A buyer's offer on a home in Saginaw, Michigan is accepted by the seller on Friday afternoon. The purchase agreement contains no provision about when the Seller's Disclosure Statement must be delivered. The seller provides the disclosure to the buyer the following Monday. The buyer reads the disclosure, discovers a significant water intrusion issue not visible during the showing, and immediately tells the agent they want to cancel. It is now Tuesday morning. Under the Michigan Seller Disclosure Act, which outcome is most accurate?
Correct Answer
B) The buyer may rescind because the disclosure was delivered after contract signing, and the 72-hour period has not yet expired
Under the Michigan Seller Disclosure Act (MCL 565.951–565.965), when the Seller's Disclosure Statement is delivered to the buyer after the purchase agreement is signed, the buyer has 72 hours from receipt to rescind the agreement. The seller delivered the disclosure on Monday. Tuesday morning is within 72 hours of Monday delivery. Therefore, the buyer's right of rescission is still active and may be exercised. The buyer's motivation (the water intrusion issue) is irrelevant — the right to rescind is unconditional and does not depend on finding a specific defect. The statute requires delivery before or at the time of signing; late delivery triggers the rescission right.
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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.
More Contracts Questions
Which of the following is required for a valid contract in California?
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Specific performance in North Dakota:
- → In a contract for deed (land contract), who retains legal title to the property until the purchase price is fully paid?
- → Which of the following is NOT required for a valid bill of sale?
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