REAL ESTATE BUYER TIPS -"AS IS" DISCLAIMER

An "As Is" clause is a standard part of today's form residential real estate contract in Illinois. However, the buyer must initial this clause separately. This is to make sure the buyer fully agrees to it. 

"As Is" means the seller is selling the real estate in its current condition. He is not obligating himself  to make any repairs or improvements  to  the property. The buyer, in turn, is accepting the property in that condition.  

By agreeing to this clause, the Buyer is acknowledging that seller has not made any representations, warranties, or guarantees to the condition of the property, beyond those which the Seller must disclose under the Illinois Residential Property Disclosure Act. In other words, if there are any latent defects of which the seller is unaware, they become the buyer's problem. 

Despite the "As Is" clause, the Buyer still has the right to have an inspection done by a professional inspector. Indeed, a buyer would be wise to have a professional inspect the property.

 (NOTE: THERE ARE IMPORTANT TIME LIMITS FOR THE BUYER TO HAVE INSPECTIONS DONE.) 

If the home inspector uncovers any defects which makes the property unacceptable to the buyer, then the buyer must notify the Seller within Five (5) business days after the Date of Acceptance of the contract, to declare the contract null and void. 

Again, the buyer must notify the Seller within five days of the date of acceptance if the inspection reveals unacceptable conditions to the buyer. If the buyer does not do so, the contract continues in full force and effect. 

Even under the "As is" Disclaimer clause, the buyer, provided he timely has notified the seller of any unacceptable conditions, still may ask the seller to  make repairs or to give him a credit. Depending on the dollar  cost of the repairs or the credit, the seller may agree. He may also reduce the purchase price. Or he may refuse to do anything, in which case the buyer must decide whether to take the property with the known defects or walk away from the deal. 

Although the Buyer bears the cost of the inspection, I always urge my clients to have a professional inspection done within the time limit. They absolutely need to know what they are buying when it is still possible to either walk away from the deal or negotiate repairs, credits, or the purchase price. 

If a Seller has lived in the property, he is required to disclose all known defects in the property, regardless of the "As Is" disclaimer. This does not include latent defects of which he is unaware. Also if the seller did not occupy the property or hired another person to manage it, he is not required to disclose defects.