Patricia signs a contract to purchase a home in Franklin, Tennessee. The contract includes a property condition disclosure contingency. The seller delivers the Tennessee Residential Property Condition Disclosure form to Patricia two days after the contract is executed. Patricia reviews the disclosure and discovers the roof has a known leak. She wishes to rescind the contract. Under Tenn. Code Ann. § 66-5-201 et seq., how many business days does Patricia have to rescind after receiving the disclosure?
Correct Answer
D) Three business days from receipt of the disclosure form
Under the Tennessee Residential Property Condition Disclosure Act, Tenn. Code Ann. § 66-5-201 et seq., when a seller delivers the mandatory Property Condition Disclosure form after the contract has been executed (rather than before), the buyer has three business days from receipt of the disclosure to rescind the contract without penalty. Because the disclosure was delivered two days after contract execution in this scenario, Patricia's three-day rescission right is triggered.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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