Did you know that offers made on a standard California Residential Purchase Agreement (RPA) contain verbiage that states that the property is sold “AS-IS”? 


That’s right!  And here is the section of the RPA that states that:


11. CONDITION OF PROPERTY: Unless otherwise agreed in writing: (i) the Property is sold (a) “AS-IS” in its PRESENT physical condition as of the date of Acceptance and (b) subject to Buyer’s Investigation rights; (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance; and (iii) all debris and personal property not included in the sale shall be removed by Close of Escrow.

If you’re a Seller, that can save some money and hassle, but sometimes it may be necessary to do something such as negotiating to do certain repairs or providing a credit at the close of escrow for the Buyer to fix to save the deal from falling apart.


  1. In certain instances, a Buyer’s lender has some conditions that must be met in order for the Buyer to qualify to buy the home. Government backed loans such as FHA and VA will stipulate that peeling paint, dry rot, and items like uncovered electrical outlets must be fixed in order for the lender to approve the loan. The items are generally under the category of structural, health, and safety.  (Note: the above is NOT a comprehensive list).
  2. Sometimes in an act of good faith in order to keep a Buyer from cancelling the contract during the contingency inspection period, the Seller may opt to fix some items to “keep the deal together”.


Short-Sales and REO (Real Estate Owned) are mostly sold “AS-IS”, but oftentimes other regular listings will state unequivocally, up front that no repairs will be done or credits offered. 

If you’re the Buyer and notice anything remiss, then BEFORE you put in an offer is a good time to have your agent determine if the Sellers would be open to fixing anything. Also, understand that there are different types of markets.  In a hot Sellers Market as we’re in now, don’t expect a “deal” by finding everything wrong with the property in order to pay less.  Leave that to when the market turns and there’s more houses than Buyers.  It never hurts to ask for repairs or credits.  I’ve seen many sellers fix everything on a list all the way to fixing nothing at all. 


The Buyer’s Investigative rights (as referenced in the contract paragraph above) are to conduct, at Buyer’s own expense, any inspections, tests, surveys etc.  Inspections are meant to call out major issues or reasons why you should reconsider buying a property that you aren’t buying to wholly rehab.  Understand too that every house needs repairs because there is no perfect house.

Know that, generally speaking, a house is priced according to its condition.  The more things wrong with it, the more likely you’ll be able to negotiate a lower price, a credit, or repairs.  Different tastes in paint color, granite, or carpet may not translate to a credit or drop in price.  In buying a home, there will always be tradeoffs. 


The California RPA like all contracts are meant to protect both Buyers and Sellers as is a licensed Real Estate Agent.  In this post, I’ve tried to call out some general guidelines but there are many variations.  If you have questions, I’d be happy to answer them…call or text me 916-293-1734.