"As-Is" has become a big buzz word in the seller marketplace recently. Sellers tend to think this will eliminate the ability of a buyer to request repairs on their property, which simply is not true.

This is an article by  Scott M. Drucker, Esq., a licensed Arizona attorney, General Counsel for the Arizona REALTORS® serving as the primary legal advisor to the association. This is a conversation we have often with sellers, and couldn't be put any more clearly than this article...

For some reason, it is becoming increasingly common for sellers to expressly state in Section 8a of the Residential Resale Real Estate Purchase Contract (Residential Purchase Contract) that the Premises will be conveyed in “as-is” condition.

In February 2017, the Residential Purchase Contract revised Section 5a to express that the Premises are being sold in its “present physical condition as of the date of contract acceptance.” In other words, what you see is what you get. This change eliminated the need for the Arizona REALTORS® As-Is Addendum as well as the need for parties to specify in Section 8a that the Premises will be conveyed “as-is.”

While parties may include additional terms in Section 8a, writing in that the Premises will be sold “as-is” accomplishes nothing.

It should also be remembered that regardless of whether Section 8a of the Residential Purchase Contract specifies that the Premises will be sold in “as-is” condition, buyers may still request repairs. As stated in Section 5a, buyers and sellers “may, but are not obligated to, engage in negotiations for repairs/improvements to the Premises.” The Arizona REALTORS® Buyer’s Inspection Notice and Seller’s Response form remains available for this purpose.

Additionally, “as-is” in no way excuses a seller’s disclosure obligations. 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. Hill v. Jones, 151 Ariz. 81, 725 P.2d 1115 (App. 1986).

While drafting contracts, it is best to avoid redundant and thus superfluous terms. When parties attempt to restate the same proposition in a number of different ways, it becomes increasingly likely that the provisions will actually contradict one another. For this reason, the best course of action when conveying a property “as-is,” is to leave the Residential Purchase Contract “as-is.”

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