A buyer and seller in Michigan execute a purchase agreement for a residential property. The seller delivers the Seller's Disclosure Statement to the buyer on the same day the purchase agreement is signed. Three days later, the seller discovers a previously unknown water intrusion problem in the basement and amends the disclosure statement to reflect this new information. Under the Michigan Seller Disclosure Act, what is the buyer's right upon receiving the amended disclosure?
Correct Answer
B) The buyer has 72 hours from receipt of the amended disclosure statement to rescind the purchase agreement
Under the Michigan Seller Disclosure Act (MCL 565.957), when a seller amends the Seller's Disclosure Statement after the purchase agreement is signed — due to newly discovered information — the buyer's 72-hour right of rescission is triggered anew upon receipt of the amended statement. The buyer has 72 hours from receipt of the amended disclosure to rescind the agreement and recover the earnest money.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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