California Real Estate Broker ExaminationReal Estate PracticeMedium
A buyer is interested in a property located in a designated Natural Hazard Disclosure (NHD) zone. The seller's agent provides the buyer with a completed NHD statement, which includes information about seismic hazards, flood zones, and fire risk. Which of the following is true regarding the buyer's right to rescind the purchase agreement after receiving this disclosure?
- AThe buyer has 7 days to rescind the agreement regardless of delivery method.
- BThe buyer has 5 days to rescind the agreement if the disclosure is delivered by mail.
- CThe buyer has no right to rescind based solely on the NHD if it was provided before the offer was accepted.
- DThe buyer has 3 days to rescind the agreement if the disclosure is delivered in person.
Show answer & explanationAnswer & explanation
Correct answer: D. The buyer has 3 days to rescind the agreement if the disclosure is delivered in person.
California law grants buyers specific rescission rights after receiving the Natural Hazard Disclosure statement. If delivered in person, the buyer has 3 days; if by mail, they have 5 days. Since the question specifies in-person delivery, 3 days is the correct period.
Why the other options are wrong
- A. This is incorrect. The rescission period depends on the method of delivery.
- B. This is incorrect. 5 days applies if the disclosure is delivered by mail, not 3 days.
- C. This is incorrect. Buyers always have a right to rescind within the statutory period after receiving the NHD, regardless of when it was provided relative to the offer acceptance, as long as it's after the offer is made.
NHD Rescission Rights
California law grants buyers a specific period to rescind a purchase agreement after receiving a Natural Hazard Disclosure (NHD) statement, depending on the delivery method.
- 3 days to rescind if NHD delivered in person.
- 5 days to rescind if NHD delivered by mail.
- Right to rescind starts after receipt of the NHD, not offer acceptance.
- Applies even if the NHD is provided before offer acceptance.
Memory trick: Hazard disclosure comes, time to decide, 3 for hand, 5 for mail, then you're tied.