As-Is Sale

Understand what an as-is sale means in Canadian real estate, what buyers should expect, and how to protect yourself during the transaction.

As-Is Sale



What is an As-Is Sale?

An as-is sale is a real estate transaction in which the property is sold in its current condition, with no obligation on the seller to make repairs or offer warranties.

Why As-Is Sales Matter in Real Estate

In Canadian real estate, as-is sales are common for estate properties, distressed homes, or when sellers want to avoid the cost or liability of fixing issues before closing.

Key characteristics of as-is sales include:
  • No repairs by the seller before closing
  • Buyer assumes responsibility for defects
  • Property is typically priced lower to reflect condition
Buyers are encouraged to conduct thorough inspections and due diligence, as material latent defects must still be disclosed by law. Waiving inspection in an as-is sale increases risk significantly.
Understanding the implications of an as-is clause helps buyers negotiate effectively and avoid unexpected renovation costs or legal issues.

Example of an As-Is Sale

A seller lists their property as-is for $620,000 due to outdated plumbing and roof issues. The buyer completes a home inspection and adjusts their offer accordingly.

Key Takeaways

  • Property sold without repairs or warranties.
  • Buyer accepts all visible and hidden flaws.
  • Common in estate and distressed sales.
  • Inspection still highly recommended.
  • Lower price typically reflects condition.

Related Terms

  • Material Latent Defect
  • Home Inspection
  • Seller Disclosure Statement
  • Distressed Property
  • Buyer Beware

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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