A Delaware purchase agreement for a home in Dover includes an inspection contingency. The buyer's inspector discovers that the property has a failing septic system, which was not disclosed on the seller's disclosure form. Under the Delaware Residential Real Property Disclosure Act, which remedy is available to the buyer?
Correct Answer
B) The buyer may rescind the contract or seek damages for the seller's failure to disclose
Under the Delaware Residential Real Property Disclosure Act (6 Del. C. § 2570 et seq.), a seller's failure to disclose known material defects — such as a failing septic system — entitles the buyer to rescind the contract or seek damages. The Act imposes liability on sellers who knowingly fail to disclose material defects, and the buyer's remedies include both contract rescission and a damages claim.
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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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