A Michigan buyer signs a purchase agreement for a residential property. The seller provides the Seller's Disclosure Statement 48 hours after the purchase agreement is signed. The buyer does NOT rescind within 72 hours. Two weeks later, the buyer discovers that the seller knew about a leaking underground oil tank at the time of the disclosure but failed to disclose it. The buyer now seeks to cancel the contract. Under Michigan law, which of the following best describes the buyer's legal position?
Correct Answer
D) The buyer may seek rescission or damages based on fraudulent misrepresentation or concealment, independent of the 72-hour Seller Disclosure Act period
While the 72-hour rescission right under the Michigan Seller Disclosure Act (MCL 565.957) has expired, the buyer retains independent legal remedies based on fraudulent misrepresentation or concealment. If the seller knowingly concealed a material defect (the leaking oil tank), the buyer may pursue rescission or damages under common law fraud or Michigan's Consumer Protection Act, independent of the Seller Disclosure Act's rescission window. The expiration of the statutory 72-hour period does not extinguish common law fraud remedies.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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