Do you know what it means to sell your home “AS IS”? Chances are if you are buying or selling a home in Broward County the terms will be drafted on the “AS IS” Residential Contract for Sale and Purchase. When you sell a home “AS IS” you as the seller
are not contractually required to make any repairs to the property. It is always recommended you make repairs to your home before you put it on the market, especially if you are looking to obtain top dollar for your home.
Selling a home “AS IS” is selling a home in its current state. The “AS IS” does not relieve the seller from legal obligations for a seller’s truthful disclosure of material defects to the property.
During a sale on the “AS IS” sale contract, the buyer will most likely conduct a buyer inspection. The Florida Far Bar AS IS contract Section 12 titled, “Property Inspection; Right to Cancel” clause gives the home buyer a set number of days to have the
property inspected. The number of days varies from 7-15, with 10 days being the most commonly used. Let me point out, the “Right to Cancel” during the inspection period outlined in Section 12, the buyer can cancel the contract at their discretion. The
AS IS contract does not obligate the buyer to purchase until the inspection period is completed.
The best explanation for the “AS IS” contract is, the seller doesn’t need to make repair yet the buyer doesn’t have to buy the property. Is this practical? Not really. Generally what ends up happening during the inspection period if an issue is uncovered
by the home inspector the buyer will request the seller fix a selected item or provide a closing cost credit to the buyer so they can address the issue after the closing.
Let’s use an example; a buyer views a property and likes the layout, location, and he makes an offer on the property using the “AS IS”contract and it’s accepted. During the inspection it is uncovered that the roof is leaking. The buyer still wants the
home however, he would have thought differently if he knew there was a roof leak. The seller was unware of the leak and did not disclose the defect. The buyer’s agent sends a written request for a roof repair and the sellers agree. The seller was not
obligated to fix the roof, however they want to sell their property and if the buyer canceled they would have been obligated to disclose the roof leak to future interested buyers.
*This is a summary of the “AS IS” clause. If you are buying or selling a home there may be other elements in your transaction that is not covered in this article. Consult a real estate professional when buying or selling a home.
If you have any questions about buying or selling your home call the Amy Kilcoyne Real Estate Team at (954) 439-0996 or email Amy@WelcomeHomeSoFL.com
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