“Where is-As is” is a real estate term whereby the subject property is being sold in its present condition or current state. A purchaser is taking a property with the understanding that there will be no “moving, cutting, shifting, replacing, redoing, changing, repairing, relocating, or refacing” anything related to the property. However, it is a mistake for a purchaser to think that since they are buying a property in its current state, that they should forgo a property inspection or waive receipt of a Seller’s Property Disclosure.
A property inspection may reveal property conditions unknown by a seller, or worse, known but undisclosed by the seller. Unless a purchaser is an experienced builder or contractor, it’s important to always have a property inspection. Defects discovered through a property inspection may help with price negotiations, regardless of a Seller’s intention to sell “as is”.
In Michigan residential sales, sellers must always provide the purchaser with a Seller’s Disclosure. I strongly encourage commercial real estate purchasers to receive the same. Depending on how a seller completes the disclosure, if a purchaser discovers defects that are inconsistent with a seller’s earlier representations, there could be grounds for seller liability for misrepresentation.