Contracts
Under the TREC contract's environmental paragraph, the seller represents that they have no knowledge of conditions on the property that would violate laws. If this representation proves false, the buyer's remedy is:
AA TREC investigation only
BTermination of the contract, damages under general contract law, and/or fraud claims✓ Correct
CReplacement of the seller's agent
DOnly a reduction in purchase price
Explanation
A false material representation in a real estate contract can give rise to remedies for breach of contract, misrepresentation, and fraud — including termination of the contract, recovery of actual damages, and potentially punitive damages for intentional fraud.
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