Carlos is under contract to purchase a four-bedroom home in Hattiesburg, Mississippi. After signing the purchase agreement, he receives the seller's property condition disclosure statement and discovers that the basement has a history of flooding that was not mentioned during showings. Carlos wants to withdraw from the contract without penalty. Under the Mississippi Seller Disclosure Act, what is Carlos's most likely remedy if the disclosure was provided after the purchase agreement was signed?
Correct Answer
A) Carlos may rescind the purchase agreement, because the disclosure was not timely provided before or at contract execution as required by Mississippi law
Under Miss. Code Ann. §89-1-503 and §89-1-509, the seller is required to deliver the property condition disclosure statement at or before the time the purchase agreement is entered into. If the disclosure is delivered after contract execution, the buyer is entitled to rescind the purchase agreement within a specified period after receipt of the disclosure. Because the disclosure was untimely, Carlos has the statutory right to rescind the contract without penalty, making Option A correct.
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Related Topics & Key Terms
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Related Concepts
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
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