Tom buys a piece of land based on the innocent misrepresentation of a real estate agent. He can get rescission of the contract
A) if requested within 48 hours of the discovery.
B) up until the final closing date of the sale.
C) as long as it's after the transfer of title.
D) as well as receive damages, since this is the sale of real property.
E) but only up until the time a mortgage is placed on the land.

Question

Quizplus · Accepted Answer

Tom can get rescission of the contract up until the final closing date of the sale, as he was induced to enter into the contract based on a misrepresentation by a real estate agent. However, he may not receive damages unless he can prove that he suffered a financial loss as a result of the misrepresentation. The other answer choices are incorrect because there is no 48-hour time limit for rescission, rescission is not available after transfer of title, real property sales do not automatically result in damages for innocent misrepresentations, and the placement of a mortgage on the land does not affect the ability to get rescission for an innocent misrepresentation.

Tom Buys a Piece of Land Based on the Innocent