A seller in Bloomington, Indiana delivers the Seller's Residential Real Estate Sales Disclosure Form to the buyer on Monday. The buyer signs the form acknowledging receipt. The seller then accepts the buyer's offer on Wednesday. On Thursday, the buyer discovers through an independent home inspection that the roof has significant damage that was not disclosed on the form, and the seller later admits knowing about the damage. What are the buyer's most likely legal remedies under Indiana law?
Correct Answer
A) The buyer may rescind the contract and recover the earnest money, and may pursue damages against the seller for fraudulent concealment
Under Indiana law, the 2-business-day rescission right under IC 32-21-5 is the minimum protection, not the ceiling of a buyer's remedies. When a seller knowingly conceals a material defect on the disclosure form, the buyer retains additional remedies including contract rescission based on fraudulent misrepresentation and civil damages. The seller's knowing omission of the roof damage constitutes fraudulent concealment, which gives rise to independent legal claims beyond the statutory rescission window.
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Related Topics & Key Terms
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