Contracts
A New York buyer signs a contract to purchase a condominium. The seller's offering plan contains a material misstatement that the buyer did not discover until after signing. The buyer may:
ANot rescind the contract because they should have read the offering plan
BRescind the contract based on the Martin Act's provisions protecting purchasers from material misstatements in offering plans✓ Correct
COnly sue for damages, not rescission
DReport the seller to the DOS but cannot rescind
Explanation
New York's Martin Act (General Business Law Article 23-A) imposes strict disclosure requirements on real estate offering plans (including condominiums and cooperatives). A material misstatement in an offering plan may entitle the buyer to rescind the contract and recover their deposit, as well as seek damages.
Related New York Contracts Questions
- In New York, the period between signing a purchase contract and closing is most commonly used for:
- The Statute of Frauds requires that real estate contracts in New York must be:
- A New York listing agreement must include which of the following to be enforceable?
- Novation in a contract context means:
- A buyer makes an offer, and the seller responds by changing one term of the offer. The buyer then accepts the seller's changed term. Which of the following best describes the binding contract?
- A walk-through inspection before closing in New York allows the buyer to:
- When a seller accepts a buyer's offer, the resulting contract is known as a:
- In New York, which of the following represents an 'implied covenant' that courts will read into most real estate contracts?
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