Legal Question in Real Estate Law in California

Re: ''AS IS'' Foreclosure, Can I back out if Problems on Inspection

You would need to have an attorney review the documents. "As is" means just what it says. There's no leeway or buyer's remorse, unless language is included that it's conditional upon certain items okayed by the inspector. I don't think a bank would approve additional language, though.

You might try to put a trigger in the documents that if, say, the inspector finds problems that would cost more than $XXX, you may withdraw from the deal, but again, I don't think the bank would be willing to do so.

Maybe you can have an inspector go in BEFORE you sign the papers. The bank might allow that.

Re: ''AS IS'' Foreclosure, Can I back out if Problems on Inspection

It's generally impossible to give a reliable answer to a contract-interpreation question without reading the contract, or at least having a very detailed synopsis, but I'd feel pretty comfortable in speculating that the bank would regard the contract as final and binding once both parties sign. The privilege of making an inspection is not also a right to rescind the contract of sale. This is not to say the bank would sue for money damages or specific performance if you walked away from the deal, but it probably could, and since you've made a deposit, you risk forfeiting it.

Re: ''AS IS'' Foreclosure, Can I back out if Problems on Inspection

If there is a clause in the contract that says you have a right to inspection, there is often a clause that requires you to give notice within a certian period of time of your intent to exercise a right of rescision, which often is within 17 days of the date you have the right to commence the inspection. In the event you do exercise the right to rescission, you will need to make sure you do it in the precise manner the contract requries you to do so. You should have an attorney review the contract and to advise you how to proceed.