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Is it smart to buy a home “as is”?

What do you think of when you see a home is being sold “as-is”?

as isNo warranties?

No seller disclosures?

No inspections allowed?

No recourse if the home isn’t structurally sound as you thought it was when you submitted an offer?

No options if there is something ugly on the title?

Just because a home is listed “as-is” does not mean the seller doesn’t have to disclose defects in the home or the title on the home. It also means the buyer still has options and isn’t stuck with something that isn’t what they thought they were purchasing.

The Real Estate Purchase Contract details it this way for both the buyer AND the seller:

Section 10.2 and 10.3 – “As-IS” Condition of the Property

In the standard Real Estate Purchase Agreement, the seller has no legal obligation to provide warranties on the condition of the property. Additionally, the seller is not legally bound to fix or repair anything thing on the property. If the seller agrees to, they could have repairs made, if requested in writing. Again, it is not required that the seller has to make these repairs.

It is also up to the buyer to make the inspections or tests on the property within the due diligence period outlined on the REPC.

Just because a seller may list the home “as-is”, does not give the seller a wild card to forgo any of the obligations of a seller’s disclosures, radon or lead-base paint disclosures. “As-is” ONLY means the seller is not obligated to fix or repair requests from the buyer. That is all.

Section 8.1 – Due Diligence Condition

The REPC spells out that the buyer CAN have inspections of the property, including any tests or evaluations – by the due diligence deadline agreed to in the purchase agreement. Once signed, the buyer must either cancel the inspection requested or resolve any objections.


The buyer has every right to cancel the contract with written notice to the seller, if the buyer is not satisfied with the property. Earnest money will then be returned to the buyer.


The buyer may request to have the seller resolve some issues with the condition of the property. The seller may opt not to resolve any issues, but if the buyer and seller do come to an agreement, it must be done in writing BEFORE the due diligence deadline agreed to in the purchase agreement.

If this is done at the last minute and is not resolved by the due diligence deadline, the due diligence may be deemed “waived” by the buyer and the buyer would be held to the terms of the contract and the buyer accepts the condition of the property. So, if there are any resolutions the buyer want to have done, it is best to come forward quickly.

Section 6.2 – Title Insurance

In the Real Estate Purchase Contract, the Section of 6.2 Title Insurance requires the Buyers to purchase an ALTA Homeowners Policy.  A home’s title shows the line of ownership and an Alta Homeowner’s Policy provides the broadest of forms of coverage of any clouds on the title. This policy protects against any previous owner’s mechanic liens, various zoning issues, subdivision issues, violations of previous building permits and encroachments. This is only for previous owners, not what you bring to your home.

There are many reasons a seller could elect to sell their home “as is”:

  • The seller really doesn’t have the money or the home equity to make any of the repairs and prices the home accordingly so the buyer will make the repairs.
  • The home simply is a “fixer upper”.
  • The seller may also not want to make any repairs contingent on the sale of the property.

Any of these reasons are valid and up to the choice of the seller; HOWEVER, again, it does not negate any buyer from having disclosures and inspections.

It’s tricky purchasing a home “as is”, but with any home purchase, it may be just the home for you. But you do need professionals to help you every step of the way! Our team of local experts is ready to guide you through the home-buying process. We are committed to fast, professional and courteous service to help you understand and feel at ease throughout the home buying process. Our trained and licensed agents specialize in the Northern Utah area real estate market and are prepared to find the right home and get the best price.

Call us today & be sure to follow us on Facebook!!

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