Question about what constitutes AS IS in contract

[MNUZZI]

What is the name of your state? New Jersey

I've been lurking on this site for a while, and have been quite impressed with the knowledge and helpfulness extended here. I now have an issue with a home I'm trying to buy that I need some guidance on. I apologize if I start rambling, but I'm quite upset about this.

I entered into a contract to buy a home. I made almost a full asking price offer (almost unheard of in this kind of market) which was quickly accepted by the seller. The contract stated AS IS, with the buyer (me) having to obtain a C/O. My attorney amended the contract to state that I would be responsible for up to $500 towards amending any violations found, and if neither party can come to a meeting of the minds as to what will be credited, then either one can end the deal. The seller's attorney agreed to the amendments.

There were some structural issues found on the C/O inspection, particularly green exterior mold, a small gap in the foundation, and having to install gutters/leaders. There were also other smallers isues not relating to the actual structure of the home. I instructed my attorney to tell the seller's attorney that I would like a credit at closing to help with the costs of abating the structural issues. The seller herself called my attorney in a rage basically saying she's not giving me anything, and if I didn't like it, she's not going to sell the house to me. My attorney wanted to know how I want to proceed. There are several reasons why I want this deal to continue which I won't list here, so I told him I'd have to think about it overnight and get back to him in the morning.

The seller is of the impressison that AS IS means AS IS, period. My attorney and I feel that AS IS should not apply to structural damage or mold. Plus, we have an ameneded contract stating that anything over the $500 cap needs to be negotiated. I would like to know who is in the right here, me or the seller?

Thank you so much for your help (and patience).

[FlyingRon]

House sales are "as is" by default. Of course, they're not allowed to conceal defects and if a disclosure statement is required, then they need to disclose things they know about. However, none of this stuff sounds like concealed defects but rather failure of you to do proper due diligence. This is why it's always a good idea to have an explicit inspection contingency and if the seller won't agree to that, you need to do a very careful inspection prior to signing the contract.

I certainly wouldn't buy a house in NJ that wasn't contingent on the seller getting the CO.

None of the enumerated things seem to be "structural" except maybe the foundation problem but even that may not be. The exterior "green mold" is usually treatable (and getting proper rain gutters may fix the problem that caused it.

Did the seller sign the amendment agreeing to negotiations on the excess of $500 stuff?

Have you had estimates done as to how much it would cost to satisfy the CO deficiencies?

[MNUZZI]

Thank you so much for your response. In answer to your questions:

The seller, through her attorney, did agree to the $500 cap. My attorney mailed me the approval letter.

I am in the process of getting estimates for the work required for the C/O, so I can have a better idea of what it will cost.

You are correct in saying that it maybe wasn't such a good idea for me to be responsible for the C/O. When my realtor asked why she wasn't getting the C/O, she claimed that she couldn't do the work due to her disabiliites, and didn't have the money at the time. While I did agree to getting the C/O, the seller had agreed through the amended contract that I would be responsible for only $500 for abating the violations. Anything over that amount had to be negotiated, and if neither party could agree on the amount, either one could cancel. Both my realtor and her realtor are trying to rectify this situation. They offered that the seller may have just been lashing out because of personal issues she's having. I guess that's possible, but she shouldn't take them out on me.

I know there will be people who say I should just walk away from the deal, but other than the seller issues, this house is just what i was looking for. It has large rooms, lots of land, and off-street parking, which is not easy to find in my town. It's also a price I could afford. Similar homes cost about $30,000 more than my budget allows.

Thank you again for the advice.

[HomeGuru]

Originally Posted by MNUZZI

What is the name of your state? New Jersey

I've been lurking on this site for a while, and have been quite impressed with the knowledge and helpfulness extended here. I now have an issue with a home I'm trying to buy that I need some guidance on. I apologize if I start rambling, but I'm quite upset about this.

I entered into a contract to buy a home. I made almost a full asking price offer (almost unheard of in this kind of market) which was quickly accepted by the seller. The contract stated AS IS, with the buyer (me) having to obtain a C/O. My attorney amended the contract to state that I would be responsible for up to $500 towards amending any violations found, and if neither party can come to a meeting of the minds as to what will be credited, then either one can end the deal. The seller's attorney agreed to the amendments.

There were some structural issues found on the C/O inspection, particularly green exterior mold, a small gap in the foundation, and having to install gutters/leaders. There were also other smallers isues not relating to the actual structure of the home. I instructed my attorney to tell the seller's attorney that I would like a credit at closing to help with the costs of abating the structural issues. The seller herself called my attorney in a rage basically saying she's not giving me anything, and if I didn't like it, she's not going to sell the house to me. My attorney wanted to know how I want to proceed. There are several reasons why I want this deal to continue which I won't list here, so I told him I'd have to think about it overnight and get back to him in the morning.

The seller is of the impressison that AS IS means AS IS, period. My attorney and I feel that AS IS should not apply to structural damage or mold. Plus, we have an ameneded contract stating that anything over the $500 cap needs to be negotiated. I would like to know who is in the right here, me or the seller?

Thank you so much for your help (and patience).

**A: if the defects were not known to the Buyer at the time of contract acceptance, then those said defects were not part of the "as-is" condition of the property. Your attorney is correct. Review the inspection contingency clause again.