A Tennessee buyer, Greg, is purchasing a home and the seller provides the Property Condition Disclosure form on the same day the purchase contract is signed. The disclosure reveals a history of roof leaks. Greg signs the contract without objection and then attempts to rescind three days later, citing the Tennessee Residential Property Condition Disclosure Act. Is Greg's rescission valid?
Correct Answer
C) No, because the three-day rescission right is only triggered when the disclosure is provided after the contract is executed, not when provided simultaneously with contract signing
Under the Tennessee Residential Property Condition Disclosure Act, Tenn. Code Ann. § 66-5-201 et seq., the three-day rescission right is specifically triggered when the seller provides the disclosure form after the purchase contract has been executed. When the disclosure is provided simultaneously with contract signing — or before signing — the buyer has the opportunity to review the disclosure before committing, and no post-signing rescission right is triggered. Greg received the disclosure at the time of signing, so the statutory rescission right does not apply.
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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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