Sarah is purchasing a single-family home in Duluth, Minnesota. After signing the purchase agreement, she discovers that the seller failed to disclose a known leaking basement. Under the Minnesota Residential Real Property Disclosure Act, what is Sarah's primary remedy?
Correct Answer
D) Sarah may rescind the purchase agreement and recover her earnest money
Under Minn. Stat. § 513.52–513.60 (Minnesota Residential Real Property Disclosure Act), if a seller fails to disclose known material defects, the buyer has the right to rescind the purchase agreement and recover earnest money paid. This right of rescission is a key buyer protection under Minnesota's disclosure law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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