Here’s a list of common questions real estate agents ask their broker about the “As-Is” Addendum, along with explanations to help clarify each one:

📝 Top Questions About the “As-Is” Addendum

1. What does the “As-Is” Addendum actually mean?

  • Explanation: It means the seller is offering the property in its current condition and does not intend to make repairs. However, it does not remove the buyer’s right to inspect or cancel based on inspection results.

2. Can the buyer still do inspections if the property is sold As-Is?

  • Yes. The buyer retains the contractual right to conduct inspections and may cancel the deal during the investigation period if dissatisfied, even if the seller won’t repair anything.

3. Can the buyer still request repairs or credits?

  • Technically yes, but the seller is not obligated to respond or agree. In practice, some buyers still negotiate repairs or credits—even with an As-Is addendum—especially if major defects are discovered.

4. Does “As-Is” protect the seller from disclosing known issues?

  • No. The seller must still comply with all disclosure requirements, including the Transfer Disclosure Statement (TDS), Natural Hazard Disclosure (NHD), and any known material facts.

5. Is the “As-Is” Addendum binding without signatures from both parties?

  • No. Like any addendum, it must be signed and agreed to by both buyer and seller to be enforceable.

6. Should I use the As-Is Addendum on every listing?

  • Brokers often advise only using it when necessary, such as with REOs, probate sales, or distressed properties. Overuse can turn off buyers.

7. Can we use “As-Is” to discourage repair requests?

  • It can help set buyer expectations, but it’s not a guarantee. Agents should set clear communication and manage buyer/seller expectations from the start.

8. Does “As-Is” waive the buyer’s right to cancel?

  • No. The buyer can still cancel during the inspection or contingency period. The addendum does not override that contractual right.

9. Do lenders care if a property is sold As-Is?

  • Sometimes. If the property is in poor condition (e.g. major health/safety issues), the appraiser or lender may require repairs before approving the loan.

10. Is the As-Is Addendum required for probate or trustee sales?

  • Not always, but it’s commonly used. Probate and trust sales typically include As-Is language in their specialized addenda, so check the applicable forms.

11. Can the As-Is Addendum be used with counteroffers?

  • Yes. It can be included with a counteroffer to shift liability expectations or if the seller wants to clarify they will not perform any repairs.

12. Is the As-Is Addendum used in conjunction with the RPA (Residential Purchase Agreement)?

  • Yes. It’s an addendum to the RPA and must be referenced and attached to be enforceable.

13. How does the As-Is Addendum affect a seller’s liability after close of escrow?

  • It doesn’t change the seller’s obligation to disclose known defects. If the seller conceals material issues, they may still be liable—even if sold As-Is.

 

Disclaimer:
The questions and answers provided are for general guidance only and may not cover all details or apply to every situation. If anything is unclear or you need further clarification, please visit car.org for official resources and the most up-to-date information from the California Association of REALTORS®.

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