Maria signed a purchase agreement to buy a single-family home in Hartford, Connecticut, and deposited $15,000 in earnest money with the listing broker. Before closing, Maria discovered a significant undisclosed structural defect and chose to rescind the contract. Under Connecticut law, which of the following best describes Maria's right to recover her earnest money deposit?
Correct Answer
B) Maria is entitled to a full refund of the deposit because the seller's failure to disclose a known material defect constitutes a breach by the seller
Under Connecticut law, including the Residential Property Condition Disclosure Act (CGS § 20-327b), sellers are required to disclose known material defects. When a seller fails to disclose a known material defect, it constitutes a breach of the seller's contractual and statutory obligations. Because the seller is the breaching party, Maria is entitled to rescind the contract and recover her full earnest money deposit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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