A buyer named Kevin is purchasing a rural property in northern Michigan that includes a wetland area regulated under Part 303 of the Michigan Natural Resources and Environmental Protection Act (NREPA). The seller disclosed the wetland designation on the Seller's Disclosure Statement, and Kevin signed the purchase agreement. Three days later, Kevin decides he wants to rescind the agreement because he is concerned about building restrictions on the wetland. Under the Michigan Seller Disclosure Act, what is Kevin's right of rescission at this point?

Correct Answer

A) Kevin may no longer rescind under the Seller Disclosure Act because the 72-hour rescission period runs from receipt of the disclosure, not from signing the purchase agreement.

Under the Michigan Seller Disclosure Act (MCL 565.957), the buyer's 72-hour right of rescission is triggered upon receipt of the Seller's Disclosure Statement, not upon signing the purchase agreement. In this scenario, the disclosure was delivered before the purchase agreement was signed. Kevin signed the agreement after receiving the disclosure, which means his 72-hour window started when he received the disclosure—well before the three days described. By the time Kevin decides to rescind three days after signing, the 72-hour period has already expired.