Question

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 becasue neither sellers nor brokers are required to disclose psychological issues with properties

.d.none of the above

Answer 1

Answer:

b. have a remedy of damages or rescission if this information was withheld from them

Explanation:

In business law, one of the main grounds of rescission are: misrepresentation (whether fraudulent, negligent or innocent), non-disclosure in relation to contracts of insurance, and

undue influence, duress and unconscionability.

In this case, RaeAnn and Rick have a remedy of damages or rescission if this information was withheld from them