As Is Sales Agreement Template for the United States

An As Is Sales Agreement is a legal contract that allows you to sell property or goods without providing warranties or guarantees about their condition. Under United States law, this type of agreement must carefully comply with the Uniform Commercial Code (UCC) and various federal and state regulations to ensure enforceability while protecting both parties' interests.

When do you need this document?

You need an As Is Sales Agreement when selling used vehicles, estate sale items, foreclosed properties, or any goods where you cannot or do not want to guarantee their condition. This agreement is essential for garage sales, online marketplace transactions, business equipment sales, and real estate transactions involving distressed properties. It's particularly valuable when you're selling items that may have hidden defects or when you lack complete knowledge about the item's history or condition.

Key legal considerations

The most critical element is the warranty disclaimer clause, which must be conspicuous and clearly written to comply with UCC Section 2-316. You must include specific language that disclaims both express and implied warranties, including merchantability and fitness for a particular purpose. Known defect disclosure requirements vary by state, and failing to disclose material defects can void your As Is protections. The agreement should specify exactly what is being sold, the purchase price, and payment terms. Consider including inspection periods, delivery terms, and dispute resolution clauses. Remember that consumer protection laws may override certain As Is provisions, particularly in sales to individual consumers rather than businesses.

Legal requirements in United States

Under the UCC Article 2, As Is clauses must be conspicuous-typically in bold, capitalized, or contrasting text-to be enforceable. Federal laws like the Magnuson-Moss Warranty Act may apply to consumer goods sales, potentially limiting your ability to disclaim certain warranties. State laws vary significantly regarding disclosure requirements, cooling-off periods, and consumer protections. Some states require specific language or formatting for warranty disclaimers, while others mandate disclosure of particular types of defects. You must ensure the agreement includes all essential contract elements: offer, acceptance, consideration, and legal capacity of all parties. The contract should be signed by all parties and properly witnessed where required by state law.