Contracts
A Nevada seller accepts a buyer's offer and both sign the contract. Two days later the buyer discovers a material defect not disclosed by the seller. The buyer may:
AOnly terminate if the defect was listed on the SRPD
BPotentially rescind the contract based on misrepresentation or non-disclosure of material fact✓ Correct
CNot terminate because the contract is already fully formed
DOnly sue for damages after closing
Explanation
A buyer who discovers an undisclosed material defect may have grounds to rescind (cancel) the contract based on the seller's misrepresentation or non-disclosure of a material fact, or may seek damages. Nevada's SRPD requirement makes seller disclosure particularly important.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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