Final answer:
If the seller in a residential transaction submits an amended disclosure to the buyer, the buyer has right to terminate the contract with return of the buyer’s earnest money.
Step-by-step explanation:
If the seller in a residential transaction submits an amended disclosure to the buyer, the specific period within which the buyer has to terminate the contract with a return of the buyer’s earnest money can vary based on the jurisdiction and the terms of the contract. However, generally, there are provisions that allow the buyer a certain timeframe to review newly disclosed information and make a decision regarding the continuation of the purchase. For example, the clause you mentioned regarding possession indicates that if the owner cannot deliver possession on the agreed date due to specific reasons such as loss, destruction, or the prior residents not vacating, either party can terminate the contract and any paid sums shall be refunded.
In the scenario of amended disclosures unrelated to possession issues, most contracts will provide a timeframe and it often ranges between a few days to a week. It's vital to review the specific terms outlined in the purchase agreement as they will detail the exact timeframe and steps required to terminate the agreement based on amended disclosures, or any other unfulfilled contingencies.