A:

While the binder agreement says AS IS, the parties understanding of its meaning is different and must be confirmed by the contract of sale.  A buyer expects AS IS to mean that the house is in proper working order.  When buying a residential property unless the home is marketed as a Fixer-upper most buyers expect AS IS to mean in proper working order.  The home’s major systems- plumbing heating, electric, roof and appliances should be in proper condition otherwise the buyer will expect a repair or a reduction in purchase price.

GOOD PRACTICE TIP – If the seller is aware of issues with the condition of the home he should make sure his realtor makes a buyer aware of them BEFORE the binder is signed by the buyer.  This will put the buyer on notice and avoid haggling over repairing items which the buyer and seller have already factored into the sales price.