As Is Purchase Agreement Template for the United States

An As Is Purchase Agreement is a crucial legal document that protects you when buying or selling property or goods where the seller wants to limit liability for the item's condition. Under United States law, this agreement transfers ownership while explicitly disclaiming warranties, meaning you accept the item exactly as it currently exists, with all faults and defects.

When do you need this document?

You'll need an As Is Purchase Agreement when selling used vehicles, purchasing foreclosed properties, buying estate sale items, or acquiring equipment from businesses closing down. This document is particularly valuable in real estate transactions involving older properties, distressed sales, or situations where extensive repairs may be needed. It's also commonly used for purchasing used machinery, electronics, or collectibles where the seller cannot guarantee functionality or condition.

Key legal considerations

The most critical element is the warranty disclaimer clause, which must be conspicuous and clearly written to be enforceable under the Uniform Commercial Code. You must ensure the buyer acknowledges they've had opportunity to inspect the item and understands they're waiving claims for defects. The agreement should specify exactly what's included in the sale and detail any known issues or limitations. Payment terms, delivery arrangements, and title transfer procedures must be clearly outlined. You should also consider including dispute resolution clauses and specify which state's laws will govern the agreement. Remember that certain consumer protection laws may still apply despite the "as is" designation, particularly for residential real estate transactions.

Legal requirements in United States

Under the UCC Article 2, warranty disclaimers must be conspicuous and use specific language like "as is" or "with all faults" to be effective. The Statute of Frauds requires written agreements for sales over $500 or real estate transactions. Consumer protection laws, including FTC regulations and the Magnuson-Moss Warranty Act, may limit the effectiveness of warranty disclaimers in consumer transactions. State-specific disclosure requirements vary significantly, with some states mandating property condition disclosures even in "as is" sales. Product liability laws may still hold sellers responsible for concealed defects or safety hazards. Real estate transactions often require additional disclosures about environmental hazards, structural issues, or zoning restrictions regardless of the "as is" designation.