A buyer in Michigan purchases a condominium unit from a developer. The developer provides the Condominium Disclosure Package on a Tuesday. The buyer does not rescind within 9 business days. Two weeks after receiving the package, the buyer discovers that the master deed contains a restriction that significantly limits short-term rental of the unit — a fact the buyer claims was not adequately explained. The buyer now seeks to rescind the purchase agreement. Under Michigan law, which of the following most accurately describes the buyer's legal position?

Correct Answer

C) The buyer has lost the statutory right of rescission under the Michigan Condominium Act because the 9-business-day period has expired without the buyer exercising that right

Under MCL 559.183 of the Michigan Condominium Act, a buyer has 9 business days from receipt of the complete Condominium Disclosure Package to rescind the purchase agreement. The rental restriction in the master deed is part of the Condominium Disclosure Package that the buyer received. Since the buyer did not rescind within 9 business days, the statutory rescission right has expired. The buyer's claim that the restriction was not adequately explained does not revive the rescission right unless the buyer can establish fraud or misrepresentation through separate legal action.