Does "As-is" always mean buyer beware?
Jessica White/DC Columnist
Issue date: 10/26/08 Section: Business
|
I am a first-time home buyer. The property I liked best is listed "as-is". I always thought that "as-is" meant that there was a problem with the property, but this house looks like it has been well maintained and in perfect condition. Why would someone sell their house "as-is" if the house is in perfect condition? Does this mean that there is something wrong with the house that I won't know about until I move in?
Mariella
Dear Mariella,
Every home buyer, not just those buying "as-is" properties, should get a professional home inspection to discover any defects the property may have. Buying a home "as-is" does not mean you cannot have it inspected, it means that the seller is announcing upfront his/her unwillingness to remedy or otherwise compensate the buyer for any defects the buyer or a home inspector may find. It is not necessarily a statement about the condition of the property; it is a statement about the sellers' willingness to correct the property's known defects.
Selling a house "as-is" was common during recent years, when real estate had double-digit appreciation rates and sellers were receiving multiple offers on their properties, often for over the asking price, and buyers were waiving their right to a home inspection and removing the home inspection contingency from the contract. These days, the "as-is" sale is less common. Buyers have increased bargaining power in negotiating the sales price and closing cost concessions, and they can once again submit offers with a home inspection contingency.
There are still times when it is necessary for a house to be sold "as-is," such as when an estate is selling the property of the deceased. In that case, the occupant has died, and the heirs, who may never have lived in the property, cannot be expected to know about possible defects. Government-owned properties or foreclosure properties face a similar situation - the seller does not occupy the property and therefore cannot reasonably be expected to know of any defects.
The laws regarding the sale of "as-is" property are different in Maryland and DC, and since you did not mention where the property is located we will look at how both jurisdictions treat the sale of "as-is" property. I have to warn you though - do not be surprised if it is difficult to understand. To describe the laws regarding "as-is" property as "convoluted" is being quite kind.
Be the first to comment on this story