After signing a California RPA, a buyer receives the Transfer Disclosure Statement (TDS) for the first time — it was not delivered before or at the time of signing as required by California Civil Code §1102. The TDS reveals no material defects. What right does the buyer have?
Correct Answer
A) The buyer may rescind the contract within 3 days of personal delivery or 5 days of delivery by mail, regardless of the TDS contents
Under California Civil Code §1102.3, when the TDS is delivered after the buyer has signed the offer, the buyer has 3 days to rescind if the TDS is delivered in person, or 5 days to rescind if delivered by mail. This rescission right is triggered solely by the failure to deliver the TDS on time — it exists regardless of whether the TDS reveals any defects. The statute's purpose is to ensure buyers have material disclosure information before being bound, so the content of the late-delivered TDS is irrelevant to the right itself.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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