ContractsIntermediateCalifornia Exam

What is an 'as-is' sale in California real estate?

AA sale where the seller is completely exempt from all disclosure requirements, consistent with common contract law principles
BA sale where the buyer accepts the property in its current condition, but the seller must still disclose known material defectsCorrect
CA sale that closes in less than 30 days, per standard contingency and disclosure practice
DA sale where the buyer waives the right to a physical inspection, under standard California purchase contract terms

Why A sale where the buyer accepts the property in its current condition, but the seller must still disclose known material defects Is Correct

Answer B: A sale where the buyer accepts the property in its current condition, but the seller must still disclose known material defects

Even in an 'as-is' sale, California law requires sellers to disclose all known material defects via the Transfer Disclosure Statement (TDS) and other required disclosures. 'As-is' means the seller will not make repairs, not that they can conceal known problems.

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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