Contracts
In Tennessee, an 'as-is' clause in a purchase agreement means:
AThe seller is not required to disclose any defects
BThe buyer accepts the property in its current condition, though the seller may still be liable for fraud or non-disclosure of known material defects✓ Correct
CThe buyer waives all inspection rights
DThe property automatically passes all inspections
Explanation
An as-is clause transfers the risk of unknown defects to the buyer, but it does not relieve the seller of liability for known material defects fraudulently concealed or not disclosed. Tennessee's property disclosure law still applies.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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.
State-Specific Concepts
Disclosure Requirements
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