Buyer Hector signed a purchase agreement for a Minnesota condominium governed by the Minnesota Common Interest Ownership Act (MCIOA), Minn. Stat. Ch. 515B. The seller provided the required MCIOA resale disclosure documents. Hector reviewed the documents and discovered that the homeowners association had a pending special assessment of $12,000 per unit for roof replacement. Hector wants to cancel the contract based on this information. Under MCIOA, what right does Hector have?
Correct Answer
A) Hector may cancel the purchase agreement within the statutory rescission period after receiving all required MCIOA resale disclosure documents
Under the Minnesota Common Interest Ownership Act (MCIOA), Minn. Stat. Ch. 515B, a buyer of a resale unit in a common interest community has the right to cancel the purchase agreement within a statutory rescission period (typically 10 days) after receiving all required resale disclosure documents from the seller. This right exists regardless of the content of the documents — the buyer may cancel for any reason during this period. The pending special assessment is a material piece of information that the buyer is entitled to review before being bound.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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