James is purchasing a home in Rochester Hills. He receives the Seller's Disclosure Statement after signing the purchase agreement and discovers that the seller disclosed the presence of lead-based paint in the home, which was built in 1968. James is concerned about both the Michigan Seller Disclosure Act rescission right and any federal disclosure requirements. Which of the following most accurately describes James's rights and the applicable disclosure requirements?
Correct Answer
B) James has a 72-hour right of rescission under the Michigan Seller Disclosure Act and is also entitled to a lead-based paint disclosure under federal law, as the home was built before 1978
Two separate disclosure frameworks apply here. Under the Michigan Seller Disclosure Act (MCL 565.957), James has a 72-hour right of rescission upon receiving the disclosure after signing the purchase agreement. Separately, federal law (42 U.S.C. § 4852d) requires sellers of pre-1978 housing to provide a lead-based paint disclosure and give buyers a 10-day opportunity to conduct a lead-based paint inspection. Both rights exist concurrently and are not mutually exclusive.
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Related Topics & Key Terms
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Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
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