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Foreclosure 101: What is “As Is Where Is”?

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There are lots of things to consider and terms to understand if you’re a first-time property buyer. One of the things that you have to know is the phrase “as is where is,” which can often be seen in foreclosure contracts.

Below are pieces of information to help you understand the phrase.

Physical and Legal Conditions

All foreclosed properties are sold on “as is where is” basis. The phrase refers to the legal and physical conditions of the property. “As is” means “what you see is what you get.” As the buyer, you will get the property whether it is in good or bad condition. It’s not the seller’s responsibility to make repairs once you agreed to buy the foreclosed property.

This is the same with the property’s legal conditions. If there’s a problem with the property’s title or other legal problems but you still agreed to buy the foreclosed property, the seller doesn’t have anything to do with the property anymore.

On the other hand, “where is” means that the location of the foreclosed property is fixed and you can’t do anything about it.

Concisely, the phrase “as is where is” means you will get everything that comes with the foreclosed property including its location as well as its physical and legal conditions.

Importance of Due Diligence

One cannot buy a real estate property without taking important things into consideration and checking the property well—no matter how busy you are and even if you have an agent to do things for you. Though most banks show a full disclosure of the property, it’s still important to make your own due diligence and do your part as the buyer. Because a foreclosed property is on “as is where is” basis, you have to check it well and know the physical and legal conditions of the property.

Check out foreclosed properties starting at P101,000!

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