If a seller misrepresents facts on the disclosure statement, can the buyer rescind their offer without losing their good faith deposit?

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If a seller misrepresents facts on the disclosure statement, can the buyer rescind their offer without losing their good faith deposit?

The seller stated that the 30 year roof was 22 years old and the A.C was 9 years old. Upon inspection the A.C was noted to be 19 years old and the roof condition was under suspicion of being damaged with roughly 2 years left of life. A roofer looked at the roof and stated it needed to be replaced and could not be certified for 2 years. Based on the misrepresentation by the seller, can the buyer rescind their offer without risking their good faith deposit?

Asked on August 2, 2012 under Real Estate Law, New Jersey

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Who filled out the disclosure statement: the seller or the real estate agent?  Next, are you in contract yet abd do you have an attorney here because you need one.  Deposits are generally made in conjunction with a contract and the conrtact made contingent upon inspection and representations.  Depending where you are in the process will govern how you are to act. You can renegotiate the price lowering same for the price of a roof and new AC system. But one needs to see what you signed to know how to get that money back should you want to back out.  Get help.  Good luck. 

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Who filled out the disclosure statement: the seller or the real estate agent?  Next, are you in contract yet abd do you have an attorney here because you need one.  Deposits are generally made in conjunction with a contract and the conrtact made contingent upon inspection and representations.  Depending where you are in the process will govern how you are to act. You can renegotiate the price lowering same for the price of a roof and new AC system. But one needs to see what you signed to know how to get that money back should you want to back out.  Get help.  Good luck. 


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