A buyer and seller in Detroit have a fully executed purchase agreement for a single-family home. The seller then provides the Seller's Disclosure Statement to the buyer. The buyer reviews it and discovers a material defect that was not previously disclosed. The buyer decides to rescind the agreement. Which statement best describes the buyer's rights under Michigan law?
Correct Answer
B) The buyer may rescind the agreement within 72 hours of receiving the Seller's Disclosure Statement
Under the Michigan Seller Disclosure Act (MCL 565.957), when a seller delivers the Seller's Disclosure Statement after the purchase agreement is signed, the buyer has 72 hours from receipt to rescind the agreement. The buyer is entitled to a full refund of any earnest money deposit upon timely rescission.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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.
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