Attach SCR391 to SCR310 for AS IS checkbox on the last page of SCR391 above signatures.
SCR310 defines AS IS: see page 3 of 8
Parties agree AS IS means Buyer buys the Property for the Purchase Price while Seller maintains the Property from the Effective Date through Closing subject to normal wear and tear otherwise without repair or replacement and sells the Property for the Purchase Price unless otherwise agreed upon in writing by the Parties in this Contract.
Often, Sellers hold the misconception that AS IS means that the buyer has bought a "pig in a poke" and if the house burns down then the buyer has just "bought a pile of ashes for $500,000."
Often, Buyers hold the misconception that AS IS means they can "kick the tires" and walk if they want to walk or if the house has any physical defects.
Neither common misconception by Buyers or Sellers is completely accurate per the SCR standard forms.
SCR standard forms have a goal to help push the deal to closing and allow Parties choices in contract formation and allow the contract to be negotiable into a somewhat fair agreement.
Examples:
SCR310 Section 15 FIRE/CASUALTY/INJURY states that if the Property is damaged by fire, then there are procedures per the contract and the buyer has not bought a "pile of ashes for $500,000."
SCR310 Section 11 WOOD INFESTATION CONTINGENCY allows the Parties to create procedures for termite damage and moisture.
SCR310 Section 3 PROPERTY creates procedures for maintaining the Property subject to normal wear and tear.
Do not add phrases or sentences anywhere in SCR forms without lawyer oversight. Unauthorized practice of law risk.
Posted by : Byron King on 3/29/18 (Must contact SCR for updates after 3/29/18)