If you’ve ever reviewed a real estate deal sheet or listing in New York, you’ve likely come across the phrase “property to be sold in as is condition.” But what does that actually mean—and how does it differ from the more emphatic “as is, where is” language often found in bank-owned or REO contracts?
The short answer: not all “as is” clauses are created equal. And in New York, the difference can have real consequences for buyers and sellers alike.
⚖️ Why This Gets Confusing
There’s no single, universally accepted definition of “as is” in real estate. The meaning often depends on the context, the parties involved, and—most importantly—how the attorney drafts the contract.
This blog aims to simplify the confusion by focusing on how these terms are typically interpreted when a New York attorney prepares a contract based on a deal sheet from a real estate agent.
🧾 “As Is” in a Standard Residential Deal
When a real estate agent notes that a property is being sold “as is,” many buyers assume that means “take it or leave it”—no repairs, no guarantees. But in New York, that’s not always the case.
Most residential transactions use a standard Blumberg form contract, which includes basic representationsby the seller, even when the deal is described as “as is.” These typically include:
- Plumbing, heating, and electrical systems will be in working order at closing
- Appliances will be in working order
- The roof will be free of leaks
So, when a New York attorney sees “as is” in a deal sheet, they often interpret it to mean: the buyer accepts the property in its current cosmetic condition, but the seller is still responsible for ensuring that essential systems are functional at closing.
This interpretation reflects a balance between buyer expectations and seller obligations in a typical arm’s-length residential transaction.
🏚️ “As Is, Where Is” in REO and Bank-Owned Sales
In contrast, “as is, where is” is a much more aggressive disclaimer—commonly used in bank-owned (REO) sales and foreclosure transactions. This language is intended to make it crystal clear that:
- The seller makes no representations or warranties whatsoever
- The buyer is purchasing the property with all faults, visible or hidden
- The seller will not make any repairs or provide any assurances about the condition of the property
In these contracts, the buyer assumes full responsibility for investigating the property’s condition and accepts the risk of defects—structural, mechanical, environmental, or otherwise.
🧭 Why the Distinction Matters
Understanding the difference between “as is” and “as is, where is” is critical because it speaks directly to the parties’ expectations and legal obligations. A buyer who assumes “as is” means “no repairs” may be surprised to learn they’re still entitled to working systems under the standard contract. Conversely, a buyer entering into an “as is, where is” deal without due diligence could find themselves stuck with costly repairs and no legal recourse.
📝 Final Thoughts
If you’re a buyer or seller in New York, don’t rely solely on the shorthand in a deal sheet. Terms like “as is” and “as is, where is” may seem similar, but they carry very different legal weight. Always consult with your attorney to ensure the contract language reflects the true intent of the deal—and protects your interests accordingly.