Selling my condo unit “as is”
Selling my condo unit “as is”
I am selling a condo unit. When I verbally agreed to sell it to a very enthusiastic buyer at asking price, I agreed to inspections, including termite and radon in addition to the regular stuff. The unit is built on a slab, so no basement. The exterior is the condo association responsibility.
Now, I’m finding the buyer’s attorney dragging his feet. Apparently the demand for home inspectors is great, hence the delays. They want to extend the seller’s acceptance date. We don’t want to do this.
I now want to say to forget about inspections and sell the unit “as is.”
Is it ok to refuse inspections and say take it as is or not at all? I don’t want to do anything unethical, but this property is in great demand. I believe her attorney is responsible for the delay but am not certain.
Another thing is that the unit is in excellent condition. If the inspector nitpicks, we have no intention of mitigating anything.
Is it common practice to sell “as is”? We have nothing to hide but can’t abide by delays.
Now, I’m finding the buyer’s attorney dragging his feet. Apparently the demand for home inspectors is great, hence the delays. They want to extend the seller’s acceptance date. We don’t want to do this.
I now want to say to forget about inspections and sell the unit “as is.”
Is it ok to refuse inspections and say take it as is or not at all? I don’t want to do anything unethical, but this property is in great demand. I believe her attorney is responsible for the delay but am not certain.
Another thing is that the unit is in excellent condition. If the inspector nitpicks, we have no intention of mitigating anything.
Is it common practice to sell “as is”? We have nothing to hide but can’t abide by delays.
- Sandtrap
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Re: Selling my condo unit “as is”
You mention you made a "Verbal Agreement".
Did both parties sign anything?
Did you list the unit?
Was there a signed DROA?
Etc?
Seek legal counsel to find if it was binding and your liabilities.
Other than the above, a R/E sale “as is” may work for you.
Seek legal counsel ASAP to find out what "you” should and can do.
j
Did both parties sign anything?
Did you list the unit?
Was there a signed DROA?
Etc?
Seek legal counsel to find if it was binding and your liabilities.
Other than the above, a R/E sale “as is” may work for you.
Seek legal counsel ASAP to find out what "you” should and can do.
j
Last edited by Sandtrap on Thu Jun 17, 2021 9:07 pm, edited 1 time in total.
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Re: Selling my condo unit “as is”
Is there a contract, and what does it say?
In the usual contracts, the buyer has a fixed time to complete inspections and make any requests. It is (usually) your choice whether to allow an extension or to put the unit back on the market.
To me, advertising a unit "as is" is a red flag.
In the usual contracts, the buyer has a fixed time to complete inspections and make any requests. It is (usually) your choice whether to allow an extension or to put the unit back on the market.
To me, advertising a unit "as is" is a red flag.
Re: Selling my condo unit “as is”
Don't extend the date if you don't want to. They can find alternate inspectors in time if they really need to. But if it is just a few days (and they tell you the inspection dates they have booked), I would be courteous and extend unless it causes you a lot of inconvenience.
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Re: Selling my condo unit “as is”
What does your contract say? You have a date by which the inspection needs to happen and the inspection contingency lifted, yes? What does the person representing you say about all this?
It’s reasonable for them to ask to amend the contract to extend the dates, given the situation, but on your side…what would happen if this sale falls through? Could you just go to the next buyer and get the same or better price? You need to decide if you want to give them more time, or go on to the next buyer. Which will, of course, also take more time.
Personally, if I were a buyer and my purchase contract had an inspection contingency, I would insist on having an inspection.
It’s reasonable for them to ask to amend the contract to extend the dates, given the situation, but on your side…what would happen if this sale falls through? Could you just go to the next buyer and get the same or better price? You need to decide if you want to give them more time, or go on to the next buyer. Which will, of course, also take more time.
Personally, if I were a buyer and my purchase contract had an inspection contingency, I would insist on having an inspection.
Re: Selling my condo unit “as is”
Common? It is in the current market. I would never agree to such a condition, but I am in the minority right now. Depending on how they were going to pay for the unit, they may not be able to waive the inspection if it's required by the mortgagor.Swimmer wrote: ↑Thu Jun 17, 2021 3:51 pm I am selling a condo unit. When I verbally agreed to sell it to a very enthusiastic buyer at asking price, I agreed to inspections, including termite and radon in addition to the regular stuff. The unit is built on a slab, so no basement. The exterior is the condo association responsibility.
Now, I’m finding the buyer’s attorney dragging his feet. Apparently the demand for home inspectors is great, hence the delays. They want to extend the seller’s acceptance date. We don’t want to do this.
I now want to say to forget about inspections and sell the unit “as is.”
Is it ok to refuse inspections and say take it as is or not at all? I don’t want to do anything unethical, but this property is in great demand. I believe her attorney is responsible for the delay but am not certain.
Another thing is that the unit is in excellent condition. If the inspector nitpicks, we have no intention of mitigating anything.
Is it common practice to sell “as is”? We have nothing to hide but can’t abide by delays.
Whether you can move to the next buyer depends on the details of your agreement. If you both agreed to a certain date or have a written contract with a date and the phrase "time is of the essence", you should be clear to move on. (IANAL)
If you only have verbal agreement and have a disagreement as to what that date would be or have exact date specified, you should consult your realtor or attorney. If you don't have one of those, since they do, you should get one. (Otherwise, you're bringing a knife to a gun fight.)
Re: Selling my condo unit “as is”
are you doing this all on your own without a broker? Could be a bit tricky/risky. Out here in CA the broker gets a signed offer. If someone sees your for-sale sign and knocks on the door, great, but the broker still gets involved to go thru the legal docs. Also maybe in your part of the country is it less common but out here the agent usually has inspections done and gives copies to all who want to bid on the house.
