What Is the Purpose of a 'State of Repair' Clause

question 40

Multiple Choice

What is the purpose of a 'state of repair' clause in a real estate transaction?

• A) to relieve the seller of any liability for hidden defects in the property
• B) to require the seller to notify the buyer of any defects that would impact its decision to purchase the property
• C) to require the seller to ensure the condition of the property remains unchanged until closing
• D) to require the seller to repair hidden defects in the property

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Definitions:

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise rather than internal factors like personal satisfaction or enjoyment of the task itself.

Financial Insecurity

A state of being unsure or having anxiety about one's financial future and stability.

Self-Actualization

The process of realizing and fulfilling one's own potential, capacities, and talents as a way of becoming the most that one can be.

Esteem Needs

According to Maslow, these are the fourth level in the hierarchy of needs, involving the desire for self-esteem, strength, competence, and respect from others.