Own Luxury Homes®

As-Is Contracts: What Sellers Still Have to Disclose

As-is = seller won’t repair; NOT = seller has no disclosure obligations. Known material defects must be disclosed: structural, water intrusion, unpermitted work, environmental hazards, HOA delinquency. Lead paint: federal law, pre-1978, always required. Death in home: varies by state (CA 3yr; AZ not required). Buyer retains inspection right + cancel right within inspection period. Inspection contingency = only protection in as-is sale; never waive it. Own Luxury Homes® 12-Point Agent Integrity Audit™ — as-is inspection never waived.

As-Is Contracts: What the Seller Still Has to Disclose and What the Buyer Still Has the Right to Know

Condition

As-is means the buyer accepts condition — it does NOT release the seller from disclosing known defects

Inspection

Buyers in as-is contracts still have the right to inspect; they just cannot demand repairs

Material

A material defect that was known and not disclosed creates seller liability regardless of as-is language

Death

Death in the home: disclosure requirements vary by state — many require disclosure for a defined period

The phrase "sold as-is" causes more buyer confusion than almost any other term in real estate. Most buyers interpret it as: "the seller is telling me nothing about the property and I have no recourse for anything I find." That is incorrect. As-is means the seller will not make repairs. It does not mean the seller has no disclosure obligations. It does not mean the buyer cannot inspect. And it absolutely does not protect the seller from liability for known material defects that were deliberately concealed.

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What As-Is Actually Means in a Contract

What As-Is Means

The buyer agrees to purchase the property in its current condition. The seller will not make repairs, will not provide credits for defects found in inspection, and will not renegotiate price based on condition issues. The buyer accepts the risk of future condition-related costs.

What As-Is Does NOT Mean

As-is does not eliminate the seller’s obligation to disclose known material defects. Most states require sellers to complete disclosure forms identifying known issues with the property — structural problems, water intrusion, roof leaks, permitted and unpermitted additions, environmental hazards (lead, asbestos, radon). As-is language does not override state disclosure law. A seller who knowingly conceals a material defect in an as-is sale faces the same fraud and misrepresentation liability as any other seller.

The Seller’s Disclosure Obligations in an As-Is Sale

Disclosure Category	Seller Must Disclose?	Notes
Known structural defects (foundation, roof, walls)	Yes	Known at time of disclosure; sellers cannot disclose what they don’t know
Water intrusion / history of flooding	Yes	Both current and historical; often the most litigated disclosure item
Unpermitted additions or alterations	Yes	Must disclose any work done without permits
Lead paint (pre-1978 homes)	Yes — federal law	Federal lead paint disclosure required for all pre-1978 homes regardless of as-is
Asbestos / radon / mold (if known)	Yes	Known environmental hazards must be disclosed
HOA delinquencies or special assessments	Yes	Known or pending assessments; seller requests HOA estoppel letter
Death in the home	Varies by state	CA: disclose if within 3 years; AZ: no requirement; many states vary; murder/violent death: often longer period
Neighbor disputes or litigation	Often yes	Any known dispute that affects the property or its use
Condition items the seller doesn’t know about	No	Sellers disclose what they KNOW; executors/estate sellers often genuinely don’t know the property’s history
Sellers who answer "I don't know" to disclosure questions when they actually do know are creating significant legal exposure. The concealment of a known material defect in an as-is sale does not become protected by the as-is language — it becomes fraud.

The Buyer’s Rights in an As-Is Contract

The Right to Inspect

As-is does not eliminate the buyer’s right to inspect. Buyers in as-is transactions should inspect as thoroughly as any other buyer — or more, since they are accepting condition without recourse. The difference: in an as-is contract, the buyer cannot use inspection findings to demand repairs or credits. They can, however, cancel the contract during the inspection period if what they find is more than they are willing to accept.

The Right to Cancel During Inspection Period

Even in an as-is contract, if the buyer has an inspection contingency, they can cancel during the inspection period for any finding. The as-is designation affects the seller’s obligation to remediate, not the buyer’s right to exit if the condition is unacceptable. Walk away if what you find changes your willingness to pay the price. Do not walk away expecting the seller to remedy it — they will not in an as-is sale.

When As-Is Sales Are Most Common

Situation	Why As-Is	Buyer Consideration
Estate and probate sales	Executor cannot warrant condition they did not observe or experience	Inspect thoroughly; executor genuinely may not know history
Foreclosure / REO sales	Bank cannot make representations about a property it never occupied	Inspect everything; bank will not negotiate on condition
Heavily distressed property	Seller is pricing to reflect condition; repairs are in the price	Know the remediation cost before offering; price your offer to reflect actual work required
Investor-to-investor sale	Sophisticated parties both understand the condition; disclosure formalities may be reduced	Still inspect; still review disclosures; sophistication does not eliminate fraud protection
Owner who can't afford repairs	Credit may be an alternative; explore before assuming as-is is the only structure	Negotiate a credit or price reduction for major items even in nominally as-is sales

The Inspection Contingency Is Your Only Protection in an As-Is Sale

In an as-is contract, your inspection contingency is the mechanism that allows you to exit if what you find is unacceptable. Never waive your inspection contingency in an as-is sale. The seller’s refusal to make repairs does not mean you should buy the property without knowing what it needs. It means you need to know more, not less.

“The as-is sale I worry about most is the one where the buyer interprets as-is as "I shouldn’t bother inspecting." As-is means the seller won’t repair. It does not mean the buyer shouldn’t know what they’re buying. In an as-is estate sale where the executor genuinely doesn’t know the property history, I actually want the buyer to inspect more thoroughly, not less. More specialists: sewer scope, foundation, HVAC. Because there is no seller knowledge to compensate for what the inspector might miss. The inspection contingency is your only escape hatch. Use it.”

— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®

Does as-is mean the seller doesn’t have to disclose anything?

No. As-is means the seller will not make repairs. It does not eliminate the seller’s legal obligation to disclose known material defects. State disclosure laws apply regardless of as-is language. A seller who knowingly conceals a material defect in an as-is sale faces the same fraud and misrepresentation liability as any other seller.

Can I still inspect a home being sold as-is?

Yes. Buyers in as-is contracts retain the right to inspect. What changes: the seller will not repair or credit for anything found. What doesn’t change: your ability to cancel during the inspection contingency period if what you find makes the property unacceptable at the agreed price. Inspect thoroughly in as-is sales — more specialists, not fewer.

What must a seller disclose in an as-is sale?

Any known material defect that would affect the property’s value or desirability: structural issues, water intrusion, unpermitted work, environmental hazards, HOA delinquencies. Federal law requires lead paint disclosure on pre-1978 homes regardless of as-is. Death in the home disclosure varies by state (CA: 3 years; AZ: not required). Sellers disclose what they know; estate sellers may legitimately not know the property’s full history.

Can I negotiate in an as-is sale?

Yes. As-is is a starting negotiating position, not an immovable one. A major finding in the inspection gives the buyer leverage to renegotiate price or credit, even in a nominally as-is sale, because the alternative for the seller is re-listing. Sellers who price aggressively as-is and then refuse reasonable credits on major findings often end up with a canceled deal and a re-list.

Related Guides

Own Luxury Homes® — agents who know the exact disclosure obligations in as-is sales and protect buyers with thorough inspections regardless of contract language. 12-Point Agent Integrity Audit™. Talk to a contract specialist ›

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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)