There's a nifty little clause in most standard BC residential real estate contracts that reads: "VIEWED: The Property and all included items will be in substantially the same condition at the Possession Date as when viewed by the Buyer on (insert date).
There is a not so nifty little clause in many foreclosures and run down property contracts that reads: "As is, where is."
What does that mean? It means that no one is guaranteeing ANYTHING about the home, attachments, or property. It means, in the strongest possible way: BUYER BEWARE!
If you saw the property and it had nice appliances and lighting fixtures, a cute array of curtains and door knobs, windows that worked, doors on bedrooms, attached porch, etc., etc., do not assume property will be in any recognizable shape as when you first saw it. It might be stripped down to studs. Everything might be broken or gone.
Your only recourse is this. None. That's right, none.
On acreage if you discover a leaky oil tank buried that required tens of thousands of dollars to remedy your only recourse is this. None.
Please understand that every ounce of risk is on the Buyers in these situations. Your Realtor has no remedy, the sellers are likely already gone and bankrupt, the bank is only trying to recoup their losses and odds are good that no one has loved or maintained that property in a long, long time.
Be careful out there! And, always, always, always use a great Realtor that you would trust with your favourite aunt!
There is a not so nifty little clause in many foreclosures and run down property contracts that reads: "As is, where is."
What does that mean? It means that no one is guaranteeing ANYTHING about the home, attachments, or property. It means, in the strongest possible way: BUYER BEWARE!
If you saw the property and it had nice appliances and lighting fixtures, a cute array of curtains and door knobs, windows that worked, doors on bedrooms, attached porch, etc., etc., do not assume property will be in any recognizable shape as when you first saw it. It might be stripped down to studs. Everything might be broken or gone.
Your only recourse is this. None. That's right, none.
On acreage if you discover a leaky oil tank buried that required tens of thousands of dollars to remedy your only recourse is this. None.
Please understand that every ounce of risk is on the Buyers in these situations. Your Realtor has no remedy, the sellers are likely already gone and bankrupt, the bank is only trying to recoup their losses and odds are good that no one has loved or maintained that property in a long, long time.
Be careful out there! And, always, always, always use a great Realtor that you would trust with your favourite aunt!
3 comments:
Another good post Beth...And from a lenders point of view "as is where is" will require a full detailed Home Inspection to identify what exactly the problem areas are...are often these are serious enough to limit financing, or even decline financing until either the seller fixes them, or the purchaser has, or can borrow enough extra money to make ALL repairs to the lenders satisfaction.
Chris Heidt
Tekamar Mortgages Ltd
As we've discussed too, Chris, the odd part about foreclosures is that people end up in a bidding war at times; not unlike an auction, and end up overpaying on top of everything! Appreciate your comments, thanks!
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