Buyer Guide
What “As Is, Where Is”
Really Means.
Read the Schedule First.
On an as is where is power of sale, the lender crosses out most of the promises a normal seller makes. Here’s what goes missing from the offer, what replaces it, and the questions to ask before you sign.
Sean Baker
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Buyer Guide
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7 min read
In Ontario, most home sales use a standard Agreement of Purchase and Sale (APS). It has promises from the seller built in. Clear title. Chattels free of debt. No known problems they’re hiding.
In a power of sale, the lender is the seller. It has never lived in the home. So it strikes out most of those promises and adds its own schedule. Every lender’s schedule is a little different. But the pattern is the same.
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📝 What Lenders Strike From an As Is, Where Is Power of Sale
Chattels and fixtures
The lender won’t promise the appliances are included, working or paid off. Some schedules even say the chattels aren’t part of the price.
If the fridge was bought on a payment plan, someone else may still have a claim on it. Your lawyer can search for that.
Rental items
The lender doesn’t know what’s rented. Check the hot water tank, furnace and water softener for a rental sticker. If it’s rented, you take over the contract.
Title and work orders
In a normal sale, you can ask the seller to fix title problems or open work orders before closing. Lenders usually strike that out. You take the property with any work orders, encroachments or special assessments.
The good news: the lender clears off its own mortgage and anything registered after it. So the debts mostly go away. The building issues don’t.
Utilities and adjustments
Many schedules say there’s no adjustment for water, sewer or other levies. If the owner fell behind, ask your lawyer if any of that could follow the property to you.
Non-resident status
Normally the seller confirms they’re a Canadian resident. A lender can’t confirm that about the owner. If the owner was a non-resident, there can be tax holdback issues. Your lawyer will know how to handle it.
Family law and insulation clauses
Spousal consent and the urea formaldehyde foam insulation (UFFI) warranty are usually struck. The lender simply doesn’t know.
📄 What the Lender’s Schedule Adds
At a Glance: Common Lender Terms
Condition
Sold as is, where is. No warranties
Standard
Closing
Lender may extend closing date
60 to 90 days
Redemption
Owner can pay off and stop the sale before closing
Rare
Conditions
Few or none allowed
Varies
Deposit
Certified cheque or bank draft
Common
For condos, the lender won’t promise anything about the condo corporation either. You’ll rely on the status certificate. Ask for a condition to review it, and have your lawyer read it closely.
❓ Questions to Ask Before You Sign
1. Can I see the lender’s schedule now, before I write?
2. Will the lender accept an inspection, financing or status certificate condition?
3. How long can the lender extend the closing?
4. Is anyone living in the home? Tenant, boarder or empty?
5. What searches will my lawyer run before I firm up?
For the full step-by-step list, see my checklist for buying a power of sale. For how the whole process works, see the power of sale buyer’s guide. The rules behind it come from Ontario’s Mortgages Act.
🏁 The Bottom Line
As is, where is on a power of sale means the risk moves from the seller to you. That’s not a reason to walk away. It’s a reason to read the schedule early, ask good questions, and have a lawyer who does these often.
This post is general information, not legal or financial advice. Every situation is different. Speak with a real estate lawyer before you sign anything.
🧭 Quick FAQ
What does as is, where is mean?
It means the seller makes no promises about the property’s condition. You buy it the way it is, including any problems.
Why do lenders sell as is, where is?
The lender has never lived in the home and knows little about it. So it won’t make promises it can’t stand behind.
Are the appliances included in a power of sale?
Not always. Some lender schedules say chattels aren’t included in the price. Read the schedule and ask your lawyer.
Can the lender delay my closing?
Many lender schedules allow them to extend the closing date, often by 60 to 90 days.
Do I still need a lawyer if the paperwork is standard?
Yes. In a power of sale, your lawyer’s searches replace many of the promises a normal seller would make.
Buyer Guide
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