A buyer in Virginia enters into a contract to purchase a new condominium unit directly from the developer. The developer provides the Public Offering Statement (POS) to the buyer on Day 1. On Day 2, the buyer signs a written waiver of the right to rescind. On Day 3, the buyer discovers a material defect in the POS and wants to rescind the contract. Under the Virginia Condominium Act, which of the following is most accurate?
Correct Answer
C) The buyer can rescind because waivers of the statutory rescission right under the Virginia Condominium Act are void and unenforceable
Under the Virginia Condominium Act (Va. Code § 55.1-1900 et seq.), the buyer's 3-calendar-day right of rescission after receiving the Public Offering Statement is a statutory right that cannot be waived in advance. Any purported waiver of this statutory rescission right is void and unenforceable as against public policy. Therefore, even though the buyer signed a waiver on Day 2, that waiver has no legal effect, and the buyer retains the full 3-calendar-day rescission right from Day 1, meaning rescission on Day 3 is still within the valid period and permissible.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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