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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
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