Re: Selling my condo unit “as is”
The fact you're asking this question shows why it was a mistake to do this without a contract!
The contract can spell out anything the two of you agree to, consistent with local law - inspection or no inspection, and time frame allowed, what happens if the buyer decides not to move forward, etc. But the point is that there needs to be something that spells it out, so that you're not asking random strangers on the internet, who are unfamiliar with the marketplace and laws where you are, what to do on a six-figure transaction.
The contract can spell out anything the two of you agree to, consistent with local law - inspection or no inspection, and time frame allowed, what happens if the buyer decides not to move forward, etc. But the point is that there needs to be something that spells it out, so that you're not asking random strangers on the internet, who are unfamiliar with the marketplace and laws where you are, what to do on a six-figure transaction.
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Re: Selling my condo unit “as is”
And at least in some states ONLY WRITTEN AGREEMENTS are legal/can be enforced when dealing with Real Estate transactions. Verbal "agreements" are, uh, "worth the paper they are written on"... which is... nothing.02nz wrote: ↑Thu Jun 17, 2021 4:32 pm The fact you're asking this question shows why it was a mistake to do this without a contract!
The contract can spell out anything the two of you agree to, consistent with local law - inspection or no inspection, and time frame allowed, what happens if the buyer decides not to move forward, etc. But the point is that there needs to be something that spells it out, so that you're not asking random strangers on the internet, who are unfamiliar with the marketplace and laws where you are, what to do on a six-figure transaction.
Is this the first time you are selling any real estate?
And what about when you purchased your condo? Was there a written agreement with quite a few terms and deadlines specified? There is a reason for that being in writing (and "being in writing" may not be required for non-real estate transactions, but it can often end up being a *very* good idea!).
If you think about it, the way you've described it, how easy would it be to have the process go on almost endlessly?
RM
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Re: Selling my condo unit “as is”
"as is" doesn't mean "no inspection" - it means the seller isn't going to fix or change anything for the buyer prior to sale or give any sort of concessions . Well that's what it meant when I was house buying in the past.
You can always buy a house without an official inspection - I've done it in the past.
Odds are the buyer's mortgage lender may want an inspection/appraisal and the buyer's home insurance agent might want want an inspection.
Sometimes the city (or the local government) might not sell the "transfer stamps" necessary for the sale to got thru (at closing) without a City Inspector checking the property.
I'm guessing you will need to "negotiate" with the buyer about the inspection. It might be a moot point if their lender or insurance requires it before closing.
You can always buy a house without an official inspection - I've done it in the past.
Odds are the buyer's mortgage lender may want an inspection/appraisal and the buyer's home insurance agent might want want an inspection.
Sometimes the city (or the local government) might not sell the "transfer stamps" necessary for the sale to got thru (at closing) without a City Inspector checking the property.
I'm guessing you will need to "negotiate" with the buyer about the inspection. It might be a moot point if their lender or insurance requires it before closing.
Re: Selling my condo unit “as is”
Thanks, all, for your comments and advice. I know I made some mistakes, but I get it.
I was thinking if the deal falls through, I’d offer it again as is. As some have said, it does give rise to suspicion that something is wrong. I think what really irritates me is the attorney’s cavalier attitude as to the deadline.
I’m an impatient Type A. What can I say?
I was thinking if the deal falls through, I’d offer it again as is. As some have said, it does give rise to suspicion that something is wrong. I think what really irritates me is the attorney’s cavalier attitude as to the deadline.
I’m an impatient Type A. What can I say?
Re: Selling my condo unit “as is”
So you only have a verbal agreement, not a written contract to purchase? Are you selling FSBO or using a realtor?Swimmer wrote: ↑Thu Jun 17, 2021 5:18 pm Thanks, all, for your comments and advice. I know I made some mistakes, but I get it.
I was thinking if the deal falls through, I’d offer it again as is. As some have said, it does give rise to suspicion that something is wrong. I think what really irritates me is the attorney’s cavalier attitude as to the deadline.
I’m an impatient Type A. What can I say?
Re: Selling my condo unit “as is”
Instead maybe you should offer it with "no contingencies accepted".
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Re: Selling my condo unit “as is”
If you have a realtor, he/she isn't doing their job.Swimmer wrote: ↑Thu Jun 17, 2021 5:18 pm Thanks, all, for your comments and advice. I know I made some mistakes, but I get it.
I was thinking if the deal falls through, I’d offer it again as is. As some have said, it does give rise to suspicion that something is wrong. I think what really irritates me is the attorney’s cavalier attitude as to the deadline.
I’m an impatient Type A. What can I say?
If you don't have a realtor, or even if you do, you should have a real estate attorney.
You apparently lack a written contract which specifies timelines. If the buyer misses the deadlines, they don't get to do inspections. Quite simple.
Every property should be sold As Is in the contract...
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Re: Selling my condo unit “as is”
It should irritate you. It's a test. You have no written contract or representation. They're going to keep pushing on everything and see how far they get. That's what people do.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
Re: Selling my condo unit “as is”
Maybe you agree to extend the deadline but in exchange they sign a written contract now (that your own attorney approves) and put up earnest money.
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Re: Selling my condo unit “as is”
As the poster above said, as-is does not mean no inspection. You can get an inspection and offer that to potential buyers if selling as-is. What kind of delay are we talking about? I wouldn't give much credence to an oral understanding. You have an oral agreement (which is not binding for real estate) and the buyer has an attorney involved??? I don't think they are that enthusiastic if they haven't given you a signed contract with a check for earnest money which is standard in real estate transactions.
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Re: Selling my condo unit “as is”
Your answer to the delay: "No".
When the date passes, you keep any earnest money and then put the unit back on the market.
When the date passes, you keep any earnest money and then put the unit back on the market.
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