"As Is Where Is": Unpacking Buyer's Risk in Western Australia Property Contracts
1. Plain English Definition
"As Is Where Is" means you are buying a property in its current condition, accepting all its existing faults, defects, and issues, whether visible or hidden. When this clause is in a Western Australia property contract, the seller makes no promises or warranties about the property's state, placing the full responsibility for its condition squarely on the buyer. It's a significant clause often found in the REIWA Contract for properties sold in a particular state of repair.
2. The Danger Zone: Buyer's Risk
- Undiscovered Defects: You accept all structural, electrical, plumbing, or pest issues that aren't obvious during a pre-purchase inspection. Remediation costs can quickly run into tens of thousands of dollars, e.g., $20,000+ for a significant roof repair or re-wiring.
- Limited Recourse: Under Western Australia law and the REIWA Contract, your ability to claim against the seller for defects post-settlement is severely restricted, regardless of how significant the issue.
- No Seller Warranties: The seller is explicitly relieved of the usual implied warranties regarding the property's fitness or quality. This is a critical "buyer's risk" to understand.
- Increased Due Diligence: You must conduct extremely thorough building and pest inspections before signing, as you cannot rely on the seller disclosing every fault. Failure to do so means you wear the cost.
- Financial Burden: Any necessary repairs or upgrades, even for safety or compliance, become your sole financial responsibility immediately upon settlement, potentially impacting your budget for other moving costs or renovations.
- Insurance Implications: Insurers may decline cover or increase premiums for known, pre-existing issues that you accepted "As Is Where Is".
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4. Real-Life Western Australia Scenario
Wei, a first-home buyer in Cannington, Perth, was excited to purchase an older investment property advertised at a great price. The REIWA Contract included an "As Is Where Is" clause, which he didn't fully understand. After settlement, he discovered significant rising damp issues and a corroded hot water system, costing him over $12,000 in unexpected repairs. Despite the seller having knowledge of some issues, Wei had no legal recourse due to the clause. The lesson is clear: always get a comprehensive pre-purchase inspection and understand every clause in your Western Australia property contract, especially "As Is Where Is", to avoid substantial unexpected costs.