|
“As is” refers to a legal situation when a purchaser buys an item in its exact present condition from the seller. In real estate scenario, this term indicates that a house is sold in an “as is” and “with all faults” condition, if it is sold in its current condition and requires repairs and improvements. When a buyer purchases a property in an “as is sale” situation, he purchases it in its present condition and is ready to perform all the necessary repairs and improvements that the property needs. In these cases, it’s not the seller’s responsibility to improve or repair the selling property before handing it over to the buyer. Below are answers to few of the more common legal questions about “As Is” condition of property: I decided to buy a house in “as is” condition. However, one week before I signed the contract I found out on my own that there is a major gas leak in the house. When I asked my seller to fix that, he said it’s not his responsibility to fix the leak as the house is already sold. However, I did not go through a processional house inspection. How can I fight back?
Usually, if a property is sold “as is” it has to be taken in just the way it’s being sold. In such cases, the owner is not responsible to make any repairs, changes, deductions, or improvements to the property. Now the reason you were expected to make a professional house inspection in your due diligence period was to verify if there were any major issues with the house that needs a repair. The main purpose of this inspection was to inform you about the exact condition of the house. In this case, what you could do is check your contract to see if you have a time period within which you can withdraw from the contract, in case you find out about any major defects in your property. However, if you do not have that option in the contract to withdraw, then it is not possible for you to close the deal. In such a situation, you have to lose the deposit along with the fact that you could be sued for other damages within the property. Therefore, it is completely up to you to take the house and repair the leakage or lose the deposit and make payments for other damages. Our previous landlord sent us a letter stating that we won’t be getting our security deposit back. The letter also mentioned the improvements that the landlord had done to the property. But the fact is, the landlord had purchased the property in the middle of the lease and the house was bought in an “as is” condition. In addition to that, the landlord did not bring up any of the problems to us when we left and on top of that got new tenants to the house. What are our rights now?
In this case, you have the right to go to the small claims court and sue your landlord. Moreover, it is possible that you could provide evidence on the fact that you or your family did not cause any damage to the property due to which the landlord had to do such improvements on the property. Therefore, the improvement cost should not be taken from your deposit money. As a seller, it is very important for you to notify your real estate agent as well as mention it in your advertisement while listing the place for sale, that you are selling your property “as is”. Moreover, your purchase contract should also highlight the fact that your property is being sold in a “as is” condition. Certain states prefer to make the “as is” status clear in their contract by adding an "As Is Addendum" to it. The seller should have the defects within the property disclosed to its buyer and have him/her sign a disclosure so that the buyer is aware of all the problems before the sale is done. The seller must also let the buyer inspect the property. Finally, if the buyer comes across something which he/she is not ready to accept after the property inspection is done the seller should let the buyer have a chance for withdrawing from the sale. If you need any clarification about your particular situation, you may wish to ask a real estate lawyer.
Related Articles -
as-is condition, as-is real estate, as-is property, as-is property sale, as-is condition sales addendum, selling property as-is, as-is sales contract,
|
