A buyer in Tacoma signs a Purchase and Sale Agreement to purchase a condominium unit for $380,000. The seller provides a public offering statement the following day. The buyer reviews the statement and decides to back out. Under the Washington Condominium Act (RCW 64.34), how many business days does the buyer have to rescind, and what happens to the earnest money?
Correct Answer
C) Five business days to rescind; earnest money is returned in full to the buyer
Under RCW 64.34.410, a purchaser of a condominium unit has five business days after receiving the public offering statement to rescind the purchase agreement. If the buyer properly exercises this right of rescission within the five-business-day period, all deposits and earnest money must be returned in full to the buyer — no penalties or forfeitures apply. This five-day period is distinct from the three-day rescission period for the Seller Disclosure Statement (Form 17) under RCW 64.06.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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