Q: Can we cancel purchase agreement and get our earnest deposit back?
Home was listed as-is. Dual agent added “as-is condition” in “#6 other terms” section but it already says that in #11 “Condition of property.” We were given reports of previous inspections but upon further investigation, we realized repair costs may be more than we are willing and able to get done. Can we still back out based on inspection contingency? Our agent, who is also seller’s agent, said that we cannot back out for inspection contingency since we purchased as-is but we did not sign any contingency removal forms. Does purchasing as-is automatically remove an inspection contingency?
A: No, purchasing "as is" dues not automatically remove an inspection contingency. You need to read your contract carefully. Purchasing "as is" means that upon closing, there are no representations or warranties on the condition of the property. Listing a property "as is" does not remove the inspection contingency that is commonly found in residential purchase and sale agreements. The inspection contingency usually has a time limit for completing inspections. It also has either an automatic approval if not disapproved or automatic disapproval if not formally approved. You can figure this out by reading your contract carefully.
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