Q&A: What does "AS IN" Condition Mean?
In Manhattan, most properties are sold "AS IS." What does "AS IS" Condition Mean?
"Seller
makes no representation as to the physical condition or state of repair
of the Unit, the personality, the included interests, or the premises.
Purchaser has inspected or waived inspection of the unit, the
personality, and included interest and shall take the same "as is",
as of the date of this contract, except for reasonable wear and tear.
However, at the time of the closing, the appliances shall be in working
order and required smoke detector(s) shall be installed and operable".
Caveat Emptor (let the buyer beware).
The
basic theory in New York real property law is "caveat emptor," meaning,
"let the buyer beware." This theory is supported by the well-settled
principle that a seller has no duty to speak when the parties deal at
arm's length; the mere silence on the part of a seller without some act
or conduct that amounts to concealment is not actionable. Therefore,
unless a seller takes affirmative action that prevents a buyer from
determining the existence of an adverse condition (i.e., painting over a
wall that is the subject of constant leaks), a buyer has no recourse
against a seller on account of that condition.
Don’t Look to the Listing Broker
In
many cases, the broker will not have enough information about a
particular building or apartment to be in a position to make any
representation as to potential problems that may exist. This is
particularly the case in New York City, where it would be virtually
impossible for brokers to keep abreast of the changing conditions of
buildings, let alone the thousands of apartments in any given
neighborhood. Furthermore, much of the information circulated by brokers
is second-hand or anecdotal, and should not be considered absolutely
reliable for such a large investment.
Bottom line: "Due Diligence"
How is a buyer protected? There is a due diligence window between Accepted Offer and Contract signing. Do
not sign a contract until you and your attorney have done their homework. Inspect the premises, the building financials, read board meeting
minutes, talk to neighbors, the condition should be factored into the
offer or request that repairs be performed prior to closing. Avoid
disputes about inclusions and exclusions of Personal Property.
Appliances and fixtures must be in "working condition"
"AS IS" Condition of the Property.
The seller must deliver the premises vacant and broom clean at closing.
I always give suggestions to my friend for taking home inspection service before buying any new home. Recently one of my friend took
ReplyDeleteRolling hills Estates property inspection for his new home.
Well, there are many questions in ones mind before buying a property or house, these types of problems are resolved by many home inspection service provider like Manhattan Beach property inspection at Manhattan Beach. They helps in all ways and helps for best deal.
ReplyDeleteThat's a great explanation Mitchell. It's indeed a little confusing to read "As Is" if you're not an attorney.
ReplyDeleteThanks
ReplyDelete