Contracts

An Oregon buyer and seller have a signed purchase contract. The seller finds the property has a significant previously unknown structural defect. The seller's obligation is to:

AConceal the defect and proceed to closing
BDisclose the material defect to the buyer promptly✓ Correct
CCancel the contract without liability
DHave the defect repaired before disclosing it

Explanation

In Oregon, if a seller discovers a material defect after the contract is signed, they have a duty to promptly disclose it to the buyer. The buyer may then choose to proceed, renegotiate the price or repair credits, or terminate the contract based on the disclosure.

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