there has never been a phrase that has more connotations than the phrase “as is.” while many people believe that they understand what it means in the context of real estate transactions, often they are left wondering why their interpretation of the phrase is different than what is actually applied during a residential real estate transaction. as such, many people mistakenly believe that the phrase “as is” means that a buyer will be compelled to purchase the property regardless of the condition. rather, the phrase “as is” means that either the general condition of the property is already accounted for in the purchase price of the home and the seller will not address the inspection issues that may arise either by way of making actual repairs or offering a reasonable credit for same. as such, a buyer knows not to “nitpick” at inspection items and knows that the latitude of any request is very limited.

this article is intended to provide basic explanations as to the legal significance of the “as is” provision contained in any residential or commercial real property purchase and sale agreement. this article is not intended to substitute for the advice of any attorney as to a specific problem or transaction. in california, a seller of real property, be it commercial or residential, has a common law duty to disclose all known “material facts” that are not known or visually observable by the buyer.