Buying a Home "As Is" in NJ: What It Does and Doesn't Mean

The short answer: In a New Jersey home sale, "as is" generally means the seller won't make repairs or give credits for the property's condition. It doesn't mean the seller can skip the disclosure statement, and it doesn't excuse hiding known defects. Residential sellers still owe the state's disclosure form (P.L.2024, c.32, s.2.e). Agents still must disclose material information about physical condition (N.J.A.C. 11:5-6.4(c)). And New Jersey's Supreme Court let buyers pursue a concealment claim despite a contract saying they were "fully satisfied" with the condition (Weintraub v. Krobatsch, 64 N.J. 445 (1974)).

This is general information, not legal advice. The exact effect of an "as is" clause depends on the contract's wording, which is what attorney review is for.

What does "as is" actually change?

"As is" is a contract term, not a legal category with one fixed definition. In practice it signals that the seller:

  • won't fix items found in an inspection,
  • won't offer credits for the property's condition, and
  • is pricing the home with its condition in mind.

That shifts the negotiation. Normally a buyer who finds problems can ask for repairs or a credit (our guide to seller concessions vs price reductions explains the difference). In an "as is" deal, the seller has said up front that the answer will likely be no. What the clause covers, and whether the buyer can still walk away after an inspection, depends on how the contract is written.

Does an "as is" sale skip the seller disclosure statement?

No. When a brokerage firm represents the seller in a residential transaction, it must obtain the property condition disclosure statement filled in and signed by the seller. A seller without a brokerage firm, or working with a transaction broker, must give the statement to the buyer before the buyer is obligated under a contract (P.L.2024, c.32, s.2.e). The Division of Consumer Affairs says questions 1 through 108 are mandatory for all residential sellers (DCA instructions). Neither source lists an exception for "as is" sales. Our seller disclosure guide walks through the whole form.

Two features of the form help explain why "as is" and disclosure coexist (the form):

  • The seller answers to the best of their knowledge, and the statement "is not a warranty" of the property's condition. The buyer acknowledges that it's their responsibility to satisfy themselves about the condition.
  • An executor, administrator or trustee who never lived in the home can sign a statement saying they lack the personal knowledge to complete it.

So the form discloses what the seller knows, and "as is" tells the buyer the seller won't fix it.

Can a seller hide a known defect in an "as is" sale?

New Jersey's courts have said no. In Weintraub v. Krobatsch, the buyers' contract said they had inspected the house, were fully satisfied with its physical condition, and that the seller assumed no responsibility for its condition. Before closing, they found a severe roach infestation they said the seller knew about and hid. The Supreme Court ruled they were entitled to a trial on whether the seller deliberately concealed a latent condition they couldn't see on inspection (64 N.J. 445 (1974)).

The court cited decisions from other states holding that "present condition" and "as is" language doesn't bar a claim based on the seller's fraud. It also noted that minor conditions ordinary buyers and sellers would disregard don't justify court intervention.

Do agents still have disclosure duties on an "as is" listing?

Yes. The 2024 law requires a brokerage firm to disclose material information about a property's physical condition that its licensees know, or that a reasonable effort would have revealed (s.2.f). The Real Estate Commission's rule says a reasonable effort includes at least asking the seller about physical conditions and visually inspecting for readily observable ones (N.J.A.C. 11:5-6.4(b)). Licensees aren't held to a licensed home inspector's standard (s.2.j).

Writing "as is" in the listing doesn't switch any of that off. What it can do is set expectations, so buyers price in repairs before they offer.

Can the buyer still get a home inspection?

Usually, if the contract allows it. An inspection still tells you what you're buying, even if you don't expect repairs. Whether the buyer can cancel based on the results depends on the inspection contingency and its deadline (our contingencies guide). The seller's disclosure form itself tells buyers the property may be inspected by qualified professionals at the buyer's expense (the form).

Can a lender still require repairs on an "as is" house?

Yes. The seller's "as is" stance doesn't bind the buyer's lender. Under Fannie Mae's guidelines, an appraisal can be completed "as is" when existing conditions are minor and don't affect safety, soundness or structural integrity. But if the appraiser rates the property C6, meaning deficiencies severe enough to affect safety, soundness or structural integrity, the appraisal must be completed "subject to" repairs (Fannie Mae Selling Guide B4-1.3-06). Other loan programs have their own property standards, so buyers should ask their lender early.

How should buyers and sellers approach an "as is" deal?

Our suggestions:

  • Sellers: Fill out the disclosure form completely and honestly. "As is" pairs well with transparency; it doesn't replace it.
  • Buyers: Read the disclosure form, inspect within your contingency period, and budget for repairs before you set your offer.
  • Both sides: Have the attorney spell out in the contract what "as is" covers during attorney review.
  • Agents: Keep notes of what you asked the seller and what you observed. Point legal questions to the attorneys.

Understanding where contract language stops and disclosure law starts is core licensing material. Business Elementary's 75-hour course is one place to learn it.

Sources

Last reviewed: November 1, 2026

Frequently Asked Questions

Does "as is" mean I can't back out after the inspection?

Not necessarily. It depends on whether your contract has an inspection contingency and what it says. Some "as is" contracts keep the buyer's right to cancel within the inspection period; others don't. Ask your attorney during attorney review.

Do estates selling a house "as is" fill out the disclosure form?

An executor, administrator or trustee who never occupied the property can sign the form's statement that they lack the personal knowledge to complete it (the form).

Does an "as is" clause protect the seller from every claim?

No. In Weintraub v. Krobatsch, the NJ Supreme Court allowed buyers to pursue a claim that the seller concealed a known, hidden defect despite a contract disclaiming responsibility for the home's condition (64 N.J. 445).

Will my mortgage lender accept an "as is" house?

It depends on the condition. Fannie Mae allows "as is" appraisals for minor issues, but serious safety or structural deficiencies (a C6 rating) require repairs first (B4-1.3-06).