ContractsIntermediateArizona Exam

A buyer is purchasing an Arizona home and signs an 'AS-IS Addendum.' This means:

AThe seller has no obligation to make any repairs and the buyer completely waives all inspection rights, accepting the property with no recourse for any discovered defects
BThe buyer accepts the property in its current condition but retains the right to inspect and cancel based on inspection resultsCorrect
CThe seller warrants that all major systems including plumbing, electrical, HVAC, and roof are in working order at the time of the as-is agreement's execution
DThe listing price is non-negotiable and the buyer waives any right to request a price reduction, repair credit, or price adjustment based on the findings of any inspections

Why The buyer accepts the property in its current condition but retains the right to inspect and cancel based on inspection results Is Correct

Answer B: The buyer accepts the property in its current condition but retains the right to inspect and cancel based on inspection results

An AS-IS addendum means the buyer agrees to accept the property in its current condition and the seller will make no repairs. However, the buyer retains the right to conduct inspections and may still cancel the contract during the inspection period based on findings.

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.

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