In a Utah real estate transaction, the buyer discovers after the due diligence deadline that the seller failed to disclose a known plumbing defect on the Seller's Property Condition Disclosure form. What remedy does the buyer have?
Correct Answer
B) The buyer may pursue legal action for fraud or misrepresentation even after closing
While the due diligence deadline governs the buyer's general right to cancel, deliberate failure to disclose a known defect on the Seller's Property Condition Disclosure form may constitute fraud or misrepresentation. The buyer retains the right to pursue legal remedies even after closing in cases of seller fraud.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
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.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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