A seller completes an Agreement of Purchase and Sale for their home which includes a clause stating 'the property is sold in an 'as-is' condition.' What does this clause typically mean regarding latent defects?

Question: A seller completes an Agreement of Purchase and Sale for their home which includes a clause stating 'the property is sold in an 'as-is' condition.' What does this clause typically mean regarding latent defects?

Answer options: ✅ The 'as-is' clause does not relieve the seller of the duty to disclose known latent defects.

• The 'as-is' clause provides full protection to the seller from any future claims related to defects, latent or patent.
• The buyer must accept all latent defects without recourse if an 'as-is' clause is present.
• The seller is only responsible for patent defects, not latent defects, under an 'as-is' clause.

Correct answer: The 'as-is' clause does not relieve the seller of the duty to disclose known latent defects.

Explanation: An 'as-is' clause generally means the buyer accepts the property in its current visible condition. However, it does not absolve a seller from their obligation to disclose known latent defects that render the property dangerous, uninhabitable, or where there has been fraudulent concealment.