There’s more than one way to lose a buyer, and today’s post centers on a common one — that pesky “as is” clause.
Contracts for the sale of condos and co-ops in Manhattan and elsewhere in New York City generally include the clause, which stipulates that the buyer accepts the apartment “as is.” If the clause is not included, contingency language allows the buyer to cancel the contract in the event that the seller doesn’t agree to remediation.
Including an “as is” clause, especially for units in new buildings, shifts risk from the owner to the buyer. And the risks — e.g. shortcomings in workmanship or code issues — are manifold in new developments. So be it: caveat emptor. Continue reading