There’s an addendum that frequently makes it into the purchase agreement in many transactions—the “As Is” addendum. I’m often asked by buyers what this actually represents.
The truth is, an “As Is” addendum means virtually nothing. It’s basically a warning from sellers that they aren’t going to be receptive to repairs or credits during escrow. Or, as an attorney during my company’s recent risk management seminar put it: An As Is addendum is when “sellers are putting the flag up and keeping their fingers crossed” that the buyer won’t try to negotiate anything.
Most buyers include an inspection contingency in their contracts, meaning they have a certain period of time to have professional inspectors evaluate the property. Even though a buyer may have been presented with and signed an As Is addendum, that doesn’t mean the buyer waives his or her right to either back out of the sale, or request repairs/credits. Whether the latter happens will be more a product of the inspection results, and how reasonable the sellers really are.