New Jersey Real Estate Practice Exam Practice Question
A seller is offering his property for sale in as-is condition. A buyer enters into a contract with the seller and has the home inspected. The inspection reveals a latent defect known to, but not disclosed by, the seller. The buyer
Correct Answer: A
Rationale: In this scenario, the buyer can void the contract because the seller failed to disclose a latent defect that he was aware of. This non-disclosure constitutes a breach of duty to inform the buyer, allowing for contract termination.
Option B is incorrect; while the buyer might seek compensation, they cannot simply reduce the sales price after discovering a defect that was not disclosed. Option C misinterprets the implications of an "as-is" sale; even in such cases, undisclosed defects can lead to contract voidance. Option D is also wrong, as the buyer cannot compel the seller to make repairs after an as-is sale unless there is a clear agreement to that effect.
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