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December 2019 Archives

Exceptions to real estate AS-IS contract

Are all AS-IS contracts enforceable? 

The recognized purpose of an as-is clause in a contract for the purchase of property is to state clearly the full responsibility of the buyer to assess the bargain and to accept the risk that its assessment may be wrong. See Prudential Ins. Co. of Am. v. Jefferson Assocs., 896 S.W.2d 156, 161 (Tex. 1995). In the typical as-is clause scenario, "[t]he seller gives no assurances, express or implied, concerning the value or condition of the thing sold." Id. The as-is clause in that typical scenario negates any claim by the buyer that an action by the seller in the transaction caused damages to the buyer. See id. 

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