Is it normal for turnkey property contract to say "Buy as is"?

[Richard Cheung]

Hello,

I'm very close to buying my first turnkey property and am reviewing the contract. Is it normal to purchase the home (rehab has not started) with a clause that says "The property is being sold AS IS with NO WARRANTIES". The turnkey operator seems to have good reputation in BP/turnkey-reviews.com; I'm just surprised there is no item that mentions anything about rehab work, nor warranty on the work itself, even though they indicate they have a 1 year warranty on their rehab work.

Should I have two inspections? One before purchasing (and putting that passing the inspection is condition for the sale), and another after the rehab work is completed?

Thanks, R.

[Chris T.]

Originally posted by @Richard Cheung:

Hello,

I'm very close to buying my first turnkey property and am reviewing the contract. Is it normal to purchase the home (rehab has not started) with a clause that says "The property is being sold AS IS with NO WARRANTIES". The turnkey operator seems to have good reputation in BP/turnkey-reviews.com; I'm just surprised there is no item that mentions anything about rehab work, nor warranty on the work itself, even though they indicate they have a 1 year warranty on their rehab work.

Should I have two inspections? One before purchasing (and putting that passing the inspection is condition for the sale), and another after the rehab work is completed?

Thanks, R.

 You're signing a legal document, which specifically states As-is, and NO warranties. Despite what they tell you otherwise, the legal contract stands in the event of a dispute.

Whatever agreement you have needs to be in writing, in addendum to the contract. 

You have to get a good and experienced inspector to protect yourself, but keep in mind this TK company do not have to do anything based on that contract. And yes, it's a red flag.