My client used the Texas REALTORS® form Commercial Contract—Improved Property (TXR 1801) to make an offer on a property. The seller rejected the offer. The seller’s agent said that because the seller was selling the property “as is” and was not going to do any repairs, my buyer-client’s request for a feasibility period was not necessary. Does my buyer really have to forego a feasibility period simply because the seller says he won’t make any repairs regardless of what an inspection turns up?

NO. When using the Texas REALTORS® Commercial Contract—Improved Property, all buyers purchase property in its present condition, or “as is,” at the time of contract execution except when specific repairs are listed in Paragraph 7A.

Even if the buyer’s offer lists no repairs in Paragraph 7A, that does not automatically prevent the buyer from securing a right to inspect the property and possibly terminate the contract under the terms of Paragraph 7B, the Feasibility Period Paragraph.

While a seller could refuse to sign a contract that permits a buyer to have inspections and a right to terminate under a feasibility period, the seller should carefully consider such a decision. Forcing a buyer to waive these rights might increase the seller’s risk of a subsequent claim of withholding information about the condition of the property. Furthermore, some buyers may be reluctant to buy a property without a right to inspect the property and terminate the contract if not satisfied that the property meets their expectations. One additional point worth noting is that granting the buyer’s feasibility period does not obligate the seller to do any repairs.

You can bring up these points with the seller’s agent to see if the seller will reconsider and allow your client to resubmit the offer with a feasibility period.