Helen is purchasing a home in Nashville. The seller delivers the Tennessee Residential Property Condition Disclosure form to Helen after the purchase agreement has already been signed by both parties. Helen reviews the form and discovers that the basement has a history of flooding. She wants to rescind the contract. Under the Tennessee Residential Property Condition Disclosure Act, what is the correct procedure and timeframe for Helen to rescind?
Correct Answer
B) Helen must rescind within three business days of receiving the disclosure form by providing written notice to the seller or seller's agent
Under the Tennessee Residential Property Condition Disclosure Act, Tenn. Code Ann. § 66-5-210, when a seller delivers the Property Condition Disclosure form after the contract has been executed, the buyer has three business days from receipt of the disclosure to rescind the contract without penalty. The rescission must be in writing and delivered to the seller or the seller's agent. This is a Tennessee-specific rule that is heavily tested on the state exam.
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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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