A buyer in Memphis enters into a contract to purchase a residential duplex. The seller provides the Tennessee Property Condition Disclosure form before the contract is signed, and the form discloses that a neighboring property has a known history of soil contamination from an industrial spill. Three days after signing the contract, the buyer has second thoughts about the contamination and wants to rescind. Which statement accurately describes the buyer's legal position under Tennessee law?

Correct Answer

D) The buyer has no statutory right to rescind under the Property Condition Disclosure Act because the disclosure was provided before the contract was signed.

Under Tenn. Code Ann. § 66-5-201 et seq., the three-business-day rescission right is triggered only when the seller delivers the Property Condition Disclosure form after the contract has been executed. In this scenario, the disclosure was provided before the contract was signed, which is the preferred and proper timing. Because the buyer had full knowledge of the disclosed contamination before entering into the contract, no statutory rescission right under the Disclosure Act is available. The buyer is bound by the contract.