Tom is selling his four-unit residential building in Nashville. He provides the Property Condition Disclosure form to the buyer before the purchase contract is signed. After reviewing the form, the buyer signs the contract. Three days later, the buyer calls Tom's agent and says he wants to rescind the contract because he changed his mind. Which of the following is correct under Tennessee law?
Correct Answer
D) The buyer may not rescind based on the disclosure rescission right because the form was delivered before contract execution
Under Tenn. Code Ann. § 66-5-210, the three-business-day rescission right is triggered only when the Property Condition Disclosure form is delivered after the contract is executed. Because Tom provided the disclosure form before the contract was signed, no statutory rescission right under the disclosure act was triggered. The buyer signed the contract with full knowledge of the disclosure's contents.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
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