Buying a Property on an “As is, Where is” Basis

When buying property on an “as is, where is” basis, or where the standard warranties have been removed, it’s vital that you understand what that really means: you’re accepting the property in its current state, with all its faults. Visible and hidden.

These types of sales are not your typical real estate transactions. They come with little to no assurances. In a standard agreement, a standard suite of warranties is included and these themselves are quite limited. Strip those away, and the deal is truly on a buyer beware basis.

If something’s wrong — structurally, legally, or financially — that problem becomes yours the moment the deal is done.

If the foundations are cracked, the roof leaks or unconsented work turns up after settlement, you won’t be able to go back to the vendor for compensation. You will own the problem just as surely as you own the title.

This is especially true where:

• The seller is a bank, acting under power of sale (mortgagee sale);
• The seller is an estate trustee, who may have no knowledge of the property;
• The property has suffered natural disaster damage or been uninsured; or
• Express warranty clauses have been deleted or limited in the agreement for any other reason.

Due diligence isn’t optional. It’s essential.

Before you commit, you must carry out your own investigations. Get building and engineering reports, check insurance options, review council records and understand the title. If insurance can’t be arranged or existing claims can’t be assigned, finance can fall over and risk increases.

Buying a property under these conditions can work out. But it always involves more risk and more responsibility. That’s the trade-off. If it goes wrong, the law will not rescue you. And nor can we.

Our role is to make the legal position clear: unless the vendor has given you a specific warranty in writing, you buy the property exactly as it stands, with no comeback.

We can’t guarantee the property is sound. We can’t warrant that the plumbing works, the wiring is compliant or that the extension or new fireplace was built with a consent. So you need to go in with eyes wide open.

In short: You are taking on the risk. Not the agent. Not the seller.

This isn’t to scare you off. But what we can say is not to hope for a great bargain with minimal legwork, this type of purchase is not for you. These sales reward diligence and punish complacency.

That’s why due diligence is not just recommended — it’s critical.

Be smart. Ask questions. Do the groundwork. Better safe now than sorry later.