Jennifer is buying a condominium in Bowling Green, Kentucky. She receives the resale certificate on Wednesday and reviews it carefully. She notices that the association has a large pending special assessment that was not mentioned in the listing. Jennifer decides she no longer wants to purchase the unit. Under the Kentucky Condominium Act, which of the following statements is most accurate regarding Jennifer's options?
Correct Answer
A) Jennifer may rescind the contract within 3 days of receiving the resale certificate without penalty, regardless of what the purchase contract states
Under the Kentucky Condominium Act (KRS Chapter 381.9101 et seq.), a buyer has the right to rescind a condominium purchase contract within 3 days of receiving all required documents, including the resale certificate. This right exists regardless of what the purchase contract says and does not require the buyer to prove fraud, misrepresentation, or any specific deficiency in the documents. The discovery of an unfavorable pending special assessment is precisely the type of material information the resale certificate is designed to reveal, and Jennifer may exercise her statutory rescission right without penalty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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