“As is, where is” Transactions

“As is, where is” is a term often used in real estate transactions. It signifies the condition in which a property is being sold, implying that the property is being sold in its current state, with all its existing faults, defects, and issues.

This term is usually used when the Seller wants to make it clear that they will not be making any repairs or improvements to the property before conveying it.

In an “as is, where is” transaction:

  1. Condition: The property is sold in its current condition, and the buyer is accepting it in that state. This means that the buyer is taking on the responsibility for any repairs or renovations that might be required.
  2. Risk: The risk associated with any hidden or undiscovered defects becomes the buyer’s responsibility. The seller is not obligated to disclose all issues, but the buyer is typically encouraged to conduct thorough inspections and due diligence.
  3. Price Consideration: Properties sold “as is” might be priced lower than similar properties in better condition. Buyers might see this as an opportunity to purchase a property at a potentially reduced price, taking into account the cost of future repairs and improvements.
  4. Inspections: Due diligence becomes even more critical in such transactions. Buyers are strongly advised to perform comprehensive inspections, including home inspections, pest inspections, and any other relevant assessments, to understand the property’s condition fully.
  5. Negotiations: While the property is being sold “as is,” there may still be room for negotiations on the price based on the findings of the inspections. Buyers can factor in the estimated cost of addressing any issues when determining an appropriate offer.

It’s important for both Buyers and Sellers to fully understand the implications of an “as is, where is” transaction. Buyers should be prepared for potential surprises and expenses related to repairs, while sellers should be aware that they might attract a more limited pool of buyers due to the property’s condition.

Brian Madigan LL.B., Broker


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