Contracts
In New York, a seller's failure to disclose a known material defect in the Property Condition Disclosure Statement may give the buyer the right to:
ACancel the contract and recover a $500 credit only
BRescind the contract, recover the deposit, and potentially sue for damages based on fraudulent concealment or misrepresentation✓ Correct
CRequire the seller to make all repairs before closing
DReduce the purchase price by the estimated repair cost automatically
Explanation
While New York's PCDA provides a $500 credit as an alternative to completing the PCDS, if a seller actively conceals or intentionally misrepresents a material defect, the buyer may have the right to rescind the contract, recover the deposit, and potentially sue for damages based on fraud, fraudulent concealment, or misrepresentation. The $500 alternative is only available when no PCDS is delivered at all.
Related New York Contracts Questions
- In New York, a 'contract contingent upon the sale of the buyer's current home' means:
- Which of the following would NOT make a contract void ab initio (void from the beginning)?
- A New York listing agreement must include which of the following to be enforceable?
- In New York, the 'rider' to a standard contract of sale is used to:
- An exclusive right to sell listing agreement means:
- An 'as-is' clause in a New York purchase contract:
- In New York, a real estate purchase contract can be rescinded by mutual agreement of the parties, which is called:
- An 'earnest money deposit' serves to:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →