What does an implied warranty of lawful use clause achieve?

Get more with Examzify Plus

Remove ads, unlock favorites, save progress, and access premium tools across devices.

FavoritesSave progressAd-free
From $9.99Learn more

Prepare for the Real Estate Transactions Exam with study materials and multiple choice questions with comprehensive explanations. Enhance your real estate knowledge and boost your confidence for exam day!

The implied warranty of lawful use clause primarily serves to ensure that the property being sold or leased complies with applicable zoning laws and ordinances at the time the contract is signed. When this clause is included in a real estate transaction, it guarantees that the property's current use is legal. If a zoning or use violation is present at the time of signing, the seller can be found in breach of this warranty, which protects the buyer from inheriting a property with legal issues related to its use.

This clause is essential because it helps buyers avoid potential legal troubles and ensures they can utilize the property as intended without the burden of rectifying violations that existed before their purchase. Therefore, the clause acts as a safeguard for the buyer's interests, making option C the most appropriate answer.

The other options do not accurately reflect the primary function of the implied warranty of lawful use clause. Protecting the seller from future claims doesn't directly relate to the clause's focus on legal use. Although maintaining the property's condition is important, it falls outside the scope of lawful use. Offering legal assistance for future disputes is not a direct outcome of this clause; rather, it’s about ensuring compliance with laws at the time of sale.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy