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This is probably one of the most misunderstood terms in real estate! What exactly does “as is” mean in real estate? I 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 was accepted. So, if on the day your offer was accepted, your home had a broken window or missing closet doors, etc., then the seller can legally sell the home “as is” and not do any work or repairs! ! Now if it didn’t have a broken window etc… but does when you do your final run, well 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 any repairs even if the buyer requested them? I’m afraid it’s true! You, the buyer, can and should do all of your inspections, from termites to a home inspection, but if you find something and want the seller to fix it, you legally DO NOT have to! There’s more… keep reading!
The seller doesn’t even have to legally respond to your request! Fortunately I have never had a seller not respond but you never know, it can happen. So how does he know that the seller received the repair request from him? In short… you don’t! You have to trust your real estate agent and the real estate agent representing the seller that they gave it to the seller. Most of the time, the seller will respond even if he is not doing any repairs.
Do not worry too much. It makes sense for the seller to respond to his repair request and fix some of the items he requested. Why? Well, it’s also legal for you to back out and cancel the deal if you’re not happy with the seller’s response. The primary goal of all parties in a real estate transaction is to have a successful closing. Normally, the buyer and the seller can come to an agreement so that both parties are happy.
On page 4, item number 11 of the Purchase Agreement, the explanation of “as is” continues. It establishes that the property must be maintained 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 be in substantially the same condition as on the date of acceptance. Of course, this is only valid if nothing else has been agreed in writing.
I had a buyer, when he did his last tour he saw that the pool had turned green. The seller had not continued to service him because he was selling his house. The buyers could have walked, but instead we asked for compensation and refused to close until the issue was resolved. The seller, under the “as is” part of the contract, had to fix the pool or give the buyers the money to do it themselves. The seller had the pool repaired quickly and everyone was happy!