Tuesday, November 3, 2015

What is an As Is Residential Contract for Sale and Purchase ?

My husband and I are looking to purchase a luxury condo in Aventura. We have come across one, with our Aventura Realtor that indicates it is for sale “ As Is”.  I would like your thoughts on this type of sales contract.

Q. What is an “As Is Residential Contract for Sale and Purchase” in the sate of Florida” Contract?

A. As the name indicates, an “As Is" Contract is when a property is sold in the condition in that is is listed for sale. Unlike a Residential Contract for Sale and Purchase, which typically provides for repair provisions.

More specifically:

There are no monetary concessions for:

  • General repair items
  • Wood destroying organisms (termites) repairs
  • Costs associated with closing out expired or open building permits

The seller, however, is responsible for maintaining the property “As Is”. Meaning, for example,
ensuring exterior upkeep (landscaping) is maintained.

Because the seller purchases the property as is, many purchasers do not pay for an inspection of the unit, Of course, The potential buyer is under no obligation to inspect the property. However, I believe this step is very valuable and necessary. It is better you know what you are getting yourself into in the long run. You will naturally want to conduct a physical inspection, and I would also employ a third party to do a lien search. Better safe than sorry.

It is important to reiterate:

An “As Is” contract means you have the right to inspect the property and a right to cancel for any reason.

Also in many cases the reason sellers will want an "As Is" contract doesn't necessarily mean that the seller has problems with the property. Quite the contrary, in many cases, it is because the offer price for sale is lower than what the seller was hoping for and they decided not to invest any more money into the house to get it closed.

Your Aventura Realtor should guide you through this process.

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