Sarah is selling her single-family home in Annapolis, Maryland. She provides the buyer, Tom, with a completed Maryland Residential Property Disclosure Statement on the same day Tom makes his written offer. Tom signs the disclosure acknowledgment and proceeds with the contract. Under Maryland law, which statement best describes Tom's rescission rights in this situation?
Correct Answer
A) Tom has no rescission rights because he received the disclosure before signing the contract
Under the Maryland Residential Property Disclosure and Disclaimer Act, Md. Code Ann., Real Prop. § 10-702, a buyer who receives the Disclosure or Disclaimer Statement has the right to rescind the contract within three (3) days after receiving the statement. This rescission right applies regardless of when the disclosure is provided relative to the contract signing, as long as the buyer received it after entering into the contract.
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Related Topics & Key Terms
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Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
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