One of the first cases of an „As-Is“ provision was in a U.S. Supreme Court case nearly 175 years ago. In the case of Smith v. Richards, the seller of a „gold mine,“ explained to the buyer: „But I sell it for what it is – gold or snowballs – and I`ll let you decide whether you take it at my price or not.“ Of course, the mine had no gold. No snowballs either. In fact, it would appear that the seller was able to provide the buyer with copies of gold – supposed to come out of the mine – to induce the sale. The Court held that the seller was responsible for the fraud, despite the seller`s attempt to as-is clause. Sounds simple and simple? It is not that the courts and Parliament have set certain requirements and conditions for an „as is“ clause, which is the scope of that framework. The complainant was a landowner who granted the respondents an option to purchase. After exercising the opportunity, the defendants found that the complainant had carried out some demolition work and significant additions and modifications of the land without the required building permit. The respondents sought to terminate the contract and sought reimbursement of the bond paid. In Part A of the second calendar of the Promotion and Property Regulations (Chapter 219), there are a number of typical alliances and conditions that can be included by reference to a contract for the sale and purchase of real estate.
The third condition provides that „the buyer acquires with full knowledge of the physical condition of the property and takes it as it is.“ This is also commonly known as the „how is“ condition. If the condition „as expected“ is included in a purchase and sale contract, the buyer is considered to be aware of the material condition of the property and the seller is not responsible for material defects, whether patents or, in some cases, latency, nor to reduce the purchase price of these defects. In general, a buyer who buys a property „as it is“ agrees to make his own assessment of the property and to take the risk that he is wrong. Williams vs. Dardenne, 345 S.W.3d 118, 123-24 (Tex). App.-Houston [1st Dist.] 2011, fart. (citing Prudential, 896 S.W.2d to 161). A buyer who buys real estate „as seen“ decides „entirely on his own destination“ the value and condition of the property, without any insurance from the seller.