Did you know?Real Estate LawDid you know? – What is the meaning of “as is” in a real estate contract?

If you have ever purchased or sold real estate in California you have likely reviewed, signed, and read a substantial amount of documents. California Law imposes on the parties certain disclosure requirements. In an attempt to protect real property buyers the California legislature have instituted multiple laws requiring certain disclosures that must be made by the seller regarding defects, conditions, dangers, hazards, permits, etc. 

We all grew up thinking you can simply place a “as is” in a contract and absolve parties from disclosure. As you guessed, nothing is that simple. 

When a contract includes a “as is” clause in a purchase and sale agreement does not automatically protect the seller from the common law duty to disclose defects or the requirements of California Civil Code §§1102

“As is” language serves to give notice of patent or obvious defects and means that the buyer accepts the property in the condition in which it is reasonably observable. The seller can take an extra step to require the buyer to conduct their own inspections. 

Keep in mind that the benefits of California Civil Code §§1102 et seq. by the placement of “as is” in the real estate contract.

Generally the seller remains liable for any failure, whether negligent or intentional, to reveal known concealed defects not apparent from an inspection of the property. Keep in mind that almost no language protects the seller from fraud.

Now you know….if you would like more information regarding real estate contracts or have a legal issue with a real estate contract, please contact us.