Inspection Conditions for “As Is” Properties

Question:

If a house is being sold “as is” can you personally pay for a building inspector as a condition if you put a bid on it?

Answer:

All real estate is sold “as is”. The only exception would be “new builds” with a Tarion Warranty.

The question, of course, is “what is the condition of the house”. That’s why an inspection is so important. A Buyer should include a Condition, a Warranty, or both in an Offer.

There’s no free walk away, unless the Inspection Condition is framed as an Option to Purchase. Refusing to proceed with the deal, either wanting an abatement in price or a complete “walk away” will be determined ultimately by a Judge, assessing whether a reasonable Buyer would have done so, based upon the information at hand.

Many Listing agents will add “as is” but, that really adds nothing, because it’s already being sold “as is”. The Buyer truly needs to know what they are buying, and their best interests are served with an inspection.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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