A buyer purchases a newly constructed condominium unit from a developer in Grand Rapids, Michigan. The developer provides the complete Condominium Disclosure Package — including the master deed, bylaws, and budget — on Monday. The buyer signs the purchase agreement on the same day. The buyer later has second thoughts and wants to cancel. Under the Michigan Condominium Act, what is the buyer's right of rescission?
Correct Answer
D) The buyer has 9 business days from receiving the complete Condominium Disclosure Package to rescind the purchase agreement
Under the Michigan Condominium Act (MCL 559.183), a buyer of a condominium unit from a developer has 9 business days to rescind the purchase agreement after receiving the complete Condominium Disclosure Package (master deed, bylaws, budget, and other required documents). This right exists regardless of when the purchase agreement was signed. Even if the buyer signed on the same day the disclosure was received, the 9-business-day rescission period still applies and runs from the date of receipt of the complete package.
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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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