Real estate transactions involve a major financial commitment on the part of the buyer. It is therefore crucial that the person making an offer on a property understand the overall condition of the home.
New Jersey requires thorough disclosures when listing real estate for sale. The standard document has 22 pages of questions about different home systems. Generally speaking, there is an expectation that sellers should honestly and thoroughly disclose any known issues with real property.
Sometimes, sellers want to avoid disclosures that might deter buyers or result in lower offers. Can an as-is property listing eliminate the need to make disclosures?
Sellers must share what they know
The idea of an as-is listing can be appealing to those preparing for a real estate transaction. Instead of assuming responsibility for informing the buyer about the condition of the property, they pass that responsibility to the buyer. By selling the property as-is, they can complete the transaction without any implied promises regarding the condition of different systems.
As-is sales are possible with many types of assets, but not with real property. Sellers can list the property in as-is condition, but they are still subject to disclosure laws. If they misrepresent the condition of the property or fail to tell the buyer about a known issue, the buyer could potentially hold them financially accountable later.
Performing adequate due diligence is crucial for the protection of buyers, while thorough disclosures are important for real estate sellers. Learning more about the rules that govern real estate transactions can help buyers and sellers avoid disappointment and legal complications.