Tips & Trends for the Flagstaff Real Estate Market:
Past Articles [March 2007]
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“As Is” and what that means in a real estate transaction
Occasionally someone acquires real estate in which they have limited knowledge of the property. This usually happens through inheritance or when a house is obtained as the result of a gift. An individual who owns this type of property usually knows very little about any issues relating to the structure. With no first hand knowledge of the property they are not in a position to disclose material defects when they decide to sell.
When this occurs, a property may be offered for sale “As Is”. This means that the seller makes no warranty to the buyer either expressed or implied as to the condition of the premises, the zoning of the premises, or the premises fitness for any particular use or purpose. However “As Is” does not relieve the seller of the legal obligation to disclose all known material latent defects to a buyer.
An individual considering the purchase of a property in “As Is” condition should proceed carefully. Upon negotiating a contract, the buyer should conduct an independent inspection and investigation regarding the premises. Upon completion of the inspections and any other investigations, the buyer can ask the seller to repair those items that may be a health or safety issue.
An “As Is Addendum” to a purchase contract is used by realtors when they are negotiating an “As Is” sale. You can view a sample of the addendum at http://www.marymonday.com/docs/seller_asis.pdf.
A common term used in the real estate business is Caveat Emptor; it is a Latin phrase meaning “Let the Buyer Beware”. Under this concept buyers make purchases at their own risk.
Mary Monday is an Associate at RE/MAX Peak Properties. She can becontacted at
(928) 779-9090 or Mary@MaryMonday.com.
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