Understanding the "As Is Where Is" Clause in Your Australian Capital Territory Property Contract
Plain English Definition
"As Is Where Is" means that you agree to purchase the property in its current physical and legal condition at the time of exchange, including all existing faults, defects, and unapproved structures. In the context of an ACT Contract, this clause effectively removes the seller’s responsibility to repair the property or ensure it meets specific building standards before settlement.
The Danger Zone: Buyer's Risk
- Unapproved Structures: Many Canberra homes feature pergolas, decks, or garage conversions that may not have ACT Planning and Land Authority (ACTPLA) approval; under this clause, you inherit the cost and legal risk of these illegal works.
- Latent Defects: You take on the buyer's risk for "hidden" issues not easily seen during a walkthrough, such as structural foundation cracking, rising damp, or faulty electrical wiring.
- Building and Compliance Reports: While the standard ACT Contract includes a building report, an "As Is Where Is" special condition can override standard warranties, meaning you cannot claim compensation for defects identified after the exchange.
- Maintenance and Wear: The seller is generally not required to fix minor issues like leaking taps, cracked tiles, or broken appliances that were present when you inspected the home.
- No Recourse Post-Settlement: Once you settle on an Australian Capital Territory property contract containing this clause, you lose almost all legal rights to sue the seller for the physical state of the building.
- Pest Infestations: If active termite damage is discovered after the cooling-off period, the financial burden for treatment and structural repair falls entirely on the purchaser.
Real-Life Australian Capital Territory Scenario
Wei, an investor from Sydney, purchased a 1970s suburban home in Belconnen using a standard ACT Contract that included an "As Is Where Is" special condition. After settlement, he discovered that the rear sunroom had been built without a slab thickening and lacked a Certificate of Occupancy, leading to a $30,000 rectification order from the ACT Government. Because Wei had signed the "As Is Where Is" agreement, he had no legal grounds to seek damages from the seller for the non-compliant structure. Wei was forced to pay for the demolition and rebuild out of his own pocket to make the property rentable.
The Lesson: Never rely on a visual inspection alone; always cross-reference the Building and Compliance Report with the physical structures on-site before agreeing to "As Is Where Is" terms.