Fill in Date [Here]
As if to underscore the point, commercial real estate guys like to say, “As Is . . . Where Is.”
I have my own suggested tweak: “Sold ‘As Is’ . . . As Of.”
As in, “As of the date that the Buyer and Seller signed the contract.”
Adding “As Of” would go a long way towards resolving the lingering confusion associated with the residential “As Is” Addendum.
Source of Confusion
Now, Sellers who have negotiated for an “As Is” Addendum often think that they have no, ongoing responsibility for problems that come to light prior to closing.
Wrong.
While an “As Is” Seller doesn’t have to fix anything, if something material breaks or is damaged in the home prior to closing, the Buyer is going to expect an adjustment in the purchase price.
Or, not close.
Material Change in Condition
That doesn’t mean the Buyer can squawk over a loose door knob (presuming they can show it wasn’t loose before).
But, if the home’s roof is subsequently damaged in a storm, the basement floods, etc., an “As Is” Addendum isn’t going to preclude the Buyer from raising the issue — and presumably, renegotiating the price.
And if the Seller knows about an issue and declines to tell the Buyer, at least in Minnesota, their Realtor is obliged to.
P.S.: A truly major problem should be covered by the Seller’s homeowner’s insurance, which the Seller needs to have in place through closing.
