California Real Estate SalespersonPractice of Real Estate and DisclosuresHard
A buyer receives a properly completed Transfer Disclosure Statement (TDS) delivered in person by the seller's agent on March 1. Under California law, the buyer has the right to rescind the purchase agreement based on the TDS if the buyer acts by which deadline?
- AMarch 2, one day after personal delivery
- BMarch 15, fifteen days after personal delivery
- CMarch 4, three days after personal delivery
- DMarch 6, five days after personal delivery
Show answer & explanationAnswer & explanation
Correct answer: C. March 4, three days after personal delivery
California Civil Code gives a buyer 3 days to rescind after personal delivery of the TDS (or 5 days if delivered by mail). Since delivery was in person on March 1, the buyer's right to rescind expires 3 days later, on March 4.
Why the other options are wrong
- A. One day is too short; the statutory period for personal delivery is 3 days.
- B. 15 days is not a recognized rescission period for the TDS.
- D. 5 days applies to delivery by mail, not personal delivery.
TDS Rescission Period
A buyer has 3 days after personal delivery (or 5 days after mailing) of the Transfer Disclosure Statement to rescind the purchase agreement.
- 3 days if delivered in person
- 5 days if delivered by mail
- Rescission right applies only if buyer receives TDS after entering contract
Memory trick: In-person = 3, mail-drop = 5