In Western Australia, a vendor deliberately conceals a known easement that significantly affects the property's development potential. The easement is not mentioned in the contract or disclosure documents, but is registered on title. What is the purchaser's strongest legal position?
Correct Answer
D) A right to terminate for fraudulent misrepresentation and to claim damages
While easements on title are generally deemed to be known, deliberately concealing material information that significantly affects the property's value or use potential may constitute fraudulent misrepresentation. This could give the purchaser grounds to terminate the contract and claim damages, despite the easement being registered.
Why This Is the Correct Answer
Deliberately concealing a material easement can be fraudulent misrepresentation, which allows the purchaser to end the contract and recover damages even though the easement is registered.
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