A buyer's affiliate broker in Tennessee is advising a client who just received the Property Condition Disclosure form after signing a purchase contract. The client asks whether the rescission right under the Tennessee Residential Property Condition Disclosure Act is the same as the federal three-day right of rescission she heard about. Which response is most accurate?
Correct Answer
B) They are different rights; the federal right applies to certain refinance transactions under TILA, while Tennessee's right applies when the disclosure is delivered after contract execution
The federal three-day right of rescission under the Truth in Lending Act (TILA/Regulation Z) applies to certain refinance transactions secured by a primary residence, not to standard purchase transactions. Tennessee's three-business-day rescission right under Tenn. Code Ann. § 66-5-210 applies specifically when a seller delivers the Property Condition Disclosure form after contract execution in a residential sale. These are entirely separate legal rights triggered by different events in different contexts.
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Related Topics & Key Terms
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