purchasing property "As is"

Came across a couple of properties which has these special conditions in s32. I had a look at the property though wondering if anyone had any experience purchasing with these conditions ? it would really mean that any person who have to get insurance prior to the auctions. and also secure the property properly.

PROPERTY SOLD “AS IS”

5.1 Property sold “as is”

The Purchaser acknowledges and agrees that it purchases the Property together

with any improvements on an “as is” and “where is” basis and therefore:

5.1.1 as a result of the independent exercise of the Purchaser's own skill and

5.1.2 in its present condition and state of repair with all existing patent and

5.1.3 in the knowledge that the Property may contain fill; and

5.1.4 subject to any obligations that the Purchaser is to assume under the

and that no representation or warranty has been made or given by the Vendor or by

any person acting on behalf of the Vendor to the Purchaser or to any person acting

on behalf of the Purchaser as to:

5.1.5 the marketability, quality or fitness for any purpose of the Property or the

5.1.6 the freedom of the Property from defects, infestations, contaminations or

5.1.7 the use to which the Property or improvements can lawfully be put;

5.1.8 whether development of any description may be carried out on the

5.1.9 whether the improvements on the Property have been built or placed

judgment after due inspection and investigation;

latent defects, infestations, contamination and dilapidation;

Vendor’s Statement (for example under section 4),

improvements;

dilapidation;

Property; or

there in accordance with each approval required by law for the building

or placement of those improvements.


PROPERTY AT PURCHASER’S RISK


6.1 Purchaser’s Risk


6.1.1 The Property, is sold as is, and will be at the Purchaser’s risk from the

Day of Sale.

6.1.2 The Vendor is not responsible for any deterioration in the Property from

the Day of Sale.

6.1.3 The Purchaser acknowledges that the Vendor will not undertake any

maintenance of the Property between the Day of Sale and Settlement

and the Purchaser must not make any requisition, objection, demand or

claim for compensation, or rescind or terminate this Contract or delay

Settlement of this Contract in respect of this.

6.2 No insurance


The Purchaser acknowledges that the Property has not been insured by the Vendor,

and the Purchaser is and will from the Day of Sale be solely responsible for any

damage or loss suffered by or that may occur to the Property for any reason

whatsoever.

6.3 Purchaser to insure


The Purchaser agrees to insure, at his or her cost, the Property immediately upon

execution of this Contract and to keep the Property insured until at least Settlement.

6.4 No delay, deduction


The Purchaser will under no circumstances be entitled to delay settlement or to seek

any deduction of the Price or to retain any monies as a

 

You could just get a cover note after the auction for the insurance. I always insure after purchase on the basis that the vendor may not have.

The bits about contamination sound dire, though!

 

There might just be something wrong with this property - or it may be some standard clauses used that the vendor's solicitor in all contracts.

Can't see how insurance could assist.

 

As is, where is provisions are usual for receiver/manager or mortgagee sales but are not that common in normal residential transactions. It's a commercial decision for you to make but ensure you do your searches and due diligence before the contract is unconditional as you will have little recourse if you find an issue after this time if the clauses are accepted.

 

I'm not familiar with Victorian contract but I would think contract these days are written broadly to cover the vendors and to pass on the risks to purchasers. Perhaps a Victorian lawyer can shed some light.

 

These are standard clauses in all the department of housing s32 contracts.