My Affordable Real Estate

What does a house that is sold “As Is” actually mean? Here is some discussion on that very topic.

Purchased a building that was sold in “As is” condition. Realtor seemed like a great guy…very nice, returned my phone calls promptly, etc. On the contract it has a listing of various things that were supposed to go with the property. (Windows, doors, central heating, etc.) What kind of idiot would take that kind of stuff out of a building/home? Well, I guess the idiots that were in my building…

The day before the closing the realtor asked me if I wanted to do a walk though. This was my big mistake here. I asked him, is the building still in the same shape that it was in when it was sold? And he said yes, we’ve been very careful of who went in, etc. So I said okay, good deal.

After the closing they give me the keys and I get to the building and walk in. The heat is not on, in fact the gas has been shut off! Worse then that, the central furance has been disabled since someone took major parts off of it! Keep in mind this is Ohio, and it gets cold during the winter…fortunately the pipes didn’t freeze…next I find one of the doors missing in the kitchen…and then the big one, the septic system is missing the aeration pump!

I call the realtor up and explain these three things to him, he says he’s very sorry, and will check into it. Waited about a week or two and heard nothing. Call last week and leave a message. No reply. Call today and try to get ahold of him, after I say who’s calling, the secretary hung up on me!

Now, I was pretty much prepared (and still am) to pay for the missing stuff myself. But I’m a little upset that I’m getting brushed off in such a rude manner…would be nice if they could politely tell me, no sorry, we can’t do anything…I wasn’t thinking court action before, but now I am…

So, if a property is sold as is, and if you later find out after the closing something is missing from the property, do you have any ground to stand on in court?

I don’t believe that “as is” covers the theft of fixtures. The agent told you he kept track of who went in and he should tell you who went in. You might want to make a call to the authority the controls real estate licences. Not the realtor organization, that is a waste of time.

I agree. “As-Is” does not cover theft. The property should have been left to you in the same condition that you originally saw it. You definitely should have done a walk through and I am surprised that your agent did not push for that. Contact the real estate division for Ohio and see what your best course of action is.

Thanks guys, appreciate the replies! I think why the realtor didn’t push for the walk through and said everything was okay was to get the contract to go through…was very dumb indeed of me not to insist on inspection…

I guess the biggest question is if I still have any recourse since the closing is now past…good idea to try the real estate licensing division!

Caveat emptor is how our real estate system in the US works, it is Latin for “let the buyer beware.” An “As Is” clause in your signed contract places all the risk on the buyer. The condition of the property is determined by the quality of the property at the time it is purchased. Providing you with the opportunity to inspect the property prior to closing puts the seller in a good position. The fact that you declined to inspect weakens your position considerably. Even if the seller had actual knowledge of structural damage, missing fixtures, defective mechanical systems and the like the “As Is” clause is enforceable. If this is an investment property your chances are diminished even further. Courts generally have less empathy if it is not your residence. Any chance of recourse is a long shot at best.

This is a good lesson for everyone that is buying. Always,always inspect the property prior to closing the deal. If you don’t like something don’t close, once you do you bought yourself a lawsuit. Your position is weakened by acquiescing to a condition during closing. Depending on whether there are limiting clauses in the contract your suit may be a slim to none case.

Source: realestateforum.com

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