Contracts
An 'as-is' clause in a Georgia real estate contract means:
AThe seller has no duty to disclose any known defects
BThe buyer accepts the property in its current condition but the seller must still disclose known material defects✓ Correct
CThe property requires no inspection
DThe buyer waives all legal rights against the seller
Explanation
An 'as-is' clause means the buyer accepts the current condition, but it does not excuse the seller from disclosing known material defects. The seller cannot use 'as-is' as a shield for active concealment or fraud.
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Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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