As Is Clause In Purchase Agreement

December 3, 2020 in Uncategorized by

Both sellers and buyers should benefit from the “as is” clause in sales contracts. Too often, it is not on the spot, either because of ignorant buyers or unscrupulous sellers. Kamyar “Kami” Zargari, as a real estate agent for Triumph Property Management, works in your interest when he guides you through this process, as in all real estate processes. It is only through this experience that these unwanted complications can be prevented. An “as is” clause protects a seller from the obligation to disclose material defects if: The benefits of Code 1102 and following are not only offset by the buyer`s acceptance of the “how is” language in the sales contract, and the seller remains liable for the failure to disclose, negligently or intentionally, known, non-visible defects of a property control. Sellers are required to sign the property disclosure form by the seller at least ten days before the property is passed on to the buyer. The purpose of the “as is” agreement is to compensate the seller for repair costs – which is non-negotiable. However, even if it exists, the seller must represent the property “properly” for the “as is” clause to mean anything. This is a common question, not least because buyers are unsure of the rights they are granted if the sale of real estate gets upset.

To simplify, an “as is” clause compensates the seller for liability for existing property defects. This means that the buyer accepts the property in its current state – they accept the property “as it is”. However, an “as-is” clause is not some kind of insurance policy for sellers, as they too have obligations to meet. A buyer or seller who is faced with the trial of the effect and applicability of an AS IS clause should contact the experienced real estate lawyer. While the “how is” condition may seem a little unfair to the buyer, it actually corresponds to the traditional common law notion of “caveat emptor,” which literally means “to pay attention to the buyer.” Therefore, it is entirely appropriate to include a condition “as intended” in an agreement to sell and acquire real estate, provided that it is agreed between the parties to include it. Since the parties did not specify the mechanisms of the sale procedure, the Tribunal structured the sale of the Chinese business and the acquisition of Norwest`s shares under interdependent conditions that should be carried out simultaneously, so that non-compliance with one would justify non-compliance with the other. 1 NPC update – “as is where is” clause, Number 10/01, January 18, 2010. 2 Goode, R. Commercial Law (Penguin Books) (3rd Ed.) at S.183 3 Per Warren Khoo J in Huang Ching Hwee v Kay Pah and another [1992] SGCA 79 at [15]. 4 Halsbury`s Laws of Singapore Flight 14(2) (LexisNexis, 2009) at [170.1221]. 5 Supra 4 to [170.1224]. 6 Per Karthigesu JA in Foo Ah Kim v Koo Chen Lim and another [1995] SGCA 66 at paragraph 17 7.

paragraph 14. 8 Halsbury`s Laws of England flight 42 (4th Ed) at paragraph 62. Sellers will often include an “as is” clause in real estate purchase contracts to avoid future liabilities for misrepresentations regarding the state of the sale of the property.