As Is
A clause stating that the buyer accepts an item in its current condition with all faults, the seller makes no warranties about quality, performance, or fitness.
An "as is" clause shifts the risk of unknown defects from seller to buyer. The seller is saying: I make no promises about condition, performance, or hidden problems, you take it the way it sits. In contracts for goods, services, real property, and used equipment, this language is the seller's principal tool for cutting off post-closing complaints.
The clause is enforceable, but not absolute. California courts will still set it aside if the seller actively concealed a defect, made an affirmative misrepresentation, or breached a duty to disclose, especially in residential real estate, where TDS disclosures under Civ. Code §1102 are mandatory. For commercial parties dealing at arm's length, "as is" typically holds; for consumer transactions, the Song-Beverly Act and various statutory warranties can override it.
Practically, an "as is" buyer should inspect aggressively before signing, a walk-through, a third-party appraisal, code-of-record checks. After signing, the buyer's remedies narrow sharply, often limited to fraud or non-disclosure claims that are harder to prove than breach of contract.
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