrong with the property. Actually, this is often not the case. Many “as-is” sellers are simply saying, “I’m not going to fix anything.”

What’s most important here is to never forget that a home purchase is about negotiations. In a soft market, most sellers are willing to address and repair their home’s defects. 

Last updated on January 24, 2012 by Blake Roberts