Buying "as is".. Same purchase agreement contract?

Question

My first offer was just accepted ! I am buying the property "as is" . Would the same standard purchase / sales agreement apply - would there just be a statement in there somewhere that says that the buyer is buying as is?

And on the same note, what can I expect / what are the differences in closing when I'm buying as is? I am trying to get a purchase agreement together and get down to the title company today to get this going...

Bill Gulley · Answer

An assignment agreement is, in some cases a good idea if there are different aspects where certain contract covenants are not applicable or where performance by the wholesaler has been performed and assumed by assignment. It may or may not offer limited liability as provided for in the agreement.

An agreement isn't necessary as much as a settlement statement showing the assignment fee that must be accounted for as under tax code and real estate settlement procedures, the settlement agent will generally take care of this as an expense paid out of closing if not paid at settlement.

Any contract is assigned by endorsement, much like you endorse a check over to another payee. The endorsement is needed on the contract assigned setting over the interests of the assignor and signed by the assignor.

As Wayne mentioned, a double closing will require another contract, identical terms used except that the price is probably higher to the end buyer to show your profit. :)

Wayne Brooks · Answer

If you're assigning, you use an assignment agreement of the Executed purchase agreement.  If double closing use an Identical contract, perhaps less any buyer contingencies.

Summer Segeleon · Answer

THANKS!

Bill Gulley · Answer

Buyer agrees to purchase the subject property "as is" in its present condition without any warranty or representation, expressed or implied. Is what I have used. :)