The As Is Addendum To Real Estate Contract is commonly used in United States property transactions where sellers wish to limit their liability for property condition and buyers agree to purchase property in its existing state. This document is particularly relevant in situations involving distressed properties, foreclosures, or when sellers have limited knowledge of property condition. The addendum typically includes provisions for buyer inspection rights, waiver of future claims, and any known defect disclosures required by state law. It serves as a crucial risk management tool while ensuring compliance with federal and state disclosure requirements.
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1. Parties: Identifies the buyer and seller entering into the addendum agreement
2. Background: References the main purchase agreement this addendum modifies and states the purpose of the addendum
3. Definitions: Defines key terms used in the addendum including 'As Is' condition
4. As Is Clause: Core provision stating property is sold in current condition without warranties or representations
5. Inspection Rights: Details buyer's right to inspect the property and time period for inspections
6. Waiver of Claims: Buyer's explicit waiver of future claims regarding property condition and acknowledgment of risks
1. Known Defects: Section listing any known issues with the property that the seller has disclosed
2. Environmental Hazards: Special section addressing any known environmental issues or hazards
3. Repair Credits: Section detailing any negotiated credits or allowances for repairs
1. Schedule A - Property Inspection Report: Attached inspection report detailing current condition of the property
2. Schedule B - Disclosure Statements: Required state and federal disclosure forms including lead-based paint disclosure if applicable
3. Schedule C - Property Condition Documentation: Photos, reports, or other documentation evidencing current property condition
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