ContractsIntermediateAlabama Exam

The doctrine of 'caveat emptor' ('let the buyer beware') has been significantly limited in Alabama residential real estate by:

AAREC regulations requiring all inspections, in most cases
BSellers' obligations to disclose known material defectsCorrect
CThe Uniform Commercial Code
DFederal RESPA requirements

Why Sellers' obligations to disclose known material defects Is Correct

Answer B: Sellers' obligations to disclose known material defects

While caveat emptor historically placed the burden of discovery on buyers, Alabama imposes duties on sellers and their agents to disclose known material defects, limiting the application of this doctrine.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

People Also Study

State-Specific Concepts

AREC Regulation

Practice More Alabama Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Alabama Quiz →