RaeAnn and Rick Telford purchased an existing home in a neighborhood of multi-million-dollar homes.After moving in,the Telfords learned that the home had been owned formerly by a couple that was indicted for drug trafficking.The home had been raided by DEA agents,and there had been a shoot-out before the couple was taken into custody.The couple's youngest child was killed in the house during the shoot-out.RaeAnn and Rick:
A)have no recourse if there is nothing physically wrong with the house.
B)have a remedy of damages or rescission if this information was withheld from them.
C)have no remedy because neither sellers nor brokers are required to disclose psychological issues with properties.
D)none of the above

Question

Quizplus · Accepted Answer

The Telfords have a remedy of damages or rescission if the information about the house's history was withheld from them. This is because there is a legal obligation to disclose material facts that could impact the value or desirability of the property. The fact that a violent crime occurred in the home could certainly be considered a material fact.

RaeAnn and Rick Telford Purchased an Existing Home in a Neighborhood