As Dareck Bogacki said in a recent blog post on Trulia, selling "As-Is" can be a confusing statement for both buyers and sellers. It can mean many things to many people.
In Maryland we do have an "As-Is" Addendum that we can add to our contract of sale. It states "The property is sold in "As-Is" condition as of the Date of Contract Acceptance. Seller makes no warranty, express or implied, as to the condition of the Property or any equipment or system contained therein. Seller agrees to comply with Section 10-702 of the Real Property Article of the Annotated Code of Maryland if applicable (Residental Property Disclosure and Disclaimer). The parties agree that all clauses in the Contract pertaining to property condition and wood destroying insects are hereby deleted from the Contract. Buyer understand and agrees that Seller shall have no obligation to make repairs." and it goes on from there to all the prospective buyer to have an inspection or decline an inspection.
As-Is, however, as I understand it, has nothing to do with title or defects in the title. I recently wrote a contract on a property that was in foreclosure. The contract was written as "fee simple" and the seller signed and agreed to the contract. And, depending on who forecloses on the property they are exempt from the Residential Property Disclosure and Disclaimer rule. When the title work was complete it was found that the property was not fee simple but in fact had $150/yr ground rent. The seller refused to redeem the ground rent claiming that the property was being sold "as-is". After much arguing, my clients decided to accept the property with the ground rent only because the contract process had taken so long and after many issues and many delays they were homeless and staying in hotels, with friends and family for 3 weeks after the original settlement date had passed and just wanted to move into their new home.
Selling your home in "as is" condition, however, does not mean you don't have to disclose any defects. If you have a wet basement, or if your basement leakss when it rains hard for 3 days and the wind blows from the north east then you have to disclose those facts to the prospective purchaser. If you've had termites, you have to disclose that fact.
In 1998 my ex and I bought a house, there had been termites, but the seller had it treated and the sill plate repaired. In 2004 we renovated the kitchen (the back room on the house). We had the whole kitchen gutted, windows removed and replaced and so on. When the contractors removed the original back window there was massive termite damage. The only thing holding up the back wall of my house was the siding on the outside, so the contractors had to rebuild the entire back wall of the house and replace the siding and after much additional cost I had my dream kitchen. Before they reframed the house I called Paul Weir at Weir Pest Services to come and take a look. Paul Weir has been my termite inspector for many years and I trust his opinion. He came as soon as I called him and he told me there were no live termites (yeah) but there would have been no way to know how extensive the termite damage was at the time we bought the house because inspectors can only inspect what they can see. They could see the damage to the sill plate and that was repaired but because the framing was behind siding and plaster there was no way they could have known the extent of the damage.
In Maryland and points south (and probably north too - ask your Realtor) be sure to have a termite inspection when you purchase your home and you may want to have a regular inspection afterwards too just to be safe. It's not that expensive and can save you a lot of heartache.
In 2012 the days of "caveat emptor" are gone. We live in a litigious society and people will file law suits for many things. Property condition failure to disclose is one of those things that people do sue over. The real estate contract is very clear if you know something about your home you must disclose it. Selling "As-Is" does not exempt you from disclosing defects. It simply means that you can't or are unable to make any repairs for the new buyer but if you know something then you must tell. As a Realtor/Associate Broker I insist that my sellers complete the Property Disclosure if they live in the home, and I insist that my non-resident sellers look over the questions and disclose anything they know about the home. This is just good real estate practice.
In addition, special disclosures might include things like historical designations, home owners or neighborhood association restrictions, special zoning or environmental concerns. If you home was built prior to 1978 there may also be lead based paint concerns. It is always best to err on the side of disclosure, if you are in doubt ask your real estate professional for their advice.
If you are thinking of buying or selling an home in Maryland give me a call at 410-292-0100 or start your search here and we'll talk about the market conditions and what your home could possibly be worth in today's market place if you are thinking of selling. If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building alone is worth the plunge into todays market. Century 21 New Millennium is part of the largest nationwide relocation company and can assist with your move here in Maryland or anywhere in the United States or abroad. Ask me how.
In keeping with saluting our heroes, during 2012 I am waving flat fees for active duty military, retired military and the families of fallen military, as well as policemen, firemen and emt's. If you enter into a contract by the New Year's eve I will waive the flat fee at settlement. This is a $395 savings. If you are thinking about buying or selling a home give me a call and receive full service real estate assistance from an experienced agent. Our office is open 7 days a week and we can be reached at 410-730-8888 or I can be reached directly at 410-292-0100.
In keeping with saluting our heroes, during 2012 I am waving flat fees for active duty military, retired military and the families of fallen military, as well as policemen, firemen and emt's. If you enter into a contract by the New Year's eve I will waive the flat fee at settlement. This is a $395 savings. If you are thinking about buying or selling a home give me a call and receive full service real estate assistance from an experienced agent. Our office is open 7 days a week and we can be reached at 410-730-8888 or I can be reached directly at 410-292-0100.
June Piper-Brandon ~ Associate Broker, CDPE, CIAS, ePro
No comments:
Post a Comment