What exactly does it do "HOW IS IT" Does it mean in real estate?
This is probably one of the most misunderstood terms in real estate! What exactly does “as is” mean in real estate? I have heard and read so many different interpretations so I decided to go to the source and get the correct answer! According to the National Association of Realtors, “as is” means …
… The property is sold in its current condition on the day the contract is accepted. So if on the day your offer was accepted, your house had a broken window or closet doors, etc., then the seller can legally sell the house “as is” and not do any work or repairs. Now if you didn’t have a broken window, etc. but it does when you do your final run, that’s a different story! The seller would have to fix it then!
Now, does this mean that the seller does not have to make repairs even if the buyer requests them? I’m afraid it’s true! You the buyer can and should do all of your inspections, from termites to home inspection, but if you find something and want the seller to fix it, legally you DO NOT have to! There’s more … read on!
The seller does not even have to legally respond to your request! Fortunately, I’ve never had a salesperson who doesn’t respond, but you never know, it can happen. So how do you know that the seller received your repair request? In short … not so! You have to trust your real estate agent and the real estate agent representing the seller who gave it to the seller. Most of the time, the seller will respond even if they are not doing any repairs.
Don’t worry too much. It makes sense for the seller to respond to your Repair Request and fix some of the items you requested. Why? Well, it is also legal for you to withdraw and cancel the deal if you are not satisfied with the seller’s response. The primary goal of all parties to a real estate transaction is to have a successful closing. Normally, buyer and seller can work out something to make both parties happy.
On page 4, article number 11 of the purchase contract, the explanation of “as is” continues. It establishes that the property must be kept in substantially the same condition as the day the buyers and sellers entered into the contract. Not only the home itself, but also the landscaping, pool, spa, and grounds must also be in substantially the same condition as the acceptance date. Of course, this is only valid if nothing else has been agreed in writing.
I had a buyer, when on his last tour, I saw that the pool had turned green. The seller had not continued with the service because he was selling his home. Buyers could have walked in, but instead we asked for compensation and refused to close until the issue was resolved. The seller, according to the “as is” part of the contract, had to fix the fund or give the buyers the money to do it themselves. The seller had the pool repaired quickly and everyone was happy!