In Louisiana, the warranty against defects (redhibition) provides that:
Correct Answer
B) The buyer can seek rescission or price reduction for hidden defects that existed before the sale and render the thing useless or so inconvenient that the buyer would not have purchased it
Redhibition (Civil Code Art. 2520-2548) is Louisiana's unique warranty against hidden defects. Unlike common-law caveat emptor, it gives buyers the right to rescind a sale or obtain a reduction in price for defects that existed before the sale.
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Related Topics & Key Terms
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Related Concepts
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.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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