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
B) 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
Key Terms:
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.
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