Contracts
Under New York law, a seller who fails to disclose a known latent defect that the buyer could not reasonably discover may be liable for:
AOnly refunding the purchase price
BFraud or misrepresentation, potentially allowing the buyer to rescind the contract and/or recover damages✓ Correct
CNothing, as caveat emptor applies
DA maximum of $500 under the PCDA
Explanation
New York has substantially eroded the strict caveat emptor doctrine for residential real estate. A seller who knowingly conceals a latent (hidden) material defect may be liable for fraud or misrepresentation, allowing the buyer to rescind and/or recover damages.
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