Contracts

In Michigan, which of the following correctly describes an 'as-is' sale clause?

ACompletely eliminates all seller disclosure requirements
BTransfers the risk of physical condition to the buyer, but does not eliminate the seller's duty to disclose known material defects✓ Correct
CAllows the seller to hide all known defects legally
DIs prohibited under Michigan's Seller Disclosure Act

Explanation

In Michigan, an 'as-is' clause indicates the buyer accepts the property's physical condition but does not relieve the seller of the obligation to disclose known material defects under the Seller Disclosure Act. Sellers cannot use 'as-is' to conceal known problems.

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