A Michigan buyer received the Seller's Disclosure Statement for a residential property on a Monday morning. The buyer reviewed the disclosure and discovered significant issues that were not previously disclosed. Under the Michigan Seller Disclosure Act, by what time must the buyer exercise the right to rescind the purchase agreement?
Correct Answer
C) Within 72 hours of receiving the disclosure statement
Under the Michigan Seller Disclosure Act (MCL 565.951–565.965), a buyer who receives the Seller's Disclosure Statement has 72 hours from the time of receipt to rescind the purchase agreement. This right of rescission is triggered by receipt of the disclosure statement and must be exercised within that 72-hour window. The buyer's rescission right is a key protection under Michigan law.
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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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