It’s not very common, but from time-to-time a seller will present a buyer with an “As Is” Addendum that becomes a part of the Arizona Association of Realtors' (AAR) real estate purchase contract.
What is a seller’s intent in using an As Is Addendum? It is most commonly used when an investor has acquired a property, never seen or even lived in the property, and then goes to sell the property.
However, it's becoming more commonly used by sellers who want to make certain that they are under no obligation to fix anything related to heating, cooling, mechanical, plumbing, a free-standing range or oven, built-in appliances and electrical systems including swimming pool and/or spa, motors, filter systems, cleaning systems, and heaters. Whew, that’s a long list of items!
So should a buyer throw caution to the wind and proceed with the purchase of an “As Is” property? An As Is Addendum may or may not signal the buyer to proceed. In most cases a buyer would want to proceed with caution and use the inspection period to request all pertinent inspection(s). Upon conclusion of the inspections (during a strict time period outlined in the contract) they may choose to move forward with the “As Is” purchase, or not.
The buyer should keep in mind that they have the right to inspect and during the inspection period they have the right to cancel the offer immediately and receive their full earnest monies back!
What most buyers fail to understand is they have the right to ask for repairs. But it says “As Is”? Yes, a buyer can give the seller an opportunity to correct items disapproved on the inspection report. This is not a time to renegotiate the price, but it may be a time to ask for repairs if there are items the buyer feels would be a deal breaker. The seller may or may not agree to repairs, remember they are under no obligation to make any repairs whatsoever.
Another important point to remember is the As Is Addendum as part of the AAR Contract is NOT a means to hide problems with the home or property. The seller is still under legal obligation to disclose all known material defects.
With any real estate purchase it’s important to as your Realtor® if you have specific questions that haven’t been answered or if you are unclear of any verbiage used in any of the forms or any parts of the contract. As a buyer, you are in the driver’s seat.
Do you have any real estate related questions that one of the members of The Matheson Team can help you with? Feel free to contact them at (602) 694-3200 or fill out the contact form below.
