“As Is Sale” in New Jersey Help

[Christopher Veljkovic]

What does “As Is Sale” really mean in NJ?

The Situation:

A tenant is offering to purchase duplex in Essex county NJ. I don’t mind selling it, however, I do not want to put any more money into repairs. The home is in working order, cosmetically not so nice but the mechanics are solid. So, after we determine the price:

•How do I relinquish all liability of the home during the sale and even in the future?

•Is there a certain contract that a real-estate attorney can put together or a template already in place?

Also, if the tenant is going for a mortgage, I’m sure that the mortgage company is going to have certain things taken care such as oil tanks in the ground and any other requirements in order to finalize a sale. How do I avoid this and have the tenant/purchaser assume all responsibility?

Not sure if these are the right questions but some direction would be greatly appreciated!

Thanks and stay safe!

[David M.]

@Christopher Veljkovic

Basically, all NJ transactions in NJ are “as-is.” The buyer can request the seller make a repair or alternation. If the seller refuses and no negotiated settlement can be reached, under the standard inspection clause the buyer can back out the deal. So, technically you aren’t liable for making any repairs that the buyer wants as nobody can “force” you to do anything with your property that you don’t want.

However, if you want to sell your property to somebody obtaining a mortgage, somethings will have to be taken care of, eg a UST even if decommissioned. Again, you can’t be forced to sell , your other option is a cash buyer without an aversion to risk

As @jonathan Greene provided, you can use the pretty standard “distressed sale” verbiage telling the buyer that you have no intention of making any improvements or alterations to the property, and you aren’t even going to do the customary tasks sellers normally do for a transaction — you asked how not to have any liability for this transaction. As for future liability, once Title is transferred you generally shouldn’t haven’t any future liabilities, generally.

I hope this helps. Let me know if there is anything else