"As Is Where Is": Unpacking Buyer's Risk in Western Australia Property Contracts

Plain English Definition

"As Is Where Is" means you are buying a property in its current condition, accepting all its existing faults, defects, and issues, whether visible or hidden. When this clause is in a Western Australia property contract, the seller makes no promises or warranties about the property's state, placing the full responsibility for its condition squarely on the buyer. It's a significant clause often found in the REIWA Contract for properties sold in a particular state of repair.

Who This Affects

• Buyers negotiating or exchanging a REIWA Contract who need to know how "As Is Where Is" affects deposit and exit rights.
• Sellers and agents relying on this clause to lock in (or accelerate) a sale in Western Australia.
• Auction or private-treaty purchasers — auction pathways often change whether cooling-off or special conditions still protect you.

The Danger Zone: Buyer's Risk

• Undiscovered Defects You accept all structural, electrical, plumbing, or pest issues that aren't obvious during a pre-purchase inspection. Remediation costs can quickly run into tens of thousands of dollars, e.g., $20,000+ for a significant roof repair or re-wiring.
• Limited Recourse Under Western Australia law and the REIWA Contract, your ability to claim against the seller for defects post-settlement is severely restricted, regardless of how significant the issue.
• No Seller Warranties The seller is explicitly relieved of the usual implied warranties regarding the property's fitness or quality. This is a critical "buyer's risk" to understand.
• Increased Due Diligence You must conduct extremely thorough building and pest inspections before signing, as you cannot rely on the seller disclosing every fault. Failure to do so means you wear the cost.
• Financial Burden Any necessary repairs or upgrades, even for safety or compliance, become your sole financial responsibility immediately upon settlement, potentially impacting your budget for other moving costs or renovations.
• Insurance Implications Insurers may decline cover or increase premiums for known, pre-existing issues that you accepted "As Is Where Is".

What to Check Before Signing

1. Confirm how Undiscovered Defects is handled in your REIWA Contract and diary any related deadline.
2. Confirm how Limited Recourse is handled in your REIWA Contract and diary any related deadline.
3. Confirm how No Seller Warranties is handled in your REIWA Contract and diary any related deadline.
4. Confirm how Increased Due Diligence is handled in your REIWA Contract and diary any related deadline.
5. Confirm how Financial Burden is handled in your REIWA Contract and diary any related deadline.

Key Western Australia Rules

In Western Australia, outcomes for As Is Where Is are driven by the wording of your REIWA Contract together with local conveyancing practice. Do not assume NSW, Queensland, or Victorian default rules apply unchanged. Before exchange, your solicitor or conveyancer should map this clause to any cooling-off rights, disclosure documents, finance or inspection conditions, and default remedies that actually appear in your paperwork.

Real-Life Western Australia Scenario

Daniel, a first-home buyer in Cannington, Perth, was excited to purchase an older investment property advertised at a great price. The REIWA Contract included an "As Is Where Is" clause, which he didn't fully understand. After settlement, he discovered significant rising damp issues and a corroded hot water system, costing him over $12,000 in unexpected repairs. Despite the seller having knowledge of some issues, Daniel had no legal recourse due to the clause. The lesson is clear: always get a comprehensive pre-purchase inspection and understand every clause in your Western Australia property contract, especially "As Is Where Is", to avoid substantial unexpected costs.

Frequently Asked Questions

What does "As Is Where Is" mean for a Western Australia buyer?

"As Is Where Is" means you are buying a property in its current condition, accepting all its existing faults, defects, and issues, whether visible or hidden. When this clause is in a Western Australia property contract, the seller makes no promises or warranties about the property's state, placing the full responsibility for its condition squarely on the buyer. It's a significant clause often found in the REIWA Contract for properties sold in a particular state of repair. In practice, read it together with the surrounding special conditions rather than as an isolated label.

Can "As Is Where Is" put my deposit at risk?

Yes — deposit exposure is one of the main reasons buyers research "As Is Where Is". Limited Recourse: Under Western Australia law and the REIWA Contract, your ability to claim against the seller for defects post-settlement is severely restricted, regardless of how significant the issue. Always confirm the stakeholder arrangements and any termination fee or forfeiture wording with your conveyancer.

What should I check before signing a REIWA Contract with this clause?

Cross-check deadlines, notice methods, and whether the clause survives waiver of other conditions. No Seller Warranties: The seller is explicitly relieved of the usual implied warranties regarding the property's fitness or quality. This is a critical "buyer's risk" to understand.

Does auction change how "As Is Where Is" works in Western Australia?

Auction and private-treaty pathways often differ in Western Australia. If you buy at auction, cooling-off and some special conditions may be unavailable, which can amplify the effect of "As Is Where Is". Get advice before you bid.