Q: I am purchasing a home "as-is". What happens if the home's condition deteriorates between my contract date and closing?

A: Typical "lawyer answer": it depends. It really depends on the contract you negotiate with the Seller and what you mean by "as is".

Take, for example, Colorado's form Contract to Buy and Sell Real Estate (Residential). In Section 10.2 of this standard contract, the "Buyer acknowledges that Seller is conveying the Property to Buyer in an 'As Is' condition, 'Where Is' and 'With All Faults'" unless otherwise stated in the contract. Yet, in spite of appearing to be "as is," the Buyer typically has several contingencies that would allow Buyer to walk away based on the conditions of the Property, including the right to object about the inspection, other due diligence items, appraisal, ability to get a loan, and some types of damage that occur after the Contract is signed but before Closing (depending on Seller's willingness to make concessions, etc.).

So, even if Seller is initially advertising the property as being sold in "as is" condition, you should probably affirmatively ask Seller to disclose any known defects/problems in the house and preserve your right (through good contract drafting) to these types of contingencies that are typically built into a residential purchase agreement.

Non-lawyer advice: you should be getting what you believe to be a "near steal" if you are truly waiving all contingencies and accepting a property as is without the right to inspect and object. And the price would be reflecting the risks inherent in taking that approach.

Good luck,

Ashley

PS. If you have used the standard form and are specifically worried about new damages/changes to the condition between contract and closing, take a close look at Section 19 of the standard form to determine whether you are potentially protected from the types of damage you are worried about.