Contracts

Which of the following describes an 'as-is' clause in a California residential purchase agreement?

AIt eliminates the seller's obligation to complete any Transfer Disclosure Statement
BIt limits the buyer's right to inspect but does not eliminate the seller's duty to disclose known material facts✓ Correct
CIt means the buyer waives all inspection rights
DIt is prohibited under California law

Explanation

Even with an 'as-is' clause, California sellers must still disclose known material facts about the property. An 'as-is' clause does not eliminate the Transfer Disclosure Statement requirement or the seller's disclosure duties.

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