Portland Real Estate Questions: What is an “AS IS” Provision?
The AS IS provision (or clause) is typically found in most real estate purchase contracts
It’s important for home buyers to understand the “AS IS” provision. Each local real estate market is different and how the AS IS provision is written into the real estate contract to purchase (or Sales Agreement) is a very important provision for buyers to understand.
” ‘As Is’ denotes that the seller is selling, and the buyer is buying an item in whatever condition it presently exists, and that the buyer is accepting the item “with all faults”, whether or not immediately apparent. This is the classic buyer beware situation, where the careful buyer should take the time to examine the item before accepting it, or obtain expert advice.” ~~ Wikipedia
With our local standards of practice*, the AS IS provision is clearly written in the Sales Agreement we prepare on behalf of our buyer clients.
“AS-IS“: Except for Sellers’ express written agreement and written representations contained herein, and seller’s Property disclosures, if any, Buyer is purchasing the Property “AS-IS,” in its present condition and with all defects apparent or not apparent.”
“As Is” Does Not Mean “As If”
Buyer repair requests can be / may be negotiated with the sellers, even with an AS IS clause — but that’s another topic for another post.
The AS IS provision DOES negate the buyers from making claims of them not knowing they are buying a property AS IS. In other words, a buyer can’t say “I didn’t know I was buying the property AS IS.”
Real estate in real life example: The AS IS topic came up recently when a buyer emailed me the following:
“This seems to be a bad faith negotiation, in my opinion, constituting an “as is” stipulation without making that clear at the onset.”
Hmmmmmmm . . . the AS IS provision was quite clear on the onset of us preparing the offer for submission. It is language that is written into the Sales Agreement and is mutually agreed when the contract is fully executed between Buyers and Sellers.
The AS IS provision DOES NOT negate the rights of the Buyers to have the property — or any components — fully inspected
When the offer (Sales Agreement) is written, it takes over an hour for me to discuss the contents of the contract with my buyer clients. I go over the language, explaining what it means. Each important topic is discussed and what the provisions mean is explained.
The AS IS clause is always discussed in detail.
Please pay attention.
Read my previous articles:
- Portland Real Estate Questions: What is an “AS IS” Provision?
- Portland Real Estate Questions: How Can I Find a Good Home Inspector?
- Portland Real Estate Questions: Will Sellers Do ALL The Repairs?
- Portland Real Estate Questions: Is This Property Priced Right?
- 5 Questions to Ask Your Loan Officer
Buyers Agent Portland – Buyer Focused ~~ Buyer Results
Buyers Agent Portland, LLC is an Exclusive Buyer Agency serving the Portland Metro real estate market since 1999. The brokerage only represents Home Buyers and never home sellers. If you’re looking for a home anywhere in the Portland Metro area, there is no better representation than an Exclusive Buyers Agent. We assist investors, folks relocating to Portland area, those moving to Portland in-state, home buyers who are looking to down-size or move-up and of course . . . love working with first-time buyers. I help Buyers in the Portland Metro market find exactly what they need in the Tri-County markets of Clackamas County, Multnomah County and Washington County, as well Portland cities including but not limited to:
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When you’re ready, talk to an Exclusive Buyers Agent.
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Carla Muss-Jacobs, ABR, CEBA, e-PRO, Realtor
Buyers Agent Portland LLC
Buyers Agent Portland ~~ 100% BUYER REPRESENTATION . . . 100% of the Time