Use of “As Is” in a Real Estate Contract



Why would an agent insist that one insert a clause that says “Buyer acknowledges the home is being bought in as-is condition”.

We know the condition…risks etc… have no clauses that include any warranties.


Here is a clause that you might see:

“The buyer agrees that he shall purchase the property as it exists at the present time without representation, warranty or condition with respect to the fitness condition, value, zoning, or lawful use of the property. The seller makes no representation of warranty with respect to any defects, the state of repair of the working order of any aspect thereof, location of walls or fences. The seller shall have no responsibility whatsoever to remedy any defect, comply with any work orders or deficiency or other similar notice, or complete any unfinished work. The buyer acknowledges that he is submitting this agreement, relied entirely upon his own inspections and investigations with respect to the property, including, it’s quality, quantity, state of repair, zoning and lawful use as well as its value and does not rely upon any
representation, warranty or statement made by the Seller or his representative or any other party involved in this proposed transaction.”

All properties are sold “as is”, you don’t have to add anything to change it. It’s “caveat emptor”.  If you want a warranty, then you have to add it in. So, clearly, don’t let the buyer add it in. There’s really no point saying that you didn’t add in a warranty clause. That be evident from the Agreement.

Brian Madigan LL.B., Broker

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