What happens if a seller misrepresents the condition of a property?

When a seller misrepresents the condition of a property, it creates a significant legal issue under contract law and real estate regulations. The principle of misrepresentation provides that the buyer has a right to rely on the seller's statements regarding the property. If the buyer discovers that the seller has provided false information about the condition of the property, they generally have the option to terminate the contract without penalty. This is rooted in the doctrine of caveat emptor (let the buyer beware) being mitigated by the principle that sellers have an obligation to disclose material defects.

Further, buyers have legal protections against fraud and misrepresentation, allowing them to seek remedies such as rescission of the contract (cancellation) and possibly damages for any losses incurred. This empowers the buyer to act if they have been led to believe the property was in a different condition than it actually is.

The other options do not align with the legal ramifications of seller misrepresentation or the rights of buyers. A verbal warning does not provide any legal recourse, a significant price reduction isn't a guaranteed requirement and buyers bearing the consequences runs counter to the principles of real estate law that protect consumers.