Does "As-is" always mean buyer beware?
Jessica White/DC Columnist
Issue date: 10/26/08 Section: Business
"In Maryland, sellers can fill out a property disclaimer (saying they choose to not fill out a disclosure) or a disclosure (a standard form that includes various types of property defects), but if they fill out a disclaimer they are still obligated to disclose known material defects," according to called Larry Kamins, sales manager at Prudential Carruthers Realtors on Capitol Hill.
"It's just that the disclosure form may or may not touch on the material defects of that property. In D.C., if the buyer states that he or she will occupy the property, the seller must fill out a property conditions disclosure. If the seller does not provide the form, the buyer can exit the contract at any time. If the buyer goes to settlement without receiving the form, the buyer waives his or her right to receive it, but the seller still has liability if it is not filled out." (Are you still with me on this?)
"If you are an investor buying a property in D.C., you are not entitled to receive any disclosure documents," continued Kamins. "If you are buying property as an investment you are considered to be a professional and are not the person the law is protecting."
If you are a non-professional buying a home in D.C., it gets even more confusing: the disclosure only has to be accurate as of the date it was signed and not the date it was given to the buyer, and by extension does not have to be accurate on the date of settlement.
Buying a house "as-is" does not necessarily mean you are about to be deceived by the seller and wind up with expensive home repairs. But to protect yourself, hire the best home inspector you can, whether you buy an "as-is" property or one with a full list of disclosures. You can find inspectors in your area by going to the American Society of Home Inspectors Web site at hwww.ashi.org. Unless your real estate agent removed the home inspection contingency from your purchase offer, you can renegotiate with the seller or walk away from the deal altogether depending on what the home inspector discovers. Best of luck,
Jessica White, also known as "Ms. Mortgage Maven," is a mortgage consultant with Tenacity Mortgage. Call or email her to discuss your home purchase or refinancing needs, including FHA loans and loans in "declining markets". She can be reached at 202-607-4449,Jessica@msmortgagemaven.com or jessicawhite@tenacitygroup.com. You can also apply online at www.msmortgagemaven.com.
"It's just that the disclosure form may or may not touch on the material defects of that property. In D.C., if the buyer states that he or she will occupy the property, the seller must fill out a property conditions disclosure. If the seller does not provide the form, the buyer can exit the contract at any time. If the buyer goes to settlement without receiving the form, the buyer waives his or her right to receive it, but the seller still has liability if it is not filled out." (Are you still with me on this?)
"If you are an investor buying a property in D.C., you are not entitled to receive any disclosure documents," continued Kamins. "If you are buying property as an investment you are considered to be a professional and are not the person the law is protecting."
If you are a non-professional buying a home in D.C., it gets even more confusing: the disclosure only has to be accurate as of the date it was signed and not the date it was given to the buyer, and by extension does not have to be accurate on the date of settlement.
Buying a house "as-is" does not necessarily mean you are about to be deceived by the seller and wind up with expensive home repairs. But to protect yourself, hire the best home inspector you can, whether you buy an "as-is" property or one with a full list of disclosures. You can find inspectors in your area by going to the American Society of Home Inspectors Web site at hwww.ashi.org. Unless your real estate agent removed the home inspection contingency from your purchase offer, you can renegotiate with the seller or walk away from the deal altogether depending on what the home inspector discovers. Best of luck,
Jessica White, also known as "Ms. Mortgage Maven," is a mortgage consultant with Tenacity Mortgage. Call or email her to discuss your home purchase or refinancing needs, including FHA loans and loans in "declining markets". She can be reached at 202-607-4449,Jessica@msmortgagemaven.com or jessicawhite@tenacitygroup.com. You can also apply online at www.msmortgagemaven.com.
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