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Tennessee law regarding 'as-is' sales:

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Question & Answer

Review the question and all answer choices

A

Eliminates all seller obligations

A is incorrect because 'as-is' does not eliminate all seller obligations. The most important remaining obligation is the duty to disclose known material defects, which is a fundamental protection for buyers in real estate transactions.

B

Does not eliminate duty to disclose known material defects

Correct Answer
C

Is prohibited

C is incorrect because 'as-is' sales are not prohibited in Tennessee. They are a common marketing approach, but they still operate within the legal framework that requires disclosure of known material defects.

D

Only applies to commercial property

D is incorrect because the disclosure requirement for 'as-is' sales applies to both residential and commercial property in Tennessee. The duty to disclose known material defects is not limited by property type.

Why is this correct?

Answer B is correct because Tennessee law requires sellers to disclose known material defects even in 'as-is' sales. 'As-is' primarily affects the buyer's ability to seek repairs after closing, not the seller's duty to disclose known issues.

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