A Tennessee seller delivers the Property Condition Disclosure form to the buyer two days after the purchase contract is fully executed. Under the Tennessee Residential Property Condition Disclosure Act, all of the following statements about the buyer's rescission right are true EXCEPT:
Correct Answer
A) The buyer's rescission right is automatically extended if the disclosure reveals a material defect
The statement that the rescission right is automatically extended when the disclosure reveals a material defect is FALSE and therefore the correct answer to this EXCEPT question. The Tennessee Residential Property Condition Disclosure Act provides a fixed three-business-day rescission window after the buyer receives a post-execution disclosure. This period is not extended or modified based on the severity of the disclosed defects. The buyer must act within three business days regardless of what the disclosure reveals.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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