A Michigan real estate agent is advising a buyer about the Michigan Seller Disclosure Act rescission right and the Michigan Condominium Act rescission right. Which of the following statements about these two rescission rights is NOT accurate?
Correct Answer
C) Both the Seller Disclosure Act and the Condominium Act rescission rights apply equally to resale condominiums purchased from individual sellers
The statement that both rescission rights apply equally to resale condominiums purchased from individual sellers is NOT accurate. The Michigan Condominium Act's 9-business-day rescission right under MCL 559.183 applies specifically to new condominium sales from developers, not to resale condominiums sold by individual owners. A resale condominium sold by an individual owner would be subject to the Seller Disclosure Act's 72-hour rescission right, but not the Condominium Act's 9-day developer-specific rescission right.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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