Contracts
In Michigan, an 'as-is' clause does NOT protect the seller from liability for:
ANormal wear and tear discovered by the buyer after closing
BKnown defects the seller deliberately concealed from the buyer✓ Correct
CDefects the buyer could have discovered through reasonable inspection
DGeneral market value declines after closing
Explanation
An 'as-is' clause does not protect a Michigan seller from liability for fraud or deliberate concealment of known material defects. The clause transfers risk for unknown and patent (obvious) defects to the buyer, but the seller cannot hide known problems behind an as-is clause.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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