A Connecticut buyer signs a purchase agreement for a residential property. The seller provides the property condition disclosure report on the same day the contract is signed. The disclosure report reveals no known defects. Three weeks later, before closing, the seller discovers that the basement has a chronic water intrusion problem that existed before the disclosure was made but was not disclosed. Under Connecticut law, which of the following best describes the seller's obligation?
Correct Answer
A) The seller must update the disclosure report to reflect the newly discovered information, and the buyer receives a new three-day right to void the contract
Under CGS § 20-327b, if a seller discovers information after delivering the disclosure report that would have been required to be disclosed, the seller must promptly update the disclosure report and deliver the updated report to the buyer. Upon receipt of a material update to the disclosure, the buyer is entitled to a new three-day right to void the purchase agreement. The fact that the water intrusion existed before the original disclosure but was not known to the seller at that time does not eliminate the duty to update once discovered.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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