When you are entering into a contract to buy a home and you are told that the home is being sold ‘AS IS’…what goes through your mind? Some think of the old movie “Money Pit”. In some cases you wouldn’t be completely wrong.
Now lately in some cases here in Arizona sellers are choosing to sell their home with this addendum attached. So what rights are you giving up if you agree to “As Is”;
And I quote from the link above;
The buyer waives the seller warranties pursuant to Section 5a of the residential contract. Therefore, the seller has no obligation to make any repairs to ensure that heating, cooling, mechanical, plumbing, and electrical systems (including swimming pool and/or spa, motors, filter systems, cleaning systems, and heaters, if any), free-standing range/oven, and built-in appliances are in working condition at the earlier of possession or close of escrow. However, the seller is obligated to maintain and repair the premises so that the premises is in substantially the same condition as on the date of contract acceptance, and all personal property not included in the sale and all debris will be removed. For example, if the swimming pool motor is not in working condition at the time of contract acceptance, the Addendum releases the seller from the obligation to repair it pursuant to Section 5a of the residential contract. If the swimming pool motor was in working condition at the time of contract acceptance, but malfunctions during escrow, the seller is obligated to make repairs so that the pool motor is in substantially the same condition at close of escrow.
The “As Is” Addendum also requires the seller to acknowledge that selling the home “As Is” does not relieve the seller of the legal obligation to disclose all known material latent defects to the buyer. Additionally, the buyer acknowledges that the buyer has been advised to seek appropriate counsel regarding the risks of buying a home in “As Is” condition. Both buyers and sellers should be educated about the provisions of the AAR “As Is” Addendum prior to its execution and counseled as to their rights and obligations in an “As Is” transaction.
Click on the link to find out more and make sure you know your rights!
