What an 'As Is, Where Is' Clause Means for Victorian Buyers

An 'as is, where is' clause generally tries to make you accept the property in its present state and rely on your own inspections, but its effect depends on the complete wording and the rest of the contract. It cannot contract out of Victoria's Section 32 disclosure scheme or permit a vendor or agent to knowingly conceal a material fact. Have the contract and Section 32 reviewed before you sign or bid, especially because auction purchases have no cooling-off period.

What does 'as is, where is' mean in a Victorian property contract?

The clause usually means the vendor wants you to take the property as it stands, with limited promises about repairs, condition or compliance. It may also say you relied on your own inspections rather than comments made during the sales campaign. The legal effect sits in every sentence that follows.

A narrow clause may cover visible defects and ordinary wear. A broader condition may reach hidden problems, services, boundaries, missing permits, unapproved work, compliance or compensation rights. It may also override parts of the standard general conditions.

Picture an older weatherboard in Reservoir with sloping floors, a homemade shed and fresh paint after a wet Melbourne winter. One clause may confirm that the vendor won't repair those visible issues. Another may shift the risk of missing approvals and defects you could not reasonably see. Your conveyancer needs to read the condition with the full contract and Section 32.

Does an 'as is' clause mean the vendor has to fix nothing?

The vendor is often saying they won't repair problems that existed when the property was sold. That might include cracked paving, a tired hot water service, a broken shed latch, worn carpet or an appliance that did not work at the inspection.

It does not automatically allow the property to deteriorate before settlement. The usual Victorian contract position is that it must be handed over in the same condition as when sold, apart from fair wear and tear. A special condition may alter that position.

This is why inclusions and promises must be written into the contract. List anything that must remain, and record any agreement about rubbish removal, repairs or working order. A casual assurance from the agent during a crowded Saturday inspection is not the same as a contractual obligation.

What rights cannot an 'as is, where is' clause remove?

An 'as is' clause cannot simply erase the vendor's statutory disclosure obligations. Under the Sale of Land Act 1962 (Vic), the vendor must provide a signed Section 32 statement before the purchaser signs the contract, and section 32N makes void a contract term that excludes, modifies or restricts that disclosure division.

If required information is missing, false or supplied too late, section 32K may give a purchaser a right to rescind before accepting title. The result depends on the facts, timing and any statutory defence available to the vendor. A sweeping special condition is not a substitute for proper disclosure.

The clause also does not allow a vendor or agent to knowingly conceal a material fact to induce a sale. Depending on the circumstances, that may include known structural trouble, contamination, serious flooding history or building work without required approval. Our guide to material facts a seller must disclose explains this duty.

A Section 32 is not a building report. It mainly covers legal, title and authority information, not whether the roof leaks, the stumps are sound or the wiring is ageing. Our guide to what a Section 32 does not have to tell you explains why legal review and physical inspection are separate jobs.

Why do Victorian vendors use 'as is' clauses?

These clauses are often used when the vendor has limited first-hand knowledge of the property or does not want to make promises about its condition. Mortgagee sales and deceased estates are common examples because the lender, executor or administrator may never have lived in the home.

They also appear where a property needs work, records are incomplete or the vendor wants fewer arguments about defects after signing. The clause is not proof that a catastrophe is hiding behind the plaster, but it is a reason to slow down and identify the risk being shifted.

In our practice, we've seen buyers focus on peeling paint and the words 'as is' while overlooking a longer waiver about permits, services or compensation. The most serious part of the clause is often not the visible wear that first caught the buyer's attention. It is the legal risk buried in the next paragraph.

Ask the agent why it has been included, but have your conveyancer check what the words actually do.

What should you check before signing an 'as is' contract?

Start with the special condition, then match it against the property, the Section 32 and every promise made during the campaign. A useful pre-signing check covers seven areas:

The exact reach of the clause. Does it deal only with visible condition, or does it extend to hidden defects, permits, services, boundaries, fittings, compliance and compensation rights?
The Section 32 and title. Check easements, covenants, owners corporation records, notices, recent building permits and the plan against what you saw at the property.
An independent building and pest inspection. Your conveyancer checks the legal papers. A suitably qualified inspector checks the physical condition. One cannot replace the other.
Written questions. Ask about leaks, flooding, termites, mould, insurance claims, unapproved work and known defects. Keep the replies and explain when a particular issue matters to your decision.
Inclusions and agreed work. Record appliances, fixtures, rubbish removal, repairs and any promise about working order in the contract.
Protective conditions. In a private sale, consider finance, building and pest inspection, or another suitable due diligence condition before signing.
Your repair allowance. If the vendor will not change the clause, decide whether the price leaves enough room for the risk and work you are taking on.

