Texas Real Estate Sales Agent ExamProperty DisclosuresHard
A seller lists their property 'as-is,' indicating they will not make any repairs. The Seller's Disclosure Notice reveals several known defects, including a leaky roof and an HVAC system needing replacement. What is the effect of selling 'as-is' on the seller's disclosure obligations in Texas?
- AThe 'as-is' clause only means the seller won't make repairs, but they must still disclose known material defects.
- BThe 'as-is' clause shifts the entire burden of discovery to the buyer, negating disclosure.
- CSelling 'as-is' relieves the seller from the obligation to disclose any known defects.
- DThe seller is only required to disclose latent (hidden) defects when selling 'as-is'.
Show answer & explanationAnswer & explanation
Correct answer: A. The 'as-is' clause only means the seller won't make repairs, but they must still disclose known material defects.
In Texas, selling a property 'as-is' means the buyer accepts the property in its current condition with all defects, visible or not. However, it does NOT relieve the seller of their statutory duty to disclose known material defects. The seller must still complete the Seller's Disclosure Notice truthfully.
Why the other options are wrong
- B. While 'as-is' encourages buyer diligence, it does not allow the seller to conceal known defects or avoid statutory disclosure.
- C. This is a common misconception; 'as-is' does not waive the seller's disclosure obligation.
- D. Sellers must disclose all known material defects, whether patent (obvious) or latent, especially on the disclosure form.
As-Is Sale & Disclosure
In Texas, an 'as-is' sale means the buyer accepts the property in its current condition, but it does NOT relieve the seller of their statutory duty to disclose known material defects.
- Buyer accepts property with all defects.
- Seller must still complete Seller's Disclosure Notice truthfully.
- Does not protect seller from claims of fraudulent misrepresentation or concealment.
- Impacts seller's obligation to make repairs, not to disclose.
Memory trick: As-is, no repairs, but known facts still shared.