'As is' sale does not eliminate repair discussions
Q. My wife inherited a house from her aunt and we recently listed it for sale. We advertised that we were selling the house "as is" because we never lived there and didn't really know too much about the house.
A couple came along and, after some negotiating, we settled on a price. They did their inspection and sent our attorney a letter saying they found a bunch of things wrong and wanted a credit of $3,000 to compensate them for the things the inspector found. We didn't understand this as they agreed to purchase the house "as is." Our attorney told us they still had the right to do an inspection and make the request they did.
We agreed to give them a credit for less than what they asked but we still feel this was not handled properly. Your thoughts?
A. Many homeowners have a misconception of what selling a property "as is" means. They believe by selling a home "as is," the buyer is agreeing to accept the property in it's current state, warts and all. This is not the case.
Selling a property "as is" means the seller is not making any representations regarding the condition of the house or real estate. This provision is often included in situations similar to yours, when the seller does not have personal knowledge of the condition of the property. Banks sell property "as is" after foreclosure proceedings for this reason.
Absent the "as is" provision, the seller is generally making a representation that the appliances and systems are in working order and the roof and foundation are free from leaks. Any known issues must be disclosed on the Real Property Disclosure Report.
Selling "as is" does not relieve the seller of the obligation to disclose known defects. If you visited aunt's house two weeks before the sale and she complained that the roof had been leaking for years, you would be required to disclose this fact.
The contract most often used in this area contains an "as is" provision that specifically provides for a home inspection. Once your buyer discovered the defects, they had the right to terminate the contract. Rather than terminate, they elected to attempt to resolve the issue with you, which apparently was successful. From what you describe, this transaction was handled appropriately.
Q. I received a letter in the mail that offered to send me a copy of the deed to my house for $89. My husband died a few years ago and he was very disorganized. I have no idea where the deed to my house is. Do I need the deed to prove I own this house and, if so, should I get the deed from these people?
A. Presuming you live in Illinois, you do not need your deed to prove you own your house. Illinois is known as a "recording" state, meaning ownership of a piece of property is established through the recorder's office of the county where the property is located. Presuming the last recorded deed conveyed the property to you and your husband, or to a trust in which one or both of you were beneficiaries, you almost certainly own the property. I say almost certainly because if the property is in a trust, the terms of the trust dictate who is the owner.
The beneficiary of a trust can be anyone. However, in a vast majority of cases, when a husband and wife own a piece of property that is conveyed to a trust, the surviving spouse becomes the sole owner of the property.
As for the tempting offer you received in the mail, use it to light your next fire. You can travel to the county recorder's office and procure a copy of your deed for $10 or less. Most counties also have websites where you can obtain a copy of your deed, again for far less than $89.
Again, though, having a copy of your deed does not prove you own the house, though a recorded copy of the deed establishes that the grantee(s) on the deed (you and your husband, as buyers) were in title at some point in time.
• Send your questions to attorney Tom Resnick, 345 N. Quentin Road, Palatine, IL 60067, by email to tdr100@hotmail.com or call (847) 359-8983.