Expert: liznarr - 8/7/2007

Question
We have found a property that we want to purchase. We have a sales agreement that was dependent on loan approval which we just received. The agreement has expired. Before I agree to a new one I am seeking information about waiving the required disclosures under the TN Residential Property Disclosure Act and purchasing the house "AS IS". What are those disclosures and should I do this?

Answer
Hi Virginia,

I am quoting below language from the Tennessee Real Estate Commission site --http://tennessee.gov/commerce/boards/trec/rulesandlaws.html/66/66-5-210.htm --  regarding disclosure on residential property  (you can go to this site and view the suggested form):

“CHAPTER 5 CONVEYANCES OF PROPERTY
66-5-210. Disclosure form.

The Tennessee Residential Property Disclosure Act states that anyone transferring title to residential real property must provide information about the condition of the property. This completed form constitutes that disclosure by the seller. This is not a warranty, or a substitute for any professional inspections or warranties that the purchasers may wish to obtain. Buyers and sellers should be aware that any sales agreement executed between the parties will supersede this form as to any obligations on the part of the seller to repair items identified below and/or the obligation of the buyer to accept such items ‘as is.’ "

I would never waive any disclosures by Seller as to property condition.  Take any and all information the Seller is willing to provide to you (required by law or otherwise) which will aid you in making an informed decision.  Unless you are a very savvy Purchaser and/or have an excellent home inspector do an inspection for you BEFORE you bind yourself to any Contract of Sale in “as-is” condition, take all the information you can get.

If any Contract you enter into gives you the right to terminate the Contract if a home inspection reveals more defects than you originally knew of, in that instance it will be okay to sign a Contract BEFORE an inspection.  Do, however, first make sure you have the right to terminate if an inspection is unsatisfactory.

The above language quoted from the Tennessee Real Estate Commission site simply says that IF YOU PURCHASE A PROPERTY IN “AS-IS” condition, you are waiving any obligation on the part of the seller to REPAIR any defects disclosed.  Waiving the right to have a copy of the Seller’s disclosure is not in your best interest, and from what I read on the Tennessee Real Estate Commission site, you can still purchase in as-is condition without waiving receipt of the disclosure form.

I hope the above is helpful for you.  Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth