Authorization to Contract Clauses: Contract for Real Property
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FAQ
WHAT IS AN ?AS IS? CLAUSE? AS-IS clauses are best described as a species of ?disclaimer of reliance? clauses. Under such clauses, a buyer generally agrees that she is entering a contract to purchase real estate relying solely on her own judgment and not on any statement or representation by the seller.
Proposed clause: The Seller is selling this property in ?As Is? condition. Buyer acknowledges and agrees that Buyer is accepting the Property ?As Is? without any warranties, representations or guarantees, either expressed or implied, of any kind, nature or type whatsoever from or on behalf of the Seller.
A valid ?as is? clause prevents a buyer from holding a seller liable if the property is worth less than the price paid. When a buyer agrees to an ?as is? clause, the buyer assumes the risk on his own. He agrees to take on the risk in determining the value of the property.
?As is? refers to a term used in sales contracts where the buyer agrees to buy a product in its current condition, without legal recourse should the buyer discover a defect in the product after purchase.
In real estate contracts, there are contract clauses that outline the terms of the agreement and responsibilities of each party. The contract clauses address all aspects of the sale terms and are legally binding once both parties sign the document.
Authorization to Proceed or ?ATP? means the agreement entered into by the Parties as of the date hereof authorizing Contractor to perform a certain portion of the Work prior to EDC.
As-Is clauses provide the ability to sell a property while only revealing 'known' defects. The clauses can protect the seller from lawsuits, so long as they fulfilled their own duties. The seller must reveal all known defects, and cannot hide or lie about any other defects.
The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement.
