A lot of times as an Realtor, I get the question, “What does it mean to buy a home ‘as-is?'” This is in regards to the TREC One to Four Family Residential Contract. A prospective buyer has the option to check paragraph 7D(1) or 7D(2). Paragraph 7D(1) says “Buyer accepts the Property in its present condition.” This checkmark is what is “usually/generally” checked when an agent is presenting an offer to a seller on behalf of a prospective buyer.
The question comes from both sides, either the buying side or the selling side. The buyer wants to know, “Why am I checking this box if I am going to uncover repairs in an inspection that I may not be okay with?” and the seller wants to know, “Why are they asking for repairs if they checked that they accepted the home in ‘as-is’ condition?”
Great questions from both sides. And, in all actuality, the answers vary from their agents. But, the answers should not vary. If you keep reading a little below the actual paragraph 7 in the “Notice to Buyer and Seller,” it says that “Buyer’s agreement to accept the Property in its present condition under Paragraph 7D(1) or (2) does not preclude Buyer from inspecting the Property under Paragraph 7A, from negotiating repairs or treatments in a subsequent amendment, or from terminating this contract during the Option Period, if any.”
So, folks, when presented with that question from either side….what should you say? All you have to do is read and repeat the verbiage in our Texas Trec 20-10 in the “Notice to Buyer and Seller” of paragraph 7.
It actually amazes me that if I ever have a question come up in a transaction, all I have to do is refer back to the TREC One to Four Family Residential Contract. It pretty much sums up everything that any party would need to know. So simple, right? I know, that’s what I thought too.