I'm looking for anyone who has any personal insight on a similar situation to this one. Submitted an offer on a house (investment property) and written in my offer I included that the offer would be taking the house at the offered price AS IS. I do this to make my offers more incising to the seller, and have all intentions of purchasing the house AS IS. I do not intend to ask the seller for any repairs to be made nor am I looking for a credit of money for any repairs that need to be made. I am offering a price on the house AS it IS. Offer got accepted and come to find out upon further inspection that there is major foundation issues. Where do I stand from a legal point now that the offer has been accepted. Thanks for your feedback.
Did you have any contingencies?
You can still back out if you had an inspection or financial contingency and the amount of days are not up
If not, you may be looking at losing your Earnest Money Deposit in best case scenario
No contingencies, this was just a proposal to purchase form. A preliminary document with no contract.
@Robert Sapienza The legal aspect is something for your attorney to figure out. The moral issue is different.
Almost all ( I really want to say all but I won't just because there is always an exception) real estate contracts have either a written or implied AS IS statement. Same thing with deeds. That has no bearing whatsoever on whether you can negotiate repairs after an inspection period. Most state residential forms promulgated by the NAR or that state association of realtors have that boilerplate type of language. Since you are an agent I will assume it is not as cut and dry in NJ as in TX but even if an offer is accepted, the clock doesn't start ticking until earnest money has been deposited with the 3rd party (title company).
To me it doesn't seem like you are any worse off than you started unless you have a signed and executed contract. If the seller says "well you wrote as is so I am not making repairs or lowering the price" you can legally respond with "ok, later"
@Peter Moser thanks for the reply. I am almost positive that is also the case in NJ. I have only been a realtor for 8 months and got my license mostly for personal investment purposes, so I don’t have much real world experience (only a couple deals). I work in a small office and my broker is currently unavailable so I figured I’d throw this question out to the people of BP. Thanks again.
@Robert Sapienza I would talk to an attorney, but based on your previous post, it sounds like you didn't sign a contract yet? In that case, I don't think you would be legally bound to purchase the property. Also, in NJ, there is an attorney review period during which you would be able to get out of the contract.
I see this confusion often, not typically from agents though.
"As Is" simply means the seller is not agreeing, in advance, to performing any repairs typically that may be required to be in a financable condition. An yes, probably 98% of all contracts are as is. It has nothing to do with having an inspection period, which it absolutely should if you don't know exactly what you're doing, or the ability to renegotiate after inspection.