ContractsIntermediateCalifornia Exam

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

AA sale where the seller makes no repairs and the buyer accepts the property in its current conditionCorrect
BA sale that closes immediately without inspections, as typically drafted in a residential purchase agreement
CA sale where the buyer assumes the seller's mortgage, consistent with common contract law principles
DA sale of bank-owned foreclosure property only, per standard contingency and disclosure practice

Why A sale where the seller makes no repairs and the buyer accepts the property in its current condition Is Correct

Answer A: A sale where the seller makes no repairs and the buyer accepts the property in its current condition

An 'as-is' sale means the buyer accepts the property in its current condition. However, the seller is still required to disclose known material defects — 'as-is' does not waive disclosure requirements.

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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