A Michigan buyer, Olivia, is purchasing a new condominium unit from a developer. She signs a purchase agreement on Monday and receives the complete Condominium Disclosure Package from the developer that same day. On Friday of the same week, she also receives the Seller's Disclosure Statement. On the following Tuesday, Olivia decides she wants to cancel. Which rescission right(s) does Olivia still have available to her on that Tuesday?
Correct Answer
D) Only the Condominium Act 9-business-day right, because the Seller Disclosure Act 72-hour period has expired but the condominium period is still running
The Seller Disclosure Act (MCL 565.957) gives Olivia 72 hours from receipt of the Seller's Disclosure Statement to rescind. She received it on Friday; 72 hours later is Monday. By Tuesday, the 72-hour SDA period has expired. However, under the Michigan Condominium Act (MCL 559.183), Olivia has 9 business days from Monday (when she received the Condominium Disclosure Package) to rescind. Counting business days: Monday (day 1), Tuesday (2), Wednesday (3), Thursday (4), Friday (5), the following Monday (6), Tuesday (7), Wednesday (8), Thursday (9). The 9th business day falls on the Thursday of the following week. Therefore, on the following Tuesday (business day 7), Olivia's Condominium Act rescission right is still active.
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The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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