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What is 7 days right of Rescission?

Blog by Claire LeLacheur | March 7th, 2011

When you write a presale contract it is a little bit different from a resale contract. In a resale contract, or used real estate, you write your offer with subjects on it, such as subject to financing or subject to a building inspection.

When you write a presale contract (a contract on a unit that is being sold by a developer and is not even built yet) instead of subjects you get 7 days right of rescission. Usually a developer will ask for a check for a percentage of the purchase price.

 There are no subjects on a presale contract. Instead during these 7 days you get an opportunity to get your financing in order, and to read over the developers disclosure statements. Since there is no building to inspect, a building inspection is not necessary.

During these 7 days, if you decide that you do not want to purchase, the developer will return your check, and you will rescind your option to purchase. Or, if you decide to purchase, your check will be cashed and you will have a firm and binding deal.

These 7 days inlcude weekends and holidays and stautory holidays. The only expception applies, is if you write a contract on a Sunday, your rescission date will lie on the following Monday.

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