What does it mean when a property is being sold “AS IS” under the contract?

The words “AS IS” act as a disclaimer of any warranties by the seller regarding the condition of the property. As such, if a defect in the property is discovered after the closing, the AS-IS language is designed to protect the seller from any claims by the buyer.

Selling property AS IS does not alleviate a residential seller's obligations to make true and complete disclosures to a buyer and to disclose material defects related to the property.

Most sale agreements require the property to be conveyed in the same condition it is at the time of the signing of the sale agreement. In addition, other customary terms of an agreement of sale still require that the seller’s personal property be removed and the premises be delivered to the buyer in a “broom clean” condition.

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