Buying "AS IT" property

**housemark** · 03-13-2008, 11:49 PM

We made a offer to buy an bank own short property.
Looking t the Addendum, it says:
This "As IS" addendum supersedes nd renders without force or effect:
any provision in the Contact that would otherwise made Seller responsible for Inspection, certifications or work relating to structual pest control issues affecting the prpoerty

What this really mean?

**Mike Taylor** · 03-14-2008, 04:43 AM

It means if that as is addendum and the original contract conflict with each other regarding those matters, then the as is contract is the one that wins.

**JJohnson1985** · 03-14-2008, 05:26 AM

Basically, KNOW what you are buying. If it has toxic waste buried in the backyard, it will be your problem once you sign. (An extreme, but it is buyer beware). Make sure to do your due diligence!

**brianlaughlin** · 03-14-2008, 04:18 PM

Do your due diligence, but don't be deterred. That's standard for bank sales.

Regards,

Brian Laughlin

**housemark** · 03-14-2008, 08:37 PM

Originally Posted by Mike Taylor

It means if that as is addendum and the original contract conflict with each other regarding those matters, then the as is contract is the one that wins.

Hi, thanks for all of replies.
As matter of fact, the property is short sale and bank has the final say on the offer since the seller is 3 month at least behind the morgage. So far, the house is in fair condition and we didn't see any visible problem. but no inspection has done! the original offer we made is we will pay for all the inspection and retain all thecontingency rights. "as is " addendum is the "counteroffer signed by the seller to confirm the inspection costs and we still have the rights to ask for seller or bank to fix the major problem or back off our offer and get our deposit back if major roof or termite problem shows up," as explained by our buyer's agent.

what kind of risk are we facing if we sign this as is addendum? is there any other option for us to give seller counteroffer?
what are we supposed to do as a buyer dealing with bank?
our buy's agent reassured us that we are safe and sound. It won't hurt us if we double check from this expert's forum.

Thanks in advance,
mark

**JJohnson1985** · 03-14-2008, 11:43 PM

Now that I think about this question, I thought I heard that "as-is" contracts are unenforcable or even illegal. At least in some circumstances. Am I wrong?

**MrCleanup** · 03-15-2008, 07:26 AM

if it's a bank owned property and it is sold "as is" then I would want to
1: come to terms with the bank on a price because in this world everything's neogotionable and 2:make your deal based opon your report from your inspector.....if all what's needed is cosmentic you can deal with it on a "as is" sale but if you have big stucture issues that your inspector found that you didn't then I would leave this one alone....God know there are a few more short sales out there....remember you are in control.......

**Texas_** · 07-14-2008, 05:02 AM

The term 'as-is' has got to be one of the most confusing and misunderstood bits of language in all of real estate!

There is no clear definition of 'as-is.' It will vary according to every expert you ask.

And often even a careful reading of the contract does not make clear what the seller is or is not responsible for. With all due respect to the poster above who cautioned about 'toxic waste dumps,' that simply is not entirely correct. There are federal laws governing who is responsible for toxic waste, and they trump a real estate contract every time! This can be a very complex issue, and most often the really serious problems that are discovered with a property end up being decided by a court after very expensive legal battles.

Here's the bottom line: Many state and local sales contracts include the language 'buyer accepts the property as-is', or some version thereof, somewhere in the property condition clause. Which is why the inspection clause or addendum is SO IMPORTANT in every contract.

BANK FORECLOSURES are not going to do repairs. That is the primary significance of the 'as-is' for foreclosures. You need to check out the property very carefully BEFORE you submit the contract. And make sure you understand your inspection clause and option period, if any. Once the bank has accepted your offer, they are not going to want to see your list of 'required repairs' in order to renegotiate the purchase price later on. They will not pay for a new furnace or give you a credit for that bad wiring. It's just not going to happen.

Best to have a good inspector who can give you a detailed summary of the property BEFORE you submit your offer.

By the way, banks and foreclosure trustees are NOT required to provide SELLER DISCLOSURES in any state I know of. BUYER BEWARE!!!!

Good luck!