A Michigan seller failed to complete the Seller's Disclosure Statement before or at the time of signing the purchase agreement as required by the Michigan Seller Disclosure Act. The buyer signed the agreement without receiving the disclosure. When the seller later delivers the disclosure, the buyer discovers material defects. What right does the buyer have under MCL 565.951–565.965?
Correct Answer
B) The buyer may rescind the purchase agreement within 72 hours of receiving the disclosure statement
Under the Michigan Seller Disclosure Act (MCL 565.951–565.965), the seller is required to provide the Seller's Disclosure Statement before or at the time of signing the purchase agreement. If the disclosure is delivered late (after signing), the buyer retains the right to rescind the purchase agreement within 72 hours of receiving the disclosure statement. This rescission right exists regardless of when the disclosure was delivered, protecting buyers who signed without having received the required disclosure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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