SCR391 AS IS Checkbox

//SCR391 AS IS Checkbox

SCR391 AS IS Checkbox

SCR391 has the AS IS checkbox.

SCR310 and SCR300 residential sales agreements define AS IS under the Repair Procedure Section.

SCR forms typically convert over time to an AS IS agreement should all the parties "snooze" through their deadlines.

An alternative to SCR391:

SCR "As Is" using SCR Standard Forms

(SCR "As Is" = SCR300 contract + SCR311 due diligence addendum)

Sellers often want to sell their residential Property "As Is" and sellers often envision this meaning the buyers buy with no repairs and for the agreed upon price.

Buyers often want to inspect the residential Property and then if the condition is bad enough: terminate the deal or haggle for a much lower price or even then haggle over seller making some repairs.

Very few buyers want to buy a "pig in a poke" with no ability to negotiate or terminate if the Property condition is bad enough.

Buyers know there will be some issues with the Property, but inspections may later reveal there are major issues such as termite infestation, environmental contamination, toxic mold, structural issues, or structural modifications not made in compliance with laws/regulations which may scare the buyers into not wanting to buy or not wanting to buy at the agreed upon price.

Therefore, most buyers want a due diligence period to inspect and haggle price/repairs or terminate.

Sellers receive a due diligence termination fee determined by the parties during contract negotiations. This money compensates the seller for time off the market and foregone other potential buyers.

NOTE: Foreign real estate scam artists often pose as AS IS cash buyers who want to close quickly without inspections (too good to be true is often too good to be true).

Most real buyers want to inspect and have a way to negotiation price/repairs or terminate if the condition is bad enough.

Posted by : Byron King on 5/8/18 (This information is only accurate as of 5/8/18. You must contact SCR for updates and changes to this information after 5/8/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)

By |2018-05-09T10:05:52+00:00May 9th, 2018|Legal FAQs|0 Comments

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