The vast majority of yacht brokers and salespersons in California use the standardized California Yacht Brokers Association Purchase Agreement. Paragraph 11 of that Agreement states as follows:
Except as stated in paragraph 9, the Vessel is sold “AS IS,” “WHERE IS,” and “WITH ALL FAULTS,” neither seller, broker, nor any cooperating broker, nor any of their respective owners, partners, shareholders, officers, directors, brokers, salespersons, employees, representatives, agents, attorneys, or contractors, make any representation or warranty, either express or implied, pertaining to the vessel, its condition, description, merchantability or fitness for a particular purpose, and all such representations and warranties are disclaimed.
Paragraph 9 simply deals with clear title so it is understandably exempted from paragraph 11. There is, however, a great deal of misunderstanding as to the terms “AS IS,” “WHERE IS,” and “WITH ALL FAULTS.” What do these terms mean?
While some have misunderstood these terms to mean that the seller will not negotiate and the buyer will have to accept the vessel regardless of what the surveyor and mechanical inspector may find, or that the seller will not negotiate a repair allowance after the Sea Trial, nothing could be further from the truth.
It is true that in real estate, an as-is property is one that is listed for sale in its current state, meaning that any issues or problems with the home will not be addressed by the seller. When a property is listed “as-is”, it means the seller won’t entertain any such requests. In the maritime world, however, the terms are applied a bit differently.