AS IS refers to a condition under which a property is sold or leased indicating that it will be accepted in its current state with no guarantees or warranties regarding its condition. Buyers or tenants agree to accept the property with all visible and latent defects.
'Caveat Emptor,' a Latin phrase meaning 'let the buyer beware,' is a fundamental principle in real estate transactions. It emphasizes the responsibility of buyers to thoroughly inspect and review the property themselves, utilizing due diligence, except for latent defects, which are hidden or concealed defects not immediately detectable during an inspection.
Latent defects are hidden flaws in a property that are not apparent at the time of purchase or during an initial inspection but may reveal themselves later, often causing significant issues.
