Michigan License Law Practice Test

If the Seller's Disclosure Statement is not delivered before a binding purchase agreement is executed, how long does the transferee have to withdraw the offer?

1. 24 hours

2. 48 hours

3. 72 hours

4. 120 hours

The correct answer is: 120 hours

The correct timeframe for the transferee to withdraw the offer if the Seller's Disclosure Statement is not delivered before a binding purchase agreement is executed is 120 hours. This provision is in place to ensure that the purchaser has a reasonable opportunity to review the disclosures related to the property before finalizing the transaction. In Michigan, the Seller's Disclosure Act requires that the seller provide this statement to the purchaser as a means for buyers to make informed decisions regarding their potential purchase. If the disclosure is not provided timely, the law grants the buyer the right to reconsider their offer, allowing them 120 hours from the time the agreement is executed to withdraw their offer. This longer period provides added consumer protection and promotes transparency in real estate transactions, ensuring that buyers can make decisions with all necessary information in hand.