A Florida buyer discovers undisclosed material defects after signing a purchase contract but before closing. The seller refuses to repair or reduce the price. What is the buyer's strongest legal position?
Correct Answer
B) Rescind the contract due to material misrepresentation
Rescission due to material misrepresentation or non-disclosure is the buyer's strongest remedy, allowing them to cancel the contract and recover their deposit. Option A is incorrect because specific performance wouldn't help the buyer avoid the defective property. Option C is poor strategy as accepting the property may waive claims. Option D is incorrect as liquidated damages are typically seller remedies for buyer default.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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