Do not treat cooling off as your inspection period. Three clear business days can disappear while you are arranging finance, finding an inspector and seeking advice. There are also important exclusions. The normal cooling-off period in Victoria does not apply to a purchase at a publicly advertised auction or within three clear business days before or after that auction.

Can you negotiate an 'as is, where is' clause before signing?

Yes. In a private sale, you can ask for the clause to be deleted, narrowed or balanced with a specific protection. The vendor does not have to agree, so raise the request before you sign while you still have a genuine choice.

A buyer might limit acceptance to defects identified in writing, preserve rights where disclosures are wrong, require listed appliances to work at settlement or include a properly drafted building inspection clause in a Victorian contract. Avoid copying wording from another purchase. Small differences can change the deadline, report requirements and remedy.

Auction timing is different. By bidding, you accept the displayed contract, and the purchase is usually unconditional when the hammer falls. Any amendment must be agreed before auction day.

What should you check at the final inspection?

The final inspection lets you compare the property with its condition on the day of sale. It is not a fresh chance to object to every defect you accepted when signing.

Victorian buyers are entitled to inspect at a reasonable time during the week before settlement. Check that inclusions remain, no new damage has appeared and promised work is complete. Our guide to the final inspection before settlement sets out what to take and test.

An old crack that was visible before signing may sit with you under the contract. A newly broken window, missing dishwasher or room damaged during the vendor's move raises a different issue. Take dated photographs and contact your conveyancer promptly, rather than trying to negotiate directly at the front door on settlement morning.

Your conveyancer can compare the evidence with the contract and address the issue before settlement proceeds.

Is buying a property 'as is, where is' always a bad idea?

No. It can be sensible when the risks are understood, inspections are complete and the price reflects the work ahead. Plenty of Melbourne buyers knowingly choose a renovator and budget for repairs.

The danger is accepting risks you have not investigated or priced. A CBD apartment, a deceased estate in Preston and a Coburg renovator can carry very different concerns even when the same phrase appears in each contract. Pause if the vendor will not allow a reasonable inspection or is pressing you to sign before advice. Ask, 'What does this clause make me accept in this contract?'

Frequently asked questions

Does 'as is, where is' mean the vendor can hide defects?

No. An 'as is, where is' clause does not permit a vendor or agent to knowingly conceal a material fact. It may still place the burden on the buyer to find physical problems that are not disclosed in the Section 32, so independent inspections and written questions remain essential.

Can an 'as is, where is' clause override the Section 32?

No. Section 32N of the Sale of Land Act 1962 (Vic) makes void a contract term that excludes, modifies or restricts the Section 32 disclosure division. A buyer's right to rescind under section 32K depends on the defect, the timing and the circumstances of the transaction.

Can I make an 'as is' purchase subject to a building inspection?

Yes, you can ask for a building and pest inspection condition in a private sale, and the vendor may accept or reject it. The wording, inspector requirements and deadline matter, so arrange the condition before signing and book the inspection promptly.

Do I get a cooling-off period after signing?

Most private sales of Victorian residential property have a cooling-off period of three clear business days, subject to statutory exclusions. There is no cooling off for a purchase at a publicly advertised auction or within three clear business days before or after that auction.

Can I ask the vendor to narrow the clause?

Yes, before a private sale contract is signed. You may ask to limit the clause to named defects, preserve written promises or add an inspection condition, but the vendor does not have to agree. Any auction amendment should be agreed before you bid.

What if the property is damaged before settlement?

An 'as is' clause usually deals with the property's condition at the time of sale, but the complete contract must be checked. A Victorian buyer can inspect during the week before settlement and should report new damage or missing inclusions to their conveyancer straight away.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing is a Melbourne-focused team helping residential buyers, sellers and property owners across Victoria. We review contracts and Section 32 statements, check title issues and guide matters through settlement. Explaining vendor-drafted conditions and negotiating buyer protections before signing is part of our day-to-day conveyancing work.

Sources we consulted

Get the clause checked before you commit

If an 'as is, where is' condition appears in the contract for a home you are considering, send the contract and Section 32 to Pearson Chambers Conveyancing before you sign or bid. Our complimentary contract and Section 32 review can explain what the clause changes, flag the checks still needed and help you decide what to ask for.

Email: contact@pearsonchambers.com.au

General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.