Contracts

An Arizona seller who provides a Property Disclosure Statement (SPDS) that omits known material defects is liable for:

ANothing, since the buyer has the duty to inspect
BMisrepresentation or fraudulent concealment, potentially allowing the buyer to rescind the contract or sue for damages✓ Correct
COnly a $500 administrative fine from ADRE
DOnly liability if the buyer specifically asked about the defect

Explanation

Deliberately omitting known material defects from the SPDS constitutes fraudulent concealment or misrepresentation. The buyer can rescind the contract, recover damages, and the seller may face license discipline if they are licensed.

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