A purchase agreement in Anne Arundel County, Maryland, is signed by both parties on June 1st. The seller provides the buyer with a Residential Property Disclosure Statement on June 3rd. The buyer's agent tells the buyer that since the contract was already signed, the buyer has no right to rescind based on the disclosure. Under the Maryland Residential Property Disclosure and Disclaimer Act, is the agent's statement correct?
Correct Answer
D) No, because Maryland law grants the buyer a right to rescind within 5 days of receiving the disclosure statement, even if the contract was signed first
Under the Maryland Residential Property Disclosure and Disclaimer Act, Md. Code Ann., Real Prop. § 10-702 et seq., when a seller provides a Disclosure Statement or Disclaimer Statement to the buyer after the contract has been signed, the buyer retains a right to rescind the contract within 5 days of receiving the disclosure. This rescission right exists specifically to protect buyers who sign contracts before having the opportunity to review the disclosure. The agent's statement is incorrect — the buyer does have a right to rescind within 5 days.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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