liability when selling 'as is' - Posted by vladimir_Chicago

Posted by JPiper on October 31, 2000 at 09:06:07:

I doubt that there are any states where known “material defects” would not need to be disclosed. What state did you have in mind?


liability when selling ‘as is’ - Posted by vladimir_Chicago

Posted by vladimir_Chicago on October 31, 2000 at 08:27:37:

Is anyone aware of any liabilities a seller may face when selling their property ‘as is’? Is there a way I can sell ‘as is’ in a city/town which requires inspections of all homes prior to sale?

I guess I am not too clear on the legal consequences of buying and/or selling homes ‘as is’. And if it is something that anyone CAN do, then inspections would not be enforceable, would they?

Thanks again.

Re: liability when selling ‘as is’ - Posted by Shenesa

Posted by Shenesa on October 31, 2000 at 10:58:28:

This is an excellent question. Especially since I am selling a house in “AS IS” condition. I spoke with a realator who basically told me that if I had a buyer to get an FHA loan or conventional,the inspector will require me to do the work. Mind you, the house just needs cosmetic work done to it such as painting plastering and some linolium put down in one area.

I find this strange due to the fact that when I purchased my home, the conventional way, it needed cosmetic work done to it and the lender/inspector had no problem with it.

How picky can they be? I probably would depend on what mood there in:-)


Re: liability when selling ‘as is’ - Posted by JPiper

Posted by JPiper on October 31, 2000 at 09:04:07:

I generally sell houses in their “present, as is condition”. However, this does not relieve me from the responsibility to disclose material defects. In other words, if the furnace does not work then I disclose that it doesn’t work, but I’m selling the property without repair to the furnace.

Somehow though I think you’re trying to ask a different question. Perhaps your city has a city inspection when the property transfers. It appears that you don’t want to make repairs that the city may require. I would guess that if the repairs are not made, then the property can’t transfer…so someone needs to make the repairs. If my speculation is the case, then you need to cover this type of issue in your purchase contract. If you don’t want to do repairs of any sort that may arise out of an inspection, then simply put that in your contract. However, understand that “someone” may need to make the repairs…otherwise, the transfer won’t take place.

A different situation…I can sell “as is” to an FHA buyer. BUT, if the appraiser comes up with some “requirements”, they’ll have to be addressed if I hope to sell to a buyer obtaining an FHA loan.


Re: liability when selling ‘as is’ - Posted by Marty Weisberg

Posted by Marty Weisberg on October 31, 2000 at 08:43:50:


“As is” means different things in different states. In some states it means that you are selling the house with NO need to disclose any known defects and the Buyer gets it just as it is.

In other states however the Seller MUST disclose known defects. I don’t know what the law is in Illinois.


Re: liability when selling ‘as is’ - Posted by dewCO

Posted by dewCO on October 31, 2000 at 22:49:12:

Actually FHA appraisers have been forced by the US govt. to become much more “picky” about such things as making sure the furnace and hot water heater work, NO peeling paint, if flooring is so bad as to be not functional then they can require that to be replaced too, and stuff like no previous water stains to indicate prior flooding (without adequate inspection and assurance that it won’t likely happen again). Too many buyers have gotten ripped off by bad appraisals and inspections. Usually on conventinal loans, they don’t make any requirements or conditins. Although, I just had a conventional loan with a local bond program and the underwriter, NOT the appraiser, called for the peeling paint to be repaired (it was a 97% LTV and underwriters can make any call they want to).

Re: liability when selling ‘as is’ - Posted by Rob FL

Posted by Rob FL on October 31, 2000 at 10:27:14:

As is is normally defined by the contract itself.

This is what I did… - Posted by Ben (NJ)

Posted by Ben (NJ) on October 31, 2000 at 10:14:47:

I took a property through foreclosure, sold it immediately via quit-claim deed and the buyer (very motivated) agreed to waive any inspections. That is about as “as-is” as one can get. The town inspector only wanted to check that the smoke alarm worked and that was the end of it.