“Sold as Is and Where Is” in Auctions: What Buyers Need to Know
What Does “Sold as Is and Where Is” Mean
“Sold as is and where is” means the seller provides no warranties regarding the asset’s condition, and the buyer accepts the property in its existing state at the time of auction, including its physical condition and location.
This condition is a global auction standard designed to clarify liability and reduce post-sale disputes.
“As-Is, Where-Is” is a globally recognized auction standard commonly applied in court auctions, bank auctions, and institutional asset disposals.
It means the seller provides no warranties regarding the condition or quality of the asset, and the buyer accepts the property in its existing condition and location at the time of sale.
Why Auctions Use the As-Is Condition
This condition is applied to:
Limit the seller’s responsibility
Clearly define transaction terms
Ensure prices reflect actual asset conditions
Require buyers to independently assess risks and value
Risks Buyers Should Consider
Bidders should be aware of risks such as:
Structural deterioration or damage
Additional repair and renovation costs
Encumbrances or third-party rights
Delays in possession or handover
Failing to account for these risks may result in higher-than-expected total costs.
Preparing Before Bidding on As-Is Assets
Buyers should:
Carefully review title documents and auction conditions
Inspect the property where possible
Calculate total costs, including risk allowances
Factor uncertainties into bidding decisions
FAQ: As-Is and Where-Is Auction Sales
Q: Can buyers request repairs from the seller?
A: No. Buyers must accept the asset in its existing condition.
Q: Can buyers claim compensation after discovering issues post-sale?
A: Generally no, which is why thorough due diligence is critical.
Q: Does the as-is condition affect auction prices?
A: Yes. Buyers typically factor risk and repair costs into their bids.
