You are ready to sell your property, but a pre-sale inspection reveals some unwelcome surprises. Selling ‘as is’ may seem attractive, but it is not without its legal nuances. It is important to be fully informed on how an ‘as is’ transaction can protect or expose you.
What “as is” really means
An “as is” sale indicates you will sell the property in its current condition without making repairs or improvements. This arrangement shifts some responsibility to the buyer. However, selling “as-is” does not release you from complete legal obligations.
Disclosure laws in New York
New York is a “buyer beware” state regarding real estate transactions. This does not mean sellers can actively hide known issues.
In New York, state law mandates that sellers must fill out and provide a Property Condition Disclosure Statement, which asks about various aspects of the property. These aspects often include structural integrity, environmental hazards and mechanical systems. Often, you can opt out of completing the form, but you must then give the buyer a $500 credit at closing.
Potential legal consequences
Even when selling “as is,” legal issues can still arise. Here are some common problems:
- Failure to disclose: Not revealing known defects is a common cause for lawsuits. Buyers might claim you knew about a problem and hid it.
- Breach of contract: A buyer can claim you violated the sales contract if you fail to provide a clear title or misrepresent the property.
- Fraud: Intentionally deceiving a buyer about the property’s condition is a fraudulent act, and it can lead to significant legal penalties.
Legal disputes can be costly and take time to resolve. Clear communication and proper disclosure can help prevent these issues.
Protect yourself and your investment
Selling “as is” does not eliminate your legal responsibilities, and it is very important to understand these obligations. It is in your best interest to seek legal advice before selling a home. A qualified New York attorney can help ensure a smooth and legally sound transaction.