What typically happens if a seller fails to disclose known defects of a property?

When a seller fails to disclose known defects of a property, the most common consequence is that the buyer can rescind the purchase contract. This means that the buyer has the legal right to cancel the agreement due to the seller's failure to provide important information about the property's condition. This action protects the buyer from making an uninformed decision based on incomplete or misleading information. In many jurisdictions, including New Jersey, there are laws that mandate sellers to disclose significant defects that could affect a buyer's decision or the property’s value.

If the buyer discovers defects after the purchase that the seller was aware of but did not disclose, it can lead to legal actions where the buyer seeks remedies such as rescission, damages, or the right to negotiate repairs. This obligation encourages transparency in real estate transactions and aligns with the principle of good faith in property dealings. The other options do not typically align with the legal framework surrounding real estate transactions related to undisclosed defects.