Priya is purchasing a condominium unit in a new development in Ann Arbor. The developer delivers the complete Condominium Disclosure Package to Priya on Monday morning. Under the Michigan Condominium Act (MCL 559.183), what is the last day Priya can rescind the purchase agreement?
Correct Answer
A) The second Wednesday after delivery (9 business days later)
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. Business days exclude weekends and holidays. If the package is delivered Monday morning, the 9-business-day period would end on the second Wednesday (counting Monday as day 1: Mon, Tue, Wed, Thu, Fri = 5 days in week one; Mon, Tue, Wed = 3 more days, totaling 9 business days by the second Wednesday).
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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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