A seller in Connecticut accepts a buyer's written offer, and both parties sign the purchase contract. The contract does not include a property condition disclosure report, and the seller did not deliver one before the signing. Three days after signing, the seller delivers the disclosure report, which reveals significant foundation issues. The buyer, alarmed by the disclosure, immediately sends written notice of rescission to the seller. The seller argues the buyer has waived the right to rescind because the buyer had already signed the contract. Under CGS § 20-327b, which of the following most accurately describes the buyer's legal position?
Correct Answer
C) The buyer retains the right to rescind because the disclosure was not provided before the purchase contract was signed, as required by statute
CGS § 20-327b requires the seller to deliver the written property condition disclosure report to the buyer before the buyer signs the purchase contract. When the seller fails to provide the disclosure before contract execution, the statute preserves the buyer's right to rescind. The buyer's act of signing the contract without having received the disclosure does not constitute a waiver of the statutory rescission right — the statute is designed precisely to protect buyers in this situation. The buyer's prompt written rescission upon receiving the late disclosure is a valid exercise of the statutory right, regardless of the seller's waiver argument.
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Related Topics & Key Terms
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Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
More Contracts Questions
Which of the following is required for a valid contract in California?
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After a residential purchase contract has been signed by both parties in Illinois, the buyer and seller verbally agree to change the closing date. What is the legally sound way to document this change?
Specific performance in North Dakota:
- → In a contract for deed (land contract), who retains legal title to the property until the purchase price is fully paid?
- → Which of the following is NOT required for a valid bill of sale?
- → A Nevada real estate salesperson is helping a buyer draft a purchase agreement. Which of the following is NOT a required element for a Nevada residential purchase agreement to be legally enforceable?
- → Sawyer Iverson is reviewing an Illinois issue in Joliet. The person assumes that attorney review automatically replaces every inspection, appraisal, or financing deadline in a standard Illinois residential contract. Which statement best applies?
- → Tom and Linda sign a purchase agreement for a home in Hartford, Connecticut. The agreement includes a financing contingency stating that if Tom cannot obtain a mortgage commitment within 21 days, either party may void the contract. On day 19, Tom's lender issues a written mortgage commitment. On day 22, Tom changes his mind and tries to void the contract by claiming the financing contingency was not satisfied. Which of the following best describes the legal status of the contract?
- → Avery Jenkins is reviewing an Illinois issue in Normal. The person asks what happens if neither attorney sends a disapproval or proposed change during the standard review period. Which statement best applies?
- → Under Montana law, a purchase agreement for residential real property becomes legally binding on the seller when which of the following occurs?
- → Johnny wants the seller's patio furniture included in his purchase of a house. Before the offer is signed and delivered to the seller, he asks his agent to attach a page covering the furniture to the offer. That attached page is best described as:
- → A bilateral contract in real estate is best described as:
- → A contract where one party uses threats to force the other party to sign is considered:
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