Buying and Selling "as is"
April 12, 2007
In California, if Buyers and Sellers are using licensed real estate agents who are members of the California Association of Realtors, all of the standard purchase agreement contracts have a paragraph which states "the property is sold in its PRESENT physical condition as of the date of Acceptance and subject to the Buyer's inspection rights..." The seller is required to disclose any and all information regarding the seller's knowledge of the property, but the seller is no longer contractually required to make repairs.
It becomes important for the buyer to hire a professional inspector and learn from a knowledgeable third party, what the "PRESENT physical condition" truly is. Buyers may be reluctant to spend the money (usually between $350 and $500), but this is the best protection against defects that the seller might not know are there, but will eventually surface and the buyer could have a major expense.
A buyer should look at the credentials of an experienced independent inspector who belongs to one of the professional home inspection organizations. Members of the American Society of Home Inspectors (ASHI) have had to pass rigorous membership requirements. Local ASHI members can be found at www.ashi.com or 1-800-743-ASHI.
As home inspections became more prevalent, a number of franchised companies were developed. I recommend that any buyer who hires an inspector, ask questions concerning the individual's training and background. It is also a good idea to request a sample copy of their report format. These can differ substantially in detail and as a buyer you may want to select a format that provides clear information as to the actual physical condition as it presently exists.
In California, if Buyers and Sellers are using licensed real estate agents who are members of the California Association of Realtors, all of the standard purchase agreement contracts have a paragraph which states "the property is sold in its PRESENT physical condition as of the date of Acceptance and subject to the Buyer's inspection rights..." The seller is required to disclose any and all information regarding the seller's knowledge of the property, but the seller is no longer contractually required to make repairs.
It becomes important for the buyer to hire a professional inspector and learn from a knowledgeable third party, what the "PRESENT physical condition" truly is. Buyers may be reluctant to spend the money (usually between $350 and $500), but this is the best protection against defects that the seller might not know are there, but will eventually surface and the buyer could have a major expense.
A buyer should look at the credentials of an experienced independent inspector who belongs to one of the professional home inspection organizations. Members of the American Society of Home Inspectors (ASHI) have had to pass rigorous membership requirements. Local ASHI members can be found at www.ashi.com or 1-800-743-ASHI.
As home inspections became more prevalent, a number of franchised companies were developed. I recommend that any buyer who hires an inspector, ask questions concerning the individual's training and background. It is also a good idea to request a sample copy of their report format. These can differ substantially in detail and as a buyer you may want to select a format that provides clear information as to the actual physical condition as it presently exists.
posted by shirley harry at 9:31 AM
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