Question and Answer Regarding Transfer Disclosure Statement

Question and Answer Regarding Transfer Disclosure Statement

Question: I understand that a buyer has an automatic right of rescission after receiving a completed Transfer Disclosure Statement (“TDS”). What happens if the selling agent does not complete their section of the TDS? Can the buyer cancel?

Answer: CAR recently modified the Residential Purchase Agreement to provide that a TDS will be deemed complete upon completion of it by the seller and listing agent. Therefore, contractually, the right of rescission is triggered upon completion by the sellers and listing agent.

-Shannon B. Jones, Partner, sbj@sbj-law.com