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Mandated DisclosuresBuyer_rescission_rights_three_business_daysHARD

A seller in Bellevue deliberately delivers a partially completed Form 17 to the buyer, intentionally omitting known information about a leaking roof. The buyer does not rescind within three business days of receiving the incomplete form and the transaction closes. Six months later, the buyer discovers the roof defect. Which of the following best describes the buyer's legal position under Washington law?

Correct Answer

A) The buyer may pursue claims against the seller because the seller's deliberate omission means a complete Form 17 was never properly delivered, and the rescission clock may not have started.

Under RCW 64.06, the three-business-day rescission clock is triggered by receipt of a completed Form 17. A deliberately incomplete or fraudulent disclosure may not constitute proper delivery of a completed Form 17, meaning the statutory rescission period may never have validly commenced. Furthermore, the seller's intentional omission of a known material defect exposes the seller to claims under the Seller Disclosure Act, common law misrepresentation, and potentially the Washington Consumer Protection Act (RCW 19.86). The buyer's rights are not necessarily extinguished simply because closing occurred.

Answer Options
A
The buyer may pursue claims against the seller because the seller's deliberate omission means a complete Form 17 was never properly delivered, and the rescission clock may not have started.
B
The buyer may rescind the closed transaction within one year by returning the property to the seller under the Seller Disclosure Act.
C
The buyer has no recourse because the three-business-day rescission period has expired and the transaction has closed.
D
The buyer's only remedy is to file a complaint with the Washington State Department of Licensing against the listing broker.

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Related Topics & Key Terms

Key Terms:

seller_disclosureform_17rescission_rightsfraudulent_disclosurematerial_defectbuyer_remediesrcw_64_06rcw_19_86

Related Concepts

A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.

An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.

Asbestos disclosure involves informing buyers about the presence of asbestos-containing materials (ACMs) in a property. Asbestos was commonly used in construction materials before 1980 and poses health risks when fibers become airborne.

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