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Right To Rescind When Seller Fails To Provide Disclosure Statement

03.30.10
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Authored by:  Alan Middleton

The buyer of a residence has an absolute right to rescind prior to closing if the seller fails to provide the disclosure statement mandated by RCW 64.06.020. That is the holding in Almanza v. Bowen, a recent Division I case. There, a buyer rescinded because the buyer's prior home had not sold. It was undisputed that the seller had not provided a disclosure statement. The Court rejected the seller's argument that the buyer could not rescind because the rescission had nothing to do with the condition of the residence and the failure to provide the disclosure statement. Although the statute does permit a buyer to waive the right to a disclosure statement, the Court held on the facts presented that no waiver occurred. The case can be found here.

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