Question

Buyer B makes an offer to purchase Seller A's home. The offer is accepted, but A has not provided B with a Real Property Disclosure Report. After demanding the Report, B is provided with one six days later. B can:

a) rescind the transaction, as the report wasn't received before the offer was accepted.
b) rescind the transaction within three business days if the report shows a material defect.
c) not rescind if the report is received before closing.
d) not rescind if the seller agrees to fix all defects.

Answer 1

Buyer B can rescind the transaction if the report was not received before the offer was accepted. The buyer can also rescind within three business days if the report shows a material defect. Otherwise, if the report is received before closing or the seller agrees to fix defects, the buyer cannot rescind.

Step-by-step explanation:

In this situation, Buyer B can exercise the option to rescind the transaction entirely if the Real Property Disclosure Report was not received before the offer was accepted. Option (a) is the correct choice. This is because the buyer has the right to review the report and make an informed decision about the purchase before committing to the transaction. If the report shows a material defect, Option (b) is applicable, allowing the buyer to rescind the transaction within three business days if they choose to. However, if the report is received before closing, Option (c) applies, and the buyer cannot rescind the transaction solely based on the receipt of the report. Additionally, if the seller agrees to fix all defects, Option (d) applies, and the buyer cannot rescind the transaction.