Lisa is a buyer in Washington who exercised her right to rescind a purchase agreement within three business days of receiving Form 17. She rescinded in writing and sent the notice to the seller's broker. What is the legal consequence of a valid rescission under RCW Chapter 64.06?
Correct Answer
A) Lisa is entitled to a full refund of any earnest money deposit she has paid
Under RCW 64.06.013, when a buyer validly exercises the statutory right of rescission within three business days of receiving Form 17, the purchase and sale agreement is rescinded and the buyer is entitled to a full refund of any earnest money deposit. The rescission is without penalty — the buyer does not forfeit any funds or owe any fees for exercising this statutory right.
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Related Topics & Key Terms
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Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
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