A seller in Nashville is selling a single-family home and provides the buyer with the Tennessee Property Condition Disclosure form two days after the purchase contract is signed. The form reveals the presence of a previously remediated underground storage tank on the property. What right does the buyer have under Tennessee law?
Correct Answer
D) The buyer may rescind the contract within three business days of receiving the disclosure form.
Under Tenn. Code Ann. § 66-5-201 et seq., when a seller delivers the Property Condition Disclosure form after the contract has already been executed, the buyer has three business days from receipt to rescind the contract without penalty. This right is triggered by the late delivery of the disclosure, regardless of whether the disclosed condition has been remediated. The form revealed an environmental hazard (the underground storage tank), and since it was provided post-contract, the three-day rescission window applies.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Mandated Disclosures Question
Background Knowledge for Mandated Disclosures
Real World Application in Mandated Disclosures
Common Mistakes to Avoid on Mandated Disclosures Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
More Mandated Disclosures Questions
Sandra is selling her three-unit residential building in Newark, New Jersey. Her listing agent, Tom, advises her that she must complete a Property Condition Disclosure Statement before accepting any offer. Sandra asks Tom what types of conditions the disclosure statement is required to cover. Which of the following best describes the scope of required disclosures under the New Jersey Residential Property Condition Disclosure Act?
Agent must disclose all EXCEPT:
Karen is selling her single-family home in Sioux Falls. Her listing agent, Tom, hands the completed seller disclosure statement to the buyer's agent during the showing. The buyer, Lisa, reviews and signs the acknowledgment form three days later. Under South Dakota law, which statement best describes whether this process was handled correctly?
ND seller disclosure covers:
Under the Idaho Property Condition Disclosure Act, the Property Condition Disclosure Form requires sellers to disclose information about various aspects of the property. Which of the following is NOT typically a category of information required to be disclosed on the Idaho Property Condition Disclosure Form?
- → An office manager in Carrboro is preparing an exam-prep note on RPOADS timing, scope, and the "No Representation" choice. Which statement best applies under current North Carolina law?
- → A Minnesota seller is completing a Seller's Property Disclosure Statement for a residential property sale. Which of the following items would the seller be required to disclose under Minn. Stat. § 513.55 if the seller has actual knowledge of it? Select the answer that would NOT typically be included as a required disclosure.
- → At a training session in Oak Park, Micah Keller asks what Illinois radon materials a residential seller generally must provide when the Radon Awareness Act applies. Which answer is correct?
- → On a North Carolina exam item about lead-based paint and environmental disclosures, which concept is being defined? Description: The federal buyer opportunity period commonly associated with lead-based paint disclosure in covered pre-1978 housing unless the parties agree otherwise.
- → A Georgia licensee is aware that a previous owner of a listed property died by suicide in the home. The licensee also knows the property has significant foundation damage that has not been repaired. How should the licensee analyze these two disclosure issues under Georgia law?
- → A developer in Jefferson Parish is selling brand-new construction homes that have never been occupied. A buyer's agent asks whether the seller must provide the Louisiana Residential Property Disclosure Document for each unit. Which of the following best describes the seller's obligation?
- → Which of the following transactions is typically exempt from Idaho's seller property condition disclosure requirements under Idaho Code § 55-2506?
- → In Vermont, a client refuses to allow a disclosure the licensee believes is necessary. Which statement is correct?
- → A bank acquires a single-family home through a trustee's sale after the borrower defaults on a deed of trust. The bank lists the property for sale. Under the Missouri Seller Disclosure Act, which of the following statements is correct?
- → A Gastonia broker is training a new associate on Mineral and Oil and Gas disclosure timing, scope, and waiver limits. Which statement best applies under current North Carolina law?