Under the Michigan Seller Disclosure Act (MCL 565.951–565.965), how many hours does a buyer have to rescind a purchase agreement after receiving the Seller's Disclosure Statement?
Correct Answer
D) 72 hours
Under the Michigan Seller Disclosure Act (MCL 565.957), a buyer has 72 hours after receiving the Seller's Disclosure Statement to rescind the purchase agreement. This right of rescission applies when the disclosure is delivered after the purchase agreement is signed. The buyer must provide written notice of rescission within this window.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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