Under an "as is" contract, which statement is true about the seller's obligations?

The correct statement regarding a seller's obligations under an "as is" contract is that the seller must disclose any material defects. This means that even though the property is being sold in its current condition, the seller is still legally required to inform potential buyers about issues that could significantly affect the property's value or desirability.

Material defects refer to problems with the property that are not easily observable and could influence a buyer's decision. For instance, if there are issues such as structural damage, plumbing problems, or issues that could pose health hazards, these must be disclosed. The obligation to disclose material defects is rooted in the principle of good faith and fair dealing in real estate transactions, ensuring that buyers are fully informed about what they are purchasing, even in an "as is" scenario.

In contrast, the other choices reflect misconceptions about the responsibilities of sellers in an "as is" transaction. The seller does not have a blanket requirement to repair every defect nor are they exempt from any disclosures. Additionally, sellers cannot simply hide defects without facing potential legal repercussions. Therefore, while selling "as is" suggests limited obligation for repairs, the duty to disclose significant defects remains intact.