During settlement, the purchaser's solicitor discovers an unregistered easement affecting the property that was not disclosed in the contract. What is the most likely outcome?
Correct Answer
B) The purchaser may be able to claim compensation or terminate the contract
An undisclosed easement constitutes a material defect in title that the vendor has failed to disclose. The purchaser typically has the right to seek compensation for the diminished value or terminate the contract due to the vendor's breach of disclosure obligations.
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