A buyer in Glendale discovers undisclosed foundation problems after closing. The seller knew about the problems but failed to disclose them. What remedy is most appropriate under Arizona law?
Correct Answer
C) Damages for cost of repairs and diminished value
Since closing has occurred, the buyer's remedy is damages for repair costs and diminished value due to the undisclosed defects. Option A is incorrect because rescission after closing is difficult and requires extraordinary circumstances. Option B is incorrect because specific performance applies to compelling contract performance, not post-closing issues. Option D is incorrect because liquidated damages typically don't apply to non-disclosure situations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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