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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.

Answer Options
A
No remedy, because anything registered on title is treated as known to the purchaser
B
A right to extend settlement by 30 days for further investigation, but not to end the contract
C
A right to a proportionate price reduction only, with the contract otherwise binding
D
A right to terminate for fraudulent misrepresentation and to claim damages

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Related Topics & Key Terms

Key Terms:

fraudulent misrepresentationconstructive noticedeliberate concealmentmaterial factsTorrens system
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