Sellers listing their real estate for sale have many different options available. Some list their own properties without the assistance of an agent in a for-sale-by-owner transaction. Others hoping to close quickly might list the property in as-is condition.
An as-is listing may give buyers reason to pause. They may worry about the seller using the as-is listing to hide major defects and avoid legal or financial responsibility. Should buyers worry about undisclosed issues when making offers on as-is property listings?
Disclosures are still legally mandatory
Contrary to what some people assume, an as-is listing does not transfer all of the risk related to the condition of the property to the buyer. Instead, it is a way for the seller to declare that they have no intent to make repairs or improvements to the property, regardless of what happens during negotiations with prospective buyers.
Sellers still have an obligation to accurately and thoroughly disclose what they know about the condition of the property in listing paperwork. If they fail to disclose issues, they may later be responsible for misrepresenting the condition of the property and failing to fulfill their disclosure obligations.
Buyers can theoretically make offers on as-is listings without much increased risk when compared to standard listings. They simply need to be diligent when evaluating the condition of the property and reasonable when deciding what amount to offer.
Working with a real estate attorney when evaluating disclosures and other documents related to a residential real estate transaction can help buyers limit their exposure. They also have someone ready to assist if issues arise in the future. Professional guidance can be a wise investment for those preparing for what could be the largest single transaction of their lives.
