Why you Want an As-Is Contract
Our main goal at Magical Moves is to help people moving to Orlando, Florida, feel confident they’re making the right choice. Most of our customers are from out of state, so it’s absolutely imperative that we look out for the Buyer’s best interest. In order to have their best interest at heart, we need a rock solid contract that protects them.
As-Is Contract Vs. Conventional Contract
Whenever I draft a contract for a Buyer, printed at the top of the contract are the words:
“As-Is Residential Contract for Sale and Purchase”
Inevitably, I know that the “As-Is” language makes my buyers nervous. I know I’ll need to discuss with my buyer’s why this contract is an advantage to them. My goal is to help you understand that this contract provides the Buyer more rights than any other contract! That’s right, the scary “As-Is” term has been a lifesaver to our buyers many times over the years. Here’s why:
As-Is Contracts provide more leverage to buyers. A great example of this is the “Inspection Period” of a contract. In the As-Is contract, the inspection period allows a Buyer to cancel for whatever reason they see fit. The catch is, we must notify the Seller within the agreed-to time limit stated in the Inspection period.
The language in the As-Is Contract is very vague – buyers can cancel for whatever reason they see fit. Don’t like the driveway? You can cancel within the inspection period. Don’t like that a single shingle is missing from the roof? You can cancel within the inspection period. As long as you cancel within the time limit, your earnest money deposit is yours. Compared with a “conventional contract,” buyers have more cancellation rights with As-Is.
Conventional contracts bind Buyers and Sellers together when problems arise from the condition of the home. In the example stated above, If a buyer didn’t like the shingle missing from the roof, the seller can agree to fix the shingle. Both Buyer and Seller have “fixed” the issue and will continue the contract.
Cons of As-Is
The Cons of an As-Is contract are directly related to the pros: Because the seller isn’t required to fix/remedy issues, it’s important to know that going into the deal. Buyers have the right to ask for repairs and/or seller concessions, but sellers have the right to refuse. Most sellers really want to sell their home, so small, functional repairs are completely reasonable to ask for. Most issues arise when buyers ask for cosmetic repairs.
The As-Is Contract is a great way to protect the interests of a buyer looking to purchase a home. If surprises with the home home pop up during the home inspection, you have the right to irrevocably cancel during the inspection period, no qualms about it! It’s important to note that when you place an As-Is offer, the seller is under no right to fix items that concern the buyer.
This is why hiring a Realtor who works with buyers regularly is such an important factor when making a Magical Move!
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