Understanding the Risks and Rewards of Buying As-Is Properties
Purchasing a property in as-is condition implies that the buyer accepts the property without warranty or guarantee. Anything that may be wrong with the home or the property is not the responsibility of the seller, either before or after the purchase is complete. This transaction type is very typical when purchasing a foreclosure or REO property. In some cases, this will apply to homes or properties offered as ‘handyman specials’ or ‘in need of repair.’ Buyers who purchase an as-is property must take into account that they will be responsible for all repairs and code compliance issues with the property and will not have any legal recourse against the former owners for anything they discover to be wrong with the property or structure after the sale formally closes.
Related Terms: Home inspection, Real estate owned (REO), Foreclosure purchase, Property maintenance, Fixer-upper.
