A Maryland buyer submits an offer on a condominium in Baltimore City. The seller accepts and both parties sign the contract. The listing agent then provides the buyer with the required condominium resale package. The buyer reviews the documents and is unhappy with the level of the condo association's reserve fund. What right does the buyer have under Maryland law at this point?
Correct Answer
B) The buyer may rescind the contract within the statutory rescission period after receiving the resale package
Under the Maryland Condominium Act (Md. Code Ann., Real Prop. § 11-135), a buyer of a resale condominium unit has the right to rescind the contract within a specific period after receiving the required resale package (which includes the declaration, bylaws, rules, financial statements, and reserve fund disclosures). This statutory right of rescission exists regardless of whether a binding contract was signed before the resale package was delivered. The buyer is not required to state a reason for rescission.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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