Between as is contract and settlement

7 Replies

I have a contract on my second house!!! Viewed house and had some problems so signed "as is". Viewed entire house and knew issues. Appraisal guy for bank came and wanted foundation and roof inspection. Inspector came and foundation is fine and around one of the chimneys there was small leak due to flashing which I knew about. ALSO, due to a recent storm a branch fell on overhead electric line which a pole that was attached to house and went through part of roof was partially ripped away from house and now you can see through part of roof for underneath house. To get the final go ahead on roof inspection that has to be fixed as well. This happened after I had the house under contract. Only a few hundred dollar fix but should this be out of my pocket or the sellers? I know I have to pay for flashing around chimney but I don't want to pay for electric pole/roof fix. I settle in 6 days, should I just pay for it or is there something I can do/ should I do.
Thanks

Hopefully your as-is contract had a provision for as-is, "to be delivered in same condition as the time of execution of contract". If so, seller definitely needs to fix or give you a credit at closing.

If it happens after you have it under contract you need to fix it or just walk away and lose your EM if there is any.


Joe Gore

as is contract it is not as it was.ask seller to pay or give u there insurance check

Originally posted by @Joe Gore:
If it happens after you have it under contract you need to fix it or just walk away and lose your EM if there is any.

Joe Gore

This is patently incorrect. "As is" means that you are buying the property in the condition it is in at the time of executing the contract. If that condition changes you are not now on the hook and just lose your EM. If the property burned down overnight are you still going to lose your EM were you to walk?...obviously the answer there is No.

So while the seller may not be willing to make the repair since it was sold "as is" and you then do have the repair/walk decision, your EM is refundable as the property condition has materially changed compared to what your offer was based on.

Renegotiate the price. Of, if you have funding in place and nothing can be changed in order to close in 6 days, then ask the seller for a concession/credit. IMO this is a good time to make a deal. Assuming you're both ready to close, that means the seller is seeing the light at the end of the tunnel and looking forward to getting his check.

The correct answer here is that any of the already posted scenario's are "possible". The truthful answer is you CANNOT get an answer to your question based on your post. The reason for that is called "the 4 corners rule" which is a legal anecdote meaning the answer lies on the writing printed between the 4 corners of the pages of your Contract. The Contract will have your answer as to who has responsibility, liability, and what your options are. Without seeing the terms of your Contract the answer is not possible. If you are not using a real estate attorney, I suggest you consult one and get a factual answer to your question. Good Luck

thanks everyone, they ended up paying for the electric and fixing the roof.. they also left the house a mess and got an extra 600 to clean the furniture out of it (which paid for the dumpster and my time). Settled this past Friday on the home. This is my second home, turning first into rental. without this site and listening to ever podcast, I wouldn't be doing what I am. I have a lot to do, will post pictures soon. thanks everyone

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