Final answer:
In a lump sum real estate sale, the buyer may have the option to either rescind the sale or ask for a decrease in price if the actual area of the property is less than stated in the contract, depending on contract terms and relevant law.
Step-by-step explanation:
When it comes to the sale of real estate in a lump sum, there may be provisions within a contract that address discrepancies in the area within the boundaries as opposed to the area stated in the contract. If there is a significant difference between the actual area and the area specified in the contract, the buyer may have two potential remedies:
- The buyer may be able to rescind the sale, which means to cancel the agreement and have any sums paid refunded, if the actual area is substantially less than what was agreed upon. This would depend on the terms of the contract and the relevant laws governing such transactions.
- The buyer might request a decrease in price, also known as an abatement, if the area is less than stated in the contract. The amount of the decrease would generally be proportional to the discrepancy between the stated and actual area.
In the context of the law and real estate transactions, these options are often considered under the principles of misrepresentation or breach of contract, but again, the specifics will depend on jurisdiction and the terms of the contract itself.