Jennifer and her husband are purchasing a home in Kalamazoo, Michigan. The seller accepts their offer on March 10. On March 11, the seller delivers the completed Seller's Disclosure Statement to Jennifer. Jennifer reviews it and discovers a previously unknown issue with the foundation. Under the Michigan Seller Disclosure Act, what right does Jennifer have and by what deadline?
Correct Answer
D) Jennifer may rescind the purchase agreement within 72 hours of receiving the disclosure statement
Under the Michigan Seller Disclosure Act (MCL 565.951–565.965), when a buyer receives the Seller's Disclosure Statement after signing a purchase agreement, the buyer has 72 hours from receipt to rescind the purchase agreement without penalty. This right exists because the buyer did not have the benefit of the disclosure information when making the offer. Jennifer received the disclosure on March 11, so she has until the same time on March 14 to exercise her right of rescission.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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