Purchasers and sellers of Hilton Head Property will run across “as-is” in the contract form and may wonder what exactly this means to them.  As a buyer or seller, the as-is part of the contract allows information about the home to be put on the table.  Paragraph 8 of the Hilton Head Area Association of REALTORS (HHAAOR) contract states that “as-is means the property is being conveyed in the condition in which it is presently found subject to the aforementioned paragraphs”.  Looking through the previous paragraphs we find out more information on what “as-is’ could be for a purchaser and seller.

Good Working Order for a Hilton Head Properties

Paragraph 4 in the HHAAOR contract form states that all appliances, heating, air conditioning, electric and plumbing systems, fireplace/chimney, pool and spa shall be in good working order; their physical condition shall be subject to reasonable wear and tear which does not adversely  affect the normal use thereof.  Further, the structure shall be reasonably sound, and roof free of leaks at the time of Closing.  The key words are that the systems should be in “good working order” at the time of closing.

A CL-100 on Hilton Head Properties

Paragraph 5 of the HHAAOR contract form is the wood infestation report.  We have termites that love living here too and 45 days prior to closing an “Official South Carolina Wood Infestation Report (CL-100) is completed.  In this report, it will state if there is damage or not.  If infestation by termites or other wood destroying organisms, or damage sufficient to recommend repair, is observed, seller shall cause same to be repaired prior to closing.

Inspections for Hilton Head Properties

One of the best ways to determine good working order is to hire a property inspector.  These inspectors report what they see when they review the home and turn on the systems of the property.  Any concerns or questions are reported back to their client for further clarification or review.  It should be noted that there are some parts of the home that may be considered to be normal wear and tear by the inspection addendum.  Once the report is completed the buyer will request from the seller the items of concerns that may need to be addressed and or repaired.

Repair, Replacement and Warranties

When the inspection reports are completed, the buyer and seller have time frames to find agreement on repairs that may be required.  Sellers arrange for qualified repair people to get the property ready for closing.  Some times the systems are in good working order, yet the systems are close or past their useful life.  Under these circumstances we suggest a warranty on the property.   These warranties are very reasonable and can be paid for the buyer, the seller, the agent or a combination of any.

Read and Review a Hilton Head contract

Purchasers and sellers can review Page 2 for more information about buying or selling property with “as-is” in the contract.  As well, Inspection Addendums usually put time frames on the inspections for  the timing and response once a property sells.  If you would like to discuss as is, inspections, warranties or great properties, just call us at (843)785-7111 anytime.  Thank you.