This form is used to evidence a buyer’s acceptance of property subject to a disclaimer of warranties by the seller.
Property Condition Disclaimer
Date:
Seller:
Seller’s Address:
Buyer:
Buyer’s Address:
Transaction: The purchase of the Property by Buyer from Seller.
Buyer’s Reliance Items: [List items of information regarding the property that the seller has provided to the buyer.]
Property:
[Contract:]
[Closing Documents:]
Consideration: The same consideration exchanged in the Transaction; in addition, Buyer’s stipulation that Seller has sold the Property at the purchase price in this Transaction on the basis that this disclaimer is a material part of the Transaction, and Seller would have required additional consideration had this disclaimer not been a part of the Transaction.
For the Consideration stated, Buyer agrees and represents to Seller as follows:
1.Inspections. Buyer has been entitled to inspect every aspect of the Property to Buyer’s satisfaction, and Buyer has actually inspected to Buyer’s satisfaction each aspect of the Property considered to be a substantial or material factor by Buyer in making the decision to complete the Transaction.
2.Importance of Disclaimer. Buyer is taking the Property in an arm’s-length agreement between the parties. The Consideration was bargained on the basis of an “as is, where is” transaction and reflects the agreement of the parties that there are no representations or express or implied warranties [include if applicable: , except for the warranty of title stated in the [deed/closing documents] [and Seller’s representations and warranties to Buyer set forth in the sales contract]]. This disclaimer is not an incidental or boilerplate provision. Buyer and Seller have relatively equal bargaining positions.
3.Level of Buyer’s Knowledge. Buyer understands that Buyer has the right to employ professionals to advise Buyer on every aspect of the Property, and Buyer has agreed not to rely on Seller for such information.
4.Absence of Seller Representations. Other than for the Buyer’s Reliance Items, which Seller has furnished to Buyer and on which Buyer is relying, Buyer is not relying on any of Seller’s representations, statements, or assertions concerning the Property. Buyer is not relying on Seller to provide any information about the Property that Buyer has not independently verified. Other than the Buyer’s Reliance Items, Buyer is relying solely on Buyer’s independent verifications, rather than Seller’s information, assertions, statements, or representations. Other than the Buyer’s Reliance Items, any information, assertions, statements, or representations made by Seller or Seller’s representatives have been recognized as puffing or opinion. Further, if such information, assertions, statements, or representations were or are incorrect, their insignificance to Buyer would not be affected, and they would not constitute misrepresentations of material fact.
5.Waiver of Warranties. Buyer is not relying on any representations, disclosures, or express or implied warranties other than those expressly contained in this disclosure [include as applicable: , the contract, the closing documents, and [describe other documents]]. Buyer is not relying on any information regarding the Property provided by any person, other than Buyer’s own inspection and the representations and warranties contained in this disclosure, the contract, and the closing documents.
6.Dangerous Conditions. Buyer has thoroughly inspected the Property to determine the existence of any conditions posing unreasonable risk of harm. To the extent such conditions have been discovered, Buyer will prevent persons from being subject to the risks of such conditions and Buyer will exercise reasonable care to reduce or eliminate the risks.
7.Consequences of Disclaimer. Buyer understands that, by executing this disclaimer, Buyer has agreed to make Buyer’s own appraisal of the bargain and to accept the risk that Buyer may be wrong. Furthermore, Buyer agrees not to hold Seller liable if the Property turns out to be worth less than the price paid or if the Property turns out to have patent or latent defects that Buyer has not discovered before closing. Instead, Buyer would be the sole cause of any loss occasioned by the foregoing, because Buyer is relying on surveys, elevation analyses, appraisals, inspections, and other analyses conducted only by Buyer’s representatives, in determining the condition, suitability, and value of the Property, or because Buyer has been free to conduct such analyses but has chosen not to do so.
8.Permits. Buyer is solely responsible for determining what, if any, permits, licenses, certificates, and the like (collectively, the “Permits”) are necessary for Buyer’s intended uses of the Property. Buyer is solely responsible for taking all necessary steps to obtain any such Permits that Buyer deems necessary for Buyer’s intended uses of the Property.
9.No Reliance of Buyer on Seller’s Disclosure Notice. Buyer has not relied on any of the information contained in the [select one of the following: Seller’s Disclosure Notice (TAR)/Seller’s Disclosure of Property Condition (TREC Residential)/Commercial Property Condition Statement (TAR Commercial)], if one has been provided in connection with the transaction.
10.Survival. Buyer’s agreements with and representations to Seller made in this disclaimer will survive closing.
11.Construction. When the context requires, singular nouns and pronouns include the plural.
[Name of buyer]
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Include acknowledgment. |