In New Jersey, an "as-is" clause in a sales contract does not relieve a seller from the legal obligation to disclose known, material latent defects. A latent defect is a fault in the property that is not discoverable by a reasonably prudent inspection. The seller's knowledge of the defect and failure to disclose it constitutes fraudulent concealment or misrepresentation. This action makes the contract voidable at the option of the buyer, who was induced to enter the agreement without knowledge of the true condition of the property. The buyer's primary remedy in this situation is to rescind (void) the contract.

B. can reduce the contract sales price by the cost of correcting the defect.

The buyer cannot unilaterally change the contract terms. While negotiating a price reduction is possible, it is not an automatic right.

C. must go through with the purchase because the house is being sold as is.

The "as-is" clause does not protect a seller from liability for failing to disclose known, material latent defects. This is a well-established legal principle.

D. can force the seller to correct the defect.

This remedy, a form of specific performance for repairs, is not a standard right for the buyer. The primary remedies are rescission of the contract or suing for damages.

1. New Jersey Supreme Court Case Law: The landmark case Weintraub v. Krobatsch, 64 N.J. 445 (1974), established the seller's duty to disclose known, latent defects. The Court held that "deliberate concealment or nondisclosure is the equivalent of actual fraud" and gives the buyer grounds for rescission of the contract.

2. New Jersey Administrative Code: N.J.A.C. 11:5-6.4(b) mandates that real estate licensees "make reasonable effort to ascertain all material information concerning the physical condition of every property for which he or she is retained to market." This reflects the underlying legal duty of disclosure that extends to sellers.

3. University Courseware: In property law courses, such as those based on the principles outlined in the Restatement (Second) of Torts § 551, a seller of real property is liable for nondisclosure of known facts that are not observable by the buyer if they are material to the transaction. This principle is foundational to New Jersey real estate law. (e.g., Course materials on Property Law, Seton Hall University School of Law, often cite Weintraub v. Krobatsch as a key case in seller disclosure obligations).