A buyer in Pontiac receives the Seller's Disclosure Statement two days after signing the purchase agreement. The disclosure reveals no issues. Four days later, the buyer's home inspector discovers significant mold in the attic not mentioned in the disclosure. The buyer wants to rescind. The 72-hour Seller Disclosure Act rescission window has already passed. Which of the following best describes the buyer's options?
Correct Answer
B) The buyer may rescind under the inspection contingency if one was included in the purchase agreement and the deadline has not passed
Once the 72-hour Seller Disclosure Act rescission window has passed, the buyer cannot use that statutory right to rescind. However, if the purchase agreement includes an inspection contingency with a deadline that has not yet expired, the buyer may use the inspection contingency to void the contract based on the mold discovery. Contingencies in the purchase agreement are independent contractual rights separate from the statutory disclosure rescission right. The buyer should act promptly to exercise the inspection contingency before its deadline.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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