In Arizona real estate contracts, what is the purpose of an 'as-is' clause?
Correct Answer
B) To shift responsibility for property condition to the buyer
Correct: An 'as-is' clause transfers responsibility for the property's condition from seller to buyer, meaning buyer accepts the property in its current state. Why not A: As-is clauses specifically avoid requiring seller repairs. Why not C: As-is clauses make no guarantees about property condition. Why not D: Buyers can still inspect; they just accept the condition found.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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Previous Question
A buyer in Phoenix submits an offer on a home with a contingency clause stating the purchase is subject to obtaining financing within 30 days. On day 25, the buyer's lender denies the loan application. What must the buyer do to properly exercise this contingency under Arizona law?
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While reviewing a transaction in Yuma County, a buyer claims there is a binding purchase contract for a townhouse based solely on an unrecorded oral promise. What should the parties assume under current Arizona rules?