In states that give residential buyers a statutory cooling-off period, in which situation would it NOT apply?
Correct Answer
D) Purchase at a public auction
Cooling-off periods do not apply to properties purchased at public auctions because buyers are expected to have conducted all necessary due diligence before bidding. Auction purchases are considered unconditional once the hammer falls.
Why This Is the Correct Answer
In the states that have statutory cooling-off for residential sales, it does not apply to purchases at public auction. Bidders are expected to complete due diligence beforehand, and the contract is binding when the hammer falls.
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Sarah buys 'subject to finance' with a 21-day finance clause. On day 20 her loan is still pending, and the vendor has refused to extend the date. What should Sarah do to protect her position?