A buyer in Traverse City is purchasing a resale condominium unit from the original owner (not a developer). The seller provides the buyer with a copy of the master deed, bylaws, and current budget. The buyer asks their agent how long they have to rescind under the Michigan Condominium Act's 9-business-day rescission right. What should the agent advise?
Correct Answer
C) The buyer has no 9-business-day rescission right under the Condominium Act because that right applies only to purchases from developers
The 9-business-day right of rescission under the Michigan Condominium Act (MCL 559.183) applies specifically to purchases of condominium units from developers in new developments. When a buyer purchases a resale condominium unit from a private owner (not a developer), the statutory 9-business-day rescission right does not apply. The buyer may still have the 72-hour rescission right under the Michigan Seller Disclosure Act if the disclosure was delivered after signing, but the condominium-specific rescission period is a developer-sale protection only.
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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.
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