What Does “As Is” Mean?
Accepting a property “as is” as stated in Paragraph 7D(1) in the One to Four Family Residential Contract means a buyer accepts the property in its current condition at the time of the execution of the contract. Usually at the time of contract execution the buyer knows very little about the condition of the property. That’s why most buyers elect to pay an option fee per Paragraph 23, which allows a buyer an agreed upon number of days (option period) to perform their due diligence on the property. During the option period, inspections can be performed, and if deficiencies are found, the parties can negotiate to amend the contract to address repair items, or the buyer can terminate the contract.
If while preparing a contract the buyer already knows of repairs they want the seller to take care of, the buyer would check Paragraph 7D(2) in the One to Four Family Residential Contract and then list the desired repairs. If no repairs are known at the time of preparing the contract, the buyer would check Paragraph 7D(1) accepting the property “as is”. Whether Paragraphs 7D(1) or 7D(2) are chosen, a buyer may still request an option period which allows additional time to complete their due diligence to inspect the property.
To summarize, accepting a property “as is” doesn’t mean a buyer doesn’t get the opportunity to perform inspections and request repairs. “As is” means they accept the property based on what they knew during the contracting process.
***This post is not a substitute for the advice of an attorney.***