David is selling his duplex in Ann Arbor. Before the purchase agreement is signed, he hands the completed Seller's Disclosure Statement directly to the buyer at an open house. The buyer reviews it and signs the purchase agreement the next day. Which of the following statements correctly describes the buyer's rescission rights under the Michigan Seller Disclosure Act?

Correct Answer

D) The buyer has no right of rescission because the disclosure was provided before the purchase agreement was signed

Under MCL 565.957, the buyer's right to rescind within 72 hours is triggered only when the Seller's Disclosure Statement is received after the purchase agreement is signed. If the seller provides the disclosure statement before the purchase agreement is executed, the buyer has already had the opportunity to review it and no separate rescission right is created. The buyer's acknowledgment of receipt before signing waives the post-signing rescission right.