Patricia is purchasing a home in Indianapolis. After signing the purchase agreement, the seller delivers the Indiana Seller's Residential Real Estate Sales Disclosure Form. Patricia reviews the form and discovers a previously undisclosed issue with the foundation. She wants to cancel the contract. Under Indiana law, how long does Patricia have to rescind the contract after receiving the disclosure?
Correct Answer
D) 2 business days from the time of receipt
Under the Indiana Seller Disclosure Act (IC 32-21-5), a buyer has the right to rescind a purchase agreement within 2 business days of receiving the Seller's Residential Real Estate Sales Disclosure Form. This rescission right applies when the disclosure is delivered after the purchase agreement has been signed. The 2-business-day period begins upon the buyer's receipt of the disclosure form.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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