Under what circumstances can a buyer rescind a real estate contract?

A buyer can rescind a real estate contract under the circumstances where there is significant misrepresentation or breaches of contract. This legal right to rescind stems from the principle that both parties must adhere to the terms of the agreement honestly and transparently. If a buyer discovers that critical information was either misrepresented or omitted, it may undermine the contract's foundations, allowing them to legally terminate the agreement.

For example, if a seller knowingly misstates the property's condition or fails to disclose essential defects, the buyer would be justified in rescinding the contract based on that misrepresentation. Similarly, any significant breaches of the contract terms, such as the seller failing to comply with agreed-upon conditions, grant the buyer the right to terminate the contract.

Understanding this principle helps buyers protect themselves in real estate transactions and ensures that sellers are held accountable for truthful representations regarding their properties.