To sell a home as-is, you write into the sales contract that the buyer takes the property in its current condition and that you will not pay for repairs or credits, then you meet every disclosure duty the law still imposes on you and move the deal through the normal escrow and closing process. The clause shifts the cost of future repairs to the buyer. It does not let you hide what you know, and it does not waive federal or state disclosure rules.
What an As-Is Clause Actually Does
An as-is clause changes who pays for problems. You are telling the buyer you will not fix known or unknown issues, and the buyer is accepting that risk. That is the point of the language, and it is designed to keep the buyer from suing later over physical defects discovered after the sale closes.
It is not a license to lie. If you make a false statement about the property or intentionally conceal a serious defect, the buyer can still sue for fraud. The clause also does not override mandatory federal and state disclosure laws. It works best when you are fully transparent about the property’s known history and put the as-is terms in writing clearly.
Disclosures You Still Have to Make
For any home built before 1978, the Residential Lead-Based Paint Hazard Reduction Act sets requirements you cannot contract around. Before the buyer is legally bound, you must give them an EPA-approved lead hazard information pamphlet, include a formal Lead Warning Statement in the contract, disclose any known lead-based paint or hazards, and hand over any evaluation reports you have. The buyer also gets a 10-day window to conduct their own lead inspection or risk assessment, though both sides can agree in writing to change that period.1Office of the Law Revision Counsel. 42 U.S.C. § 4852d
The penalties are steep. A seller who knowingly fails to disclose lead hazards is liable for triple the damages a buyer proves in a lawsuit, and can face civil money penalties for each violation.2Office of the Law Revision Counsel. 42 U.S.C. § 4852d – Section: Penalties for violations
State law adds a second layer around latent defects, meaning physical problems a standard professional inspection might not catch but that you already know about. Common examples:
- A history of basement flooding
- Cracked foundations
- Hidden termite damage
Hiding these or putting false information on a disclosure form opens the door to claims of fraud or negligent misrepresentation, as-is clause or not.
Most states require you to complete a property condition disclosure statement covering major systems: roof, plumbing, sewage, and similar items. Answer honestly. The form can document what the buyer knew going in, but a sloppy or inaccurate answer increases your legal exposure rather than reducing it.
Writing the Contract
The contract needs a full legal description of the property, which you can pull from the current deed. A title search will surface any existing liens or judgments that have to be cleared before you can deliver clear title to the buyer. Getting the property’s tax identification number is standard practice.
State realtor groups and legal document services publish standardized contract forms. Whatever form you use, the as-is language should be explicit: the buyer is relying on their own investigations and inspections rather than on any promises from you, and you are providing no warranties about the condition of the property or its fitness for the buyer’s particular use. If the main contract does not have an as-is section, use an addendum that confirms no warranties are being given.
Even in an as-is deal, buyers typically keep several contingencies that let them cancel:
- Professional home inspections
- Obtaining a mortgage with specific terms
- Appraisals required by a lender
- A clear title report
The contract locks in the purchase price, the earnest money deposit, and the closing date. As-is does not mean the buyer loses their right to walk away during the inspection period; it usually means you are not agreeing in advance to pay for whatever they find.
Closing the Sale
Once both sides sign, the deal goes into escrow. In many areas the contract is sent to a neutral third party, such as a title company, that holds the funds and coordinates paperwork. The due diligence period opens, and you give the buyer access for inspections and the lender’s appraisal on the timeline the contract sets.
If the buyer moves forward, the title company works through any outstanding liens, and you sign the deed in front of a notary. The title company records the new deed with the local recorder’s office, which is the public step that puts the change of ownership on file.
If the buyer is using a mortgage, federal rules require the settlement agent to give you a Closing Disclosure no later than the day of closing, laying out the final sale price, your closing costs, and the rest of your financial side of the deal.3Consumer Financial Protection Bureau. 12 C.F.R. § 1026.19 – Section: Mortgage loans – final disclosures Cash sales are not covered by that federal requirement, and the parties commonly use a simpler settlement statement instead. You receive your proceeds by wire transfer or certified check once costs are paid.
What Liability Remains After Closing
Closing is the milestone, not the end of your exposure. You still have tax reporting to handle, and you remain potentially liable for undisclosed defects and for anything you misstated during the sale. The as-is clause protects you from being on the hook for repairs the buyer wants after the fact; it does not protect you from a claim built on something you knew and did not say.