The Selling As Is Contract is essential for transactions where goods or property are being sold in their current condition without warranties or guarantees. This document is commonly used in the United States and must comply with both federal regulations and state-specific requirements. It's particularly valuable for sellers who wish to limit their liability and buyers who accept items with known or potential defects at a potentially reduced price. The contract includes crucial elements such as explicit warranty disclaimers, condition acknowledgments, and material defect disclosures as required by U.S. law. It's frequently used in various contexts, from real estate transactions to equipment sales, and must be carefully drafted to ensure compliance with the UCC and state consumer protection laws while maintaining its enforceability.
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1. Parties: Identifies and provides full details of the seller and buyer
2. Background: Brief context of the sale and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Subject Matter of Sale: Detailed description of the item(s) being sold 'as is'
5. 'As Is' Provision: Clear statement that the item is being sold in its current condition with all faults
6. Warranty Disclaimer: Explicit disclaimer of all warranties, both express and implied
7. Buyer's Acknowledgments: Buyer's confirmation of inspection rights and acceptance of current condition
8. Purchase Price and Payment: Details of the purchase price and payment terms
9. Delivery and Transfer: Terms of delivery and transfer of ownership
10. Risk of Loss: When and how risk transfers from seller to buyer
11. Governing Law: Specifies the jurisdiction and applicable law
12. Entire Agreement: Integration clause stating this is the complete agreement between parties
13. Signatures: Execution block for all parties
1. Inspection Period: Used when buyer is given a specific period to inspect the item before finalizing the sale
2. Known Defects: Used when seller needs to disclose specific known issues with the item
3. Financing Contingency: Used when the sale depends on buyer obtaining financing
4. Environmental Disclaimers: Used for real property or equipment that might have environmental implications
5. Title Insurance: Used in real property transactions
6. Broker Representation: Used when brokers or agents are involved in the transaction
7. Survival: Used to specify which provisions survive closing
8. Assignment: Used when transfer rights need to be specifically addressed
1. Schedule A - Property Description: Detailed description of the item(s) being sold, including photographs if applicable
2. Schedule B - Known Defects: List of known defects or issues with the property/item
3. Schedule C - Inspection Report: Any pre-sale inspection reports or condition assessments
4. Schedule D - Bill of Sale: Form of bill of sale to be executed at closing
5. Appendix 1 - Required Disclosures: Any state-mandated disclosure forms
6. Appendix 2 - Transfer Documents: Additional documents required for transfer of ownership
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