For most Hawaii residential real estate purchases, the seller will want to sell the property “As Is” and not provide the buyer with any representations or warranties regarding the property. The reason for this is that the buyer may have a claim for damages against the seller should the seller provide any warranties to the buyer that are false or inaccurate.
Therefore, in the event the Hawaii Association of Realtor’s Standard Form Purchase Contract is used, the “As Is” Addendum is normally completed by the seller and attached to the Hawaii Purchase Contract. The “As Is” Addendum allows the seller to disclaim that he/she is making any warranties with respect to the property being sold. Also, through the “As Is” Addendum the buyer acknowledges that he/she is buying the property in its then existing condition.
Although an “As Is” Addendum may be attached to the Hawaii Purchase Contract, the seller still has an obligation to disclose material facts to the buyer. The buyer also has the right to inspect the property. If the buyer is not satisfied with the inspection, the buyer has the ability to cancel the Hawaii Purchase Contract.
It should also be noted that the “As Is” Addendum does not necessarily provide the seller with absolute protection from all claims that the buyer may have regarding the property. For example, fraud or misrepresentation of material facts by the seller may not be covered.
Therefore, by signing the “As Is” Addendum, seller should be aware that the buyer is surrendering some rights, but not all rights against the seller relating to the property. Full disclosure followed by a disclaimer of warranty may be the most prudent course of action.
As you can see there are limits to the “As Is” Addendum and the many times the parties and their brokers do not understand these limits.
Contact us and we’ll help you review your Hawaii Purchase Contract so you understand your rights and risks.
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