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Practice Of Real Estate DisclosuresNatural_hazard_disclosureEASY

A first-time buyer in San Diego asks their agent what happens if the seller fails to provide an NHD before closing. Under California law, what right does the buyer have?

Correct Answer

D) The buyer may terminate the agreement within 3 days of learning the NHD was not provided, if escrow has not closed

Under California Civil Code §1103.3, if the NHD is not provided before closing, the buyer retains the right to terminate. Once the buyer learns the NHD was not delivered, the buyer has 3 days (personal notice) or 5 days (mail notice) to exercise rescission if escrow has not yet closed.

Answer Options
A
The buyer must close the transaction and seek damages afterward
B
The buyer may rescind the purchase agreement at any time before or after closing if the NHD was not provided
C
The buyer has no right to rescind but can file a complaint with the DRE
D
The buyer may terminate the agreement within 3 days of learning the NHD was not provided, if escrow has not closed

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Related Topics & Key Terms

Key Terms:

NHDrescissionmissing_disclosurebuyer_rightsCal_Civil_Code_1103.3
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