What “As Is” Sales Are and Are Not
It is not carte blanche to the buyer‘s detriment but then again, in a competitive market, agreeing to do so may seem like the only option … or does it?
An ”as-is” sale doesn’t relieve the seller of all their responsibilities
When a property sells “as-is,” or a listing agent includes an ”as-is” addendum in a disclosure package practically telling you to write an offer that way, many believe that signing that addendum or the fact that the agent has stated the sale will be an as-is one, people think this somehow eliminates the seller’s obligations to the buyer and to the property entirely, but this isn’t the case. Even with an “as-is” clause in place, the seller must still maintain the property in the same condition it was when the offer was accepted (no wasting away allowed). If property damage occurs during escrow, it’s usually the seller’s responsibility to make repairs unless the buyer caused the damage. Various California and San Francisco and other local laws often require specific point-of-sale inspection or repairs, like ensuring smoke detectors are installed and water heaters are strapped (doubly so) and braced, regardless of an “as-is” agreement (with some exceptions in the probate/fixer upper sales context.
Sellers may negotiate for buyers to handle some repairs, but compliance certification remains the seller’s duty unless negotiated
An ”as-is” sale requires Sellers to Disclose
It’s important to note that the “as-is” clause doesn’t waive the seller’s obligation to make necessary disclosures. Sellers must still disclose known material defects, as required by law, including providing a Transfer Disclosure Statement (TDS) in most cases along with the local disclosure document or more detailed statewide property questionnaire buyers are entitled to receiving.
An “as-is” addendum does not allow sellers to hide defects or withhold crucial information from potential buyers. The clause simply informs buyers that the seller won’t willingly cover repairs or issue credits in favor of the buyer as related to the property’s condition.
Buyers should factor in and price any future work or renovations into their offer price — or so goes the theory
Inspections are still on the table and should be done!
Last, while an “as-is” clause can relieve the seller of some responsibilities for repairs, it doesn’t limit the buyer’s right to inspect the property or waive contingencies for investigations. Buyers retain the right to thoroughly investigate and assess the property, and sellers must still disclose all known issues. The clause benefits sellers by limiting repair obligations, but it does not excuse them from disclosing material facts or liability for misrepresentation.
An “as-is” addendum does not allow sellers to hide defects or withhold crucial information from potential buyers. The clause simply informs buyers that the seller won’t willingly cover repairs or issue credits in favor of the buyer as related to the property’s condition.
Off-Market Sales: Rare, Real, and Still Regulated
Off-market sales are the unicorns of real estate—rare, surprising, and occasionally magical. We’ve done our fair share, including the purchase of our very first home in The Castro. Kevin stopped by a garage sale and ended up walking away with the garage—and the house and land that came with it. We’ve also helped clients successfully buy homes through neighbor letters (with incredible terms, no less), postcard outreach, and even a little help from Raffi’s charm.
But while off-market deals can feel informal or serendipitous, they are still real sales—and that means the legal requirements don’t go away. Disclosures must still be completed. City point-of-sale mandates—like energy and water conservation inspections—still apply. Just because a property doesn’t hit the MLS doesn’t mean the paperwork disappears.
Many times there will be no agent on one side or an attorney on one side (or even both). While Kevin is still a licensed (but non-practicing) attorney who can speak legalese, he may still make a comment about how “lawyers can kill deals”—or not—because there’s a cadre of attorneys in San Francisco who understand that, unlike the winner-take-all approach some litigators may favor, real estate is about collaboration and getting a mutually beneficial outcome for the principals.
Need a referral to one of those attorneys? Just ask.
Buyers retain the right to inspect and investigate the property, even in “as-is” transactions.
The seller is not absolved from liability for active misrepresentations or concealed defects.
The “as-is” clause informs buyers that they are purchasing the property in its current state, but does not override legal responsibilities.
“These guys are the real deal. Kevin is amazing! He took the time to really understand what we wanted and needed, and was so enthusiastic about the process. His depth and breadth of knowledge about real estate is astounding. Not only did we find the perfect home - and quickly - but with his guidance we were successful with our bid, even though it was not the highest offer! He knew how to present the offer to appeal to the seller.”
— Eric and Eddie, Buyers, Miraloma Park
Don’t Get Blown Away by a Bad Deal!
Before you sign an ‘As-Is’ contract, know what you’re getting into. Read the fine print and make smart choices like working with Kevin+Jonathan