As Is Sales Contract Template for the United States

An As Is Sales Contract is a legal document that transfers ownership of property or goods while explicitly disclaiming all warranties about the item's condition. This type of agreement protects sellers from future claims while ensuring buyers understand they are purchasing items in their current state, with all existing defects and issues.

When do you need this document?

You need an As Is Sales Contract when selling used vehicles, machinery, electronics, or real estate where you cannot guarantee the condition. This contract is essential for estate sales, business liquidations, foreclosure properties, and private party transactions involving older or damaged items. It's particularly important when selling items with known defects or when you lack complete knowledge about the item's history or condition.

Key legal considerations

The As Is clause must be conspicuous and clearly written to be legally enforceable under the Uniform Commercial Code. You must include explicit warranty disclaimers that cover both express and implied warranties, including merchantability and fitness for particular purposes. While you can disclaim warranties, you cannot hide material defects or engage in fraudulent misrepresentation. The contract should include detailed property descriptions, purchase terms, and any known defects to ensure full disclosure. Consider including inspection periods and dispute resolution clauses to protect both parties' interests.

Legal requirements in United States

Under the Uniform Commercial Code Article 2, warranty disclaimers must be conspicuous and use specific language like "as is" or "with all faults" to be effective. State laws may impose additional disclosure requirements, particularly for real estate transactions covered by state-specific regulations. The Magnuson-Moss Warranty Act applies to consumer goods over certain dollar amounts, requiring clear disclosure of warranty terms or disclaimers. Some states have lemon laws and consumer protection statutes that limit the effectiveness of As Is clauses, especially for vehicles. Federal Trade Commission regulations may also apply to certain business-to-consumer transactions, requiring additional disclosures about known defects or safety issues.