Final answer:
The carryback disclosure statement is a key financial document in real estate transactions that must be signed by the buyer and seller before the possession of the property takes place. This ensures that all the terms are agreed upon and documented in case the owner fails to deliver possession on the agreed date.
Step-by-step explanation:
The minimum requirement for the carryback disclosure statement is that it must be signed by both the buyer and seller prior to possession. In real estate transactions, this statement might relate to the financial arrangements whereby the seller provides financing to the buyer who pays back the loan amount over time. It is vital that such agreements are fully understood and properly documented before possession of the property changes hands, as outlined by legal agreements regarding the possession and transfer of property.
In the context provided, if the owner cannot deliver possession of the residence on the agreed date, and if neither party opts to cancel the agreement, the agreement shall be prorated and commence from the actual date of possession. Therefore, the carryback disclosure statement, like any other significant agreement relating to the property transaction, should be completed before possession to ensure all parties are aware of their rights and obligations.