As a buyer’s agent in Amsterdam, I work daily with the Amsterdam Model Purchase Agreement, a standard contract used in the city for residential property transactions. This model is drafted by a notary and ensures legal security for both the buyer and the seller. Within this contract, clauses can be included to further specify the rights and obligations of both parties. Today, I want to discuss the ‘As Is, Where Is’ clause and its implications for buyers.

What Is the ‘As Is, Where Is’ Clause?

The ‘As Is, Where Is’ clause means that the property is sold in its current condition at the time of sale. This means the seller offers no guarantees regarding the state of the property. The buyer accepts the property as it is, including any visible and hidden defects that may exist but were not noticed during the viewing.

Sellers often use this clause to exclude liability for future defects. However, it does present risks for buyers. For instance, it means that the buyer accepts the property without any claims for repairs if defects surface after the purchase. While the ‘As Is, Where Is’ clause is not necessarily a dealbreaker, it is a clause that should be taken seriously.

The Implications of the ‘As Is, Where Is’ Clause

While this clause protects the seller from liability for defects, it does not mean that the buyer must accept everything without question. There are important legal nuances to consider. The seller can still be held liable for hidden defects they knew about or should have known about but failed to disclose to the buyer. This falls under the duty of disclosure, which is outlined in Article 3 of the Amsterdam Model Purchase Agreement.

The duty of disclosure means that the seller is obligated to report anything that could impact the property’s value or usability, which the buyer would not reasonably be able to discover on their own. If the seller is aware of defects, such as foundation issues or hidden damage, and does not disclose them, the buyer may still have grounds for compensation or repairs, even if the property was sold ‘As Is.’

The Importance of a Thorough Inspection

As a buyer, it is crucial to always conduct a structural inspection before purchasing a property, especially when an ‘As Is, Where Is’ clause is included in the contract. A professional inspection can help identify hidden defects that are not immediately visible, preventing unpleasant surprises after the purchase.

Conclusion

The ‘As Is, Where Is’ clause benefits the seller but can pose risks for the buyer. It is essential to fully understand this clause and ensure a thorough inspection of the property before committing to a purchase. Buyers should remain critical and ask the right questions. The duty of disclosure, as outlined in Article 3 of the Amsterdam Model Purchase Agreement, provides protection against undisclosed hidden defects.

Would you like more information about buying a home in Amsterdam? Feel free to email info@burgemeestervastgoed.nl