Kevin and Diane are under a fully executed purchase agreement to buy a condominium unit in a new development in Ann Arbor. The developer's agent delivers the complete Condominium Disclosure Package to Kevin and Diane on a Monday morning. Four days later, on Thursday afternoon, Kevin and Diane decide they want to back out of the deal. Their agent tells them they may still be within the rescission window. Which of the following statements most accurately describes their right to rescind under Michigan law?
Correct Answer
B) They can rescind because the Michigan Condominium Act grants buyers 9 business days after receiving the Condominium Disclosure Package to cancel without penalty
Under the Michigan Condominium Act (MCL 559.183), a buyer of a condominium unit from a developer has 9 business days after receiving the complete Condominium Disclosure Package to rescind the purchase agreement without penalty. Since the package was delivered on Monday morning and only 4 calendar days (fewer than 9 business days) have passed by Thursday afternoon, Kevin and Diane are still within the rescission window and may cancel the contract.
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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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