What happens if a property has defects that were not disclosed by the seller?

If a property has defects that the seller did not disclose, the buyer may seek legal action based on the grounds of fraud. In real estate transactions, sellers have a responsibility to reveal known material defects that could affect the property's value or desirability. When a seller intentionally conceals defects or fails to disclose relevant information, this can be seen as fraudulent behavior.

A lawsuit for fraud can allow the buyer to seek remedies such as recovering damages or rescinding the purchase agreement. This notion is rooted in the legal principle that buyers have a right to rely on the representations made by sellers concerning the condition of the property. The importance of seller disclosure is underscored by laws that aim to protect buyers and promote transparency in real estate transactions.

Other options, such as having no recourse or the transaction being voided immediately, do not reflect the legal framework surrounding real estate sales, where buyers are afforded certain protections against undisclosed defects. Moreover, the seller being not liable would contradict the responsibility that sellers hold in providing accurate, honest information regarding the property.