“As Is” is a term in real estate that is often misunderstood. Realtors are often asked by sellers to list their properties “As Is”. By doing so, sellers often (incorrectly) believe that specifying that they are selling their property “As Is” 1. takes away their obligations to disclose defects in the premises and 2. takes away a buyer’s right to request repairs.
On the contrary, “As Is” in NO WAY excuses a seller from their disclosure obligations (nor does a seller’s refusal to deliver a completed seller’s property disclosure statement that is provided for in the terms of the purchase contract). Even in an “As Is” transaction, sellers MUST still disclose known facts materially affecting the value of the property that are not readily observable and are not known to the buyer.
Additionally, it is important to remember that regardless of whether or not the purchase contract specifies that the premises will be sold in “As Is” condition, buyers may still request repairs. According to the terms of the Arizona Residential Purchase Contract, buyers have an inspection period in which they may request repairs, or elect to cancel the contract. On the other hand, sellers “may, but are not obligated to engage in negotiations for repairs/improvements to the premises.”
In February 2017, the Arizona Residential Purchase Contract was revised to express that the premises are being sold in its “present physical condition as of the date of contract acceptance.” This change eliminated the need for for parties to additionally specify that the premises will be conveyed “As Is”. However, please keep in mind that the purchase contract also provides that the “seller shall maintain and repair the premises so that at the earlier of possession or COE: (i) the premises, including all personal property included in the sale, will be in substantially the same condition as on the date of contract acceptance”.
