A Tennessee seller of a three-unit residential property provides the Property Condition Disclosure form to the buyer five days after contract execution. The buyer reviews the form, finds no issues, and does nothing during the three-business-day window. On day four after receipt, the buyer's financing falls through and she wants to use the disclosure rescission right to exit the contract penalty-free. Which of the following correctly states the buyer's legal position under Tennessee law?

Correct Answer

C) The buyer may not rescind using the disclosure right because the three-business-day window has already expired, and the right cannot be revived by a subsequent event

Under Tenn. Code Ann. § 66-5-210, the buyer's rescission right triggered by late delivery of the Property Condition Disclosure form must be exercised within three business days of receipt. Once that window expires without the buyer acting, the right is extinguished. The buyer's financing failure on day four is a separate event that does not revive or extend the disclosure-based rescission right. The buyer would need to look to a financing contingency in the contract — if one exists — for relief, not the disclosure rescission right.