source:
  type: guide
  id: hud-4000-1-iv-a-property-and-sales-condition
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — a. Property
    and Sales Condition (09/30/2016)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — a. Property
    and Sales Condition (09/30/2016).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-a-property-and-sales-condition-full
  canonical_id: hud-4000-1-iv-a-property-and-sales-condition-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — a. Property
    and Sales Condition (09/30/2016)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — a. Property
      and Sales Condition (09/30/2016)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'a. Property and Sales Condition (09/30/2016) i. As-Is Condition
      (A) Definition As-Is Condition refers to the condition of a Property without
      repairs, representations, or warranties. (B) Standard HUD markets Properties
      under the following categories, based on the as-is condition of the Property
      at the time of listing as determined by one or more evaluation tools, such as
      an appraisal, Broker’s Price Opinion (BPO), or Automated Valuation Model (AVM):
      • insurable; • insurable with repair escrow; or • uninsurable. ii. Vacant Lots
      (A) Definition A Vacant Lot is a Property without improvements or Structures.
      (B) Standard HUD may raze Structures or offer the vacant lot for sale where
      Properties are so damaged that repair by HUD or the buyer is not feasible and
      where one of the following conditions exist: • the Property has already been
      unsuccessfully offered for sale in its as-is condition; • a local ordinance
      or agreement prohibits as-is sales of such Properties; or • the Structure must
      immediately be razed by HUD to remove a serious public hazard. IV. CLAIMS AND
      DISPOSITION B. Title II Disposition 2. REO Property Disposition Handbook 4000.1
      1631 Last Revised: 11/26/2025 Where there is no immediate need to raze the Property
      or where it would be otherwise inappropriate to sell the Property as-is, HUD
      may sell the Property with the requirement that the buyer raze the Structure
      after sales closing. iii. Held Off Market (A) Definition Held Off Market is
      the status of a HUD REO Property that is unavailable for sale. (B) Standard
      HUD may designate a Property as held off market when a property, title, occupancy,
      or other condition delays or prohibits HUD’s ability to market or sell the Property.
      Should the adverse condition be resolved, HUD may then list the Property for
      sale.'
  judgment: false
