Sarah is purchasing a condominium in a Minneapolis building governed by the Minnesota Common Interest Ownership Act (MCIOA). The purchase agreement includes a resale disclosure contingency. The seller provides the required MCIOA resale disclosure documents. Sarah reviews them and discovers the association has a $250,000 special assessment pending for roof replacement, of which her unit's share would be $8,500. Sarah wants to cancel the contract. Under Minn. Stat. Ch. 515B, what is Sarah's right of rescission after receiving the resale disclosure documents?
Correct Answer
A) Sarah has 10 days to rescind the contract after receiving all required MCIOA resale disclosure documents
Under the Minnesota Common Interest Ownership Act (Minn. Stat. Ch. 515B), a buyer of a resale unit in a common interest community has the right to cancel the purchase agreement within 10 days after receiving all required resale disclosure documents from the seller. This rescission right exists regardless of whether the buyer discovered a specific problem—it is an unconditional statutory right. Sarah may exercise this right to cancel based on the pending special assessment.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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