“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, its 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, and 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.