What Does "As-Is" Mean in a Builder Contract?

An "as-is" clause means the builder is selling the home in its current condition with no obligation to make repairs or improvements. In new construction, this clause limits your ability to demand fixes for defects found at closing.

The Short Answer

In a resale transaction, "as-is" is common — you are buying an existing home with known wear and tear. But in new construction, an "as-is" clause is more concerning because you are paying for a brand-new home that should be built to code and free of defects.

An "as-is" clause in a builder contract may attempt to shift the risk of construction defects from the builder to you.

How It Appears in Builder Contracts

You may see language like "Buyer accepts the Home in its present condition" or "The Home is sold AS-IS, WHERE-IS." Some contracts include this language alongside a limited express warranty, which can create confusion about what the builder is actually responsible for.

The clause may be in the main purchase agreement or buried in addenda or rider documents.

What It Means for You

If enforced, an as-is clause could mean the builder has no obligation to fix issues you discover at the final walkthrough (beyond what the express warranty covers).

It may also limit your ability to make legal claims about the home's condition at the time of sale.

In some states, an as-is clause in new construction may not be fully enforceable — especially if the state recognizes an implied warranty of habitability that cannot be waived.

How to Protect Yourself

Hire an independent home inspector before closing, even though the home is new construction.

Document everything during your walkthroughs — take photos and videos.

Understand what your builder's express warranty does and does not cover.

Ask your attorney whether an as-is clause in new construction is enforceable in your state.

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