The Fine Print: Part 5: "As Is" Condition Addendum

The "As Is" Condition Addendum explains that the property is being sold in its current condition, without any guarantee from the Seller regarding its quality or suitability, especially from the Buyer’s perspective. The term "property" includes the land, any buildings, and any personal items included in the sale. The Seller is not obligated to make any repairs or upgrades unless explicitly stated in the contract (this statement has been copied from the form), and there is no guarantee that the property meets current building codes, has all necessary permits, or complies with any government regulations.

Although this addendum releases the Seller from being obligated to make repairs, it does not remove their legal obligation to disclose important information about the property’s condition, as required by Hawaii Revised Statutes, Chapter 508D. The Buyer is strongly encouraged to conduct their own inspections, including property records such as tax records or building permits, and consult qualified experts, such as home inspectors, licensed contractors, or architects to get a better understanding of its condition and ensure it is suitable for their intended use, especially when the Buyer is planning to make changes to the property.

Why is all this important to know?

When a Buyer submits a request based upon the results of their home inspection, sometimes Listing Agents like to fall back on “well we have the As Is Addendum”. What they may not realize is that the form explicitly states that the “Seller is not obligated to make any repairs or upgrades…”, nowhere does it state that the Seller will not make any repairs or that the Buyer will not make a request (unless, it is noted as a Special Term in Section Q, which is sometimes the case). However, if there is no Special Term included in the contract, the As Is Addendum does not prevent the Buyer from making any requests, nor does it prevent the Seller from making any repairs as requested by the Buyer.