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.
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