Demystifying the āas is where isā basisPosted on September 24, 2013 - Featured, Investment.
In property transactions, the term āas is where isā is a term or condition of a sale where the property is sold based on whatever condition it exists in, that the buyer accepts it āwith all faultsā, whether or not immediately apparent.
It is not an exclusive term for property transactions though it is probably more prevalent for the sale of property because the seller lets the purchaser decide on the purchase after inspecting the property. The purchaser must accept the property, with warts and all. The purchaser cannot use the condition of the property at the time of purchase as an excuse to cancel or rescind the purchase after the sale is concluded.
āAs is where isā is usually seen in advertisements for completed properties in the secondary market and auctioned property.
For example, a secondary property may have defects which can only be detected later by a contractor or plumber, but the purchaser should inspect the property with these professionalsā advice before the transaction. Auctioned properties, meanwhile, can sometimes have previous owners āsquattingā in them.
Even primary properties sold by housing developers which are completed but not issued a Certificate of Completion and Compliance may be sold under an āas is where isā basis. Under such circumstances, the housing developer does not need to give any warranty to the purchases or make good any defect found on the property after the sale of the property.
If the property is not completed, and the property is a residential property governed by Housing Development (Control and Licensing) Act 1966, the purchaser is given two or three yearsā warranty for the property: two years for landed residential property and three years for stratified or subdivided residential property.
If the property does not get a warranty, and is sold on an āas is where isā basis, the purchaser can use whatever condition of the property as leverage while negotiation is underway. The purchaser can negotiate to pay less by pointing out the cost of repair for the property. That is why a purchaser should hire a contractor to give the property a once-over to ensure the purchaser is satisfied with the condition of the house. This also applies for completed property bought from a housing developer and auctioned property.
As for the seller, the concept of āas is where isā becomes a defensive mechanism. Defending the asking price of the property will hinge on the concept of āas is where isā. The seller can claim that any defects on the property were already considered before the asking price was announced to the world. It is an like an announcement by the seller saying, āThere is something wrong with this house but if you are willing to buy it at the price I am asking, letās make a deal.ā
As a conclusion, āas is where isā is not as simple as it seems. Nowhere else does the advice of caveat emptor or buyers beware be considered more than when a property is being sold ā
as is where isā.
good definition. but most likely applicable for sub-sale. buyer have to be extra careful when see this terms.