A buyer in Kalamazoo receives the Seller's Disclosure Statement on the same day the purchase agreement is signed. Under the Michigan Seller Disclosure Act (MCL 565.951–565.965), which statement correctly describes the buyer's rescission rights in this situation?
Correct Answer
A) The buyer has no rescission right because the disclosure was received simultaneously with signing
Under the Michigan Seller Disclosure Act (MCL 565.957), the buyer's 72-hour right of rescission is triggered only when the Seller's Disclosure Statement is delivered after the purchase agreement is signed. If the buyer receives the disclosure at or before the time of signing the purchase agreement, the buyer has no statutory right to rescind based on the disclosure. The rescission right exists to protect buyers who sign without having seen the disclosure; if they sign with the disclosure in hand, the protection is not needed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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.
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