Contracts

A NJ seller who fraudulently conceals a known material defect from the buyer may be held liable for:

AOnly the cost of repair
BRescission of the contract, compensatory damages, and potentially punitive damages under the NJ Consumer Fraud Act✓ Correct
CNo liability if the defect is later discovered
DOnly NJREC disciplinary action

Explanation

Fraudulent concealment of material defects exposes the seller to contract rescission, compensatory damages for the buyer's losses, and potentially treble damages plus attorney fees under the NJ Consumer Fraud Act.

Related New Jersey Contracts Questions

Practice More New Jersey Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New Jersey Quiz →