Rachel is under contract to purchase a home in Hilton Head, South Carolina. The seller delivers the Property Condition Disclosure Statement to Rachel three days after the purchase contract was signed. The disclosure reveals a known plumbing defect that Rachel considers material. Rachel wants to terminate the contract without penalty based on the late disclosure. Under the SC Residential Property Condition Disclosure Act, what right does Rachel most likely have?
Correct Answer
A) Rachel may terminate the contract within a reasonable time after receiving the disclosure because it was delivered after contract signing
Under S.C. Code Ann. § 27-50-40, if the Property Condition Disclosure Statement is delivered to the buyer after the contract is signed, the buyer has the right to terminate the contract within a prescribed period after receiving the disclosure. The purpose of this provision is to ensure buyers have a meaningful opportunity to review the disclosure before becoming irrevocably bound. Because Rachel received the disclosure after signing the contract and it revealed a material defect she considers significant, she has the right to terminate within the statutory timeframe without penalty.
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