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A Purchase 'AS IS' .... advice

I have a former fellow co-worker (actually a hot babe ...ouch, can I type that?).. whom i ran into the other day and asked me about buying a house 'As Is'.

being a Title Guy, and not in the business too long...and not being a Realtor, I told her I'd check with my 'experts'. (You 'guys' are so great on info, opinions).

So the basic question is.... what does 'AS IS' mean (note, I didn't Google yet)

..... Inspection....faults of the property?

.... taxes owed?

...Liens?

...judgements?

..... Property lines?

........ Flood zones?

... open mortgages?

........ I'm not really sure what QUESTIONS to ask you..... I'm familier with the term, but do not know what 'AS IS ' means......

So..if you can give me overviews, comments, DETAILS of concern, etc..... I'd greatly appreciate it.

Thks,

Rob

Posted by Rob Robinson- Lehigh Valley PA on 04/26/2008 12:21 AM

Comments (13)

real estate, rob robinson, bertrum settlements, lehigh valley, allentown, pa, title insurance, closings, as is

Originally posted at: Rob Robinson Blogs: A Purchase 'AS IS' .... advice

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13 Comments on A Purchase 'AS IS' .... advice

APR

2008

Rob,

Just for the babe (LOL)

Anyway, in a very simplified manner, AS IS is different in FLorida from a standard residential contract in that you can have the inspection, but the Seller is not obligated to pay any of that.

SO, the buyer can get the professional inspector, obtain a report, and then decide whether she wants it or not. SHe, of course, can say that she wants it if...... but the Seller has no obligation to agree to that. Usually used for purchasing condos, condohotels, for short sales....

I am writing it in the middle of the night, so there may be a couple of other points, but I am sure the guys would add to my list for yur hot babe.

I am not sure if it is the same in every state. Our Real Estate Purchase contract has items that the seller warrantees, certain items like the furnace, roof etc. "As is" means that the seller doesn't warrantee these items, he won't repair them if there are problems. It doesn't mean that he is absolved from disclosing any known problems. I would tell your friend to definately get a home inspection prior to buying, it could save a lot of money in the long run.

Hi Rob,

Guess it depends on your state...however "as is" usually refers to the condition of the property. Contracts written "as is" can also be subject to inspections, clear title, etc. etc. It it's a cash sale I guess you could buy it irrespective of any conditions at all, big mistake yet possible.

Dude,..... do I know you? I come as is..... lol

Seriously, you must introduce me to your "hot babe" first, before I can answer. besides, you are married and I am single. ;o)

Anyhoo.... I am not a realtor, but both answers above are typically correct. The easiest way to think of this is just like buying a used car on a lot .... once you take it off the lot, you own it. No mechanic allowed. You'll see most of these types of sales from banks, REO's, and homes sold by HUD. Sure, you might have a few in there, from a regular sale, but that wouldn't be the norm. But I am sure certain regions are different also.

Thanks, and I welcome more opinions.... sorry I did not mention this is in Pennsylvania.

How does AS IS reflect in the Sales Agreement? (again, I'm blind on this)

Years ago a bright attorney and myself got into a discussion of what is "as is". That questions really depends on the individual who is selling the property means as "as is"? That seller is obligated to disclose what they know about the property and how they plan to turn it over.

Many sellers sell "as is" and provide pest clearance or a credit for repairs and call it "as is". This is a stimulating post.

Is AS IS reflective of just the PHYSICAL PROPERTY? (Not judgements, liens, etc.?)

It really isn't controlled by the state as much as it is controlled by the legal contract.

Relo usually sells "as-is" meaning after closing you can't come back to them for anything, but you are not limited with regard to inspections and negotiations prior to closing. So "as-is" can refer to after closing.

When a seller says "as-is" he means he priced it to be reduced to the point where all defects have already been accounted for in the price, so he's not budging another dime to pay for anything. You would still have an inspection to know what what defects you are being asked to overlook.

"As-is" should never refer to taking over mortgages and liens...that would be buying "subject to". It could be subject to existing liens, subject to existing leases, etc...

There are very few "as-is" sales these days, especially if they are financed with minimum down loans.

ARDELL - you are priceless.

More comments welcome as I will print this out,,,,,,,,'analyze' it, and pass it on.

Hi Rob, even here in NH it is basically as Ardell stated above. I couldn't agree with her more.

When my Mom sold her house in Philly, she wanted it to be "as-is". I told her she didn't get to tell other people what the did or didn't have to "suck up" :) Generally as a listing agent we need to explain that people buying a property to live in it never buy it "as-is" and are entitled to inspections and they are entitled to rethink the offer price, or negotiate for repairs, once they find out what is or isn't wrong with it.

The only true "as-is" sales are not dictated by the seller unless they are a bank or relo company or an estate sale, etc...or if "the value is in the land" and the house is selling at or close to lot value.

MAY

2008

Rob,

Basically, "AS IS" means: What you see is what you get" on the physical part of the house. Contingencies on the repairs of the home are not accepted on the "Agreement of Sale".

rob, I will call you back soon, promise. goin a little nuts right now, see my latest blog. I have you on the list for tommorow. did you get the answer to this question (this blog). Had a few shots of SoCo and a few beers, don't wanna read too much. BAD DAY!!! hope yours was wonderful!!!

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