ContractsIntermediateCalifornia Exam

An 'as-is' clause in a purchase agreement means the buyer:

AWaives all legal rights to a Transfer Disclosure Statement, as typically drafted in a residential purchase agreement
BCannot conduct a home inspection, consistent with common contract law principles
CAgrees to accept the property in its current condition but does not waive disclosure rightsCorrect
DCannot sue the seller for any defects discovered after closing, per standard contingency and disclosure practice

Why Agrees to accept the property in its current condition but does not waive disclosure rights Is Correct

Answer C: Agrees to accept the property in its current condition but does not waive disclosure rights

In California, an 'as-is' clause means the buyer accepts the property's current condition, but it does NOT waive the seller's duty to disclose known material defects via the Transfer Disclosure Statement (TDS). Sellers must still disclose.

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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