RaeAnn and Rick Telford Purchased an Existing Home in a Neighborhood

question 97

Multiple Choice

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 because neither sellers nor brokers are required to disclose psychological issues with properties.
• D)none of the above

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Definitions:

Contract

A legally binding agreement between two or more parties.

Plus Margin

The percentage added to the cost of goods to arrive at a selling price that includes a profit margin.

Transaction Price

The amount of consideration that a company expects to receive from a customer in exchange for transferring goods or services.