ContractsIntermediateArizona Exam

An 'as-is' clause in an Arizona purchase contract means:

AThe buyer permanently waives all rights to conduct property inspections and accepts the property in its current condition without any right to request repairs or cancel
BThe seller makes no representations about the property's condition but disclosure obligations still applyCorrect
CThe seller is legally exempt from completing the SPDS and need not disclose any known material defects, since the as-is clause transfers all disclosure risk to the buyer
DThe buyer unconditionally accepts the property with both known and unknown defects and waives all inspection rights, claims, and remedies arising from the property's condition

Why The seller makes no representations about the property's condition but disclosure obligations still apply Is Correct

Answer B: The seller makes no representations about the property's condition but disclosure obligations still apply

An 'as-is' clause means the buyer accepts the property in its current condition, but in Arizona the seller's disclosure obligations still apply. The seller cannot use 'as-is' to avoid disclosing known material defects.

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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