Tennessee law regarding 'as-is' sales:
Question & Answer
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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.
Does not eliminate duty to disclose known material defects
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.
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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