Sarah is purchasing a home in Grand Rapids. She signs a purchase agreement and the seller accepts. The seller's agent informs Sarah that under the Michigan Seller Disclosure Act, she has a right to rescind the purchase agreement after receiving the Seller's Disclosure Statement. How long does Sarah have to exercise this right of rescission?
Correct Answer
C) 72 hours after receiving the Seller's Disclosure Statement
Under the Michigan Seller Disclosure Act (MCL 565.951–565.965), a buyer has 72 hours after receiving the Seller's Disclosure Statement to rescind the purchase agreement. This right applies when the disclosure is provided after the purchase agreement is signed.
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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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