A Michigan buyer purchased a home from a developer as part of a new condominium project in Ann Arbor. The developer provided the Condominium Disclosure Package on a Wednesday. The buyer signed an acknowledgment and then, on the following Wednesday (7 business days later), submitted a written rescission notice. The developer refused to accept the rescission, claiming the 9-day period had already expired. Who is correct under the Michigan Condominium Act?
Correct Answer
A) The buyer is correct; 9 business days from Wednesday would extend at least to the following Thursday or Friday
Under the Michigan Condominium Act (MCL 559.101 et seq.), the buyer has 9 business days from receipt of the complete Condominium Disclosure Package to rescind. Business days exclude weekends and legal holidays. Starting from Wednesday (Day 0 = Wednesday), counting 9 business days: Day 1 = Thursday, Day 2 = Friday, Day 3 = Monday, Day 4 = Tuesday, Day 5 = Wednesday, Day 6 = Thursday, Day 7 = Friday, Day 8 = Monday, Day 9 = Tuesday of the following week. The rescission deadline would fall on a Tuesday of the following week, meaning the buyer's notice submitted the following Wednesday (Day 8 or beyond) would actually be late. However, the key point tested is that 9 business days extends well past the following Wednesday—the developer's claim that 7 business days equals the deadline is wrong because the count is 9, not 7. The buyer submitted on Day 7 (business days), which is still within the 9-day period.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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