Question 16

Seller Sadie is obligated to disclose known material facts to the buyer.

Listing a home 'as is' does not absolve the seller from the responsibility of disclosing any known material facts about the property. Sadie must still inform potential buyers about any significant issues or defects that could affect their decision.

A) Nothing; 'as is' means she is no longer obligated to disclose known material facts to the buyer.

This option is incorrect because even when a property is sold 'as is,' sellers are still legally required to disclose known material defects. Failing to do so could lead to legal repercussions and claims of fraud.

B) to disclose known material facts to the buyer

This option is correct since sellers are required to inform buyers of any known issues that could materially affect the property's value or safety. 'As is' does not negate this obligation.

C) to add an inspection contingency for the buyer

This option is incorrect as there is no legal requirement for sellers to include an inspection contingency when selling a home 'as is.' Buyers can request inspections, but it is ultimately their decision to include this in the offer.

D) to lower the purchase price since she's listing it 'as is'

This option is incorrect because there is no obligation for the seller to reduce the price solely based on the 'as is' status of the property. Pricing is typically determined by market conditions and the seller's discretion.

Conclusion

In summary, the correct answer is that Sadie must disclose known material facts to the buyer, as this obligation remains even when a property is listed 'as is.' All other options misrepresent the legal responsibilities that sellers hold when selling their property, particularly regarding transparency and honesty in disclosures.