"AS IS" Is Not Absolute
Attorney in CLE (Continuing Legal Education) said that the "AS IS" clause in the Texas Real Estate Commission One to Four Family Residential Contract means you can not defeat the "AS IS" clause. This is just dead wrong.
There are a number of ways to defeat an "AS IS" clause. First and foremost, "AS IS" is meant to defeat warranty claims and save a seller from making any representations about the thing sold. Here, however, the seller is required BY LAW to provide a Sellers Disclosure Notice. See Texas Property Code Section 5.008. So immediately, there is a conflict which is enough to defeat an "AS IS" defense. Moreover, an limitation of liability has to meet very specific and narrow standards of notice in the contract which this does not. Additionally, the parties must agree to the terms and the term can not be boilerplate - not the case here.
So there are numerous ways to defeat this defense, but unfortunately, attorneys are being taught that they should lay down for the "AS IS" defense. Guess the Texas Real Estate Commission must be overjoyed that lawyers are getting this message.