Seven Day Right of Rescission Language Must be Included in the Contract Selling Vacant Lot in a Subdivision
The agent is listing certain unimproved lots for sale in a subdivision. The developer/seller standard contract does not contain the rescission language set forth in lines 20-26 of the Arizona REALTORS® Vacant Land/Lot Purchase Contract Addendum Regarding Subdivided or Un-subdivided Lands.
Is the rescission language required by law?
If the property being sold is undeveloped (in other words a vacant lot) in an existing subdivision, the rescission language is required by statute, specifically A.R.S.§32-2185.01(D). The Commissioner’s Rules clarify the required language. See A.A.C. R4-28-804(A). The Rule states that a contract for the purchase or lease of an unimproved subdivided lot shall contain language substantially similar to:
The purchaser or lessee has the legal right to rescind (cancel) this agreement without cause or reason of any kind, and to the return of any money or other consideration by sending or delivering a written notice of rescission to the seller or lessor by midnight of the seventh calendar day following the day the purchaser or lessee executed the agreement. If the purchaser or lessee does not inspect the lot or parcel before the execution of the agreement, the purchaser or lessee shall have six months to inspect the lot or parcel and at the time of the inspection shall have the right to unilaterally rescind the agreement.
See A.A.C R4 -28-804(A).
The language must be in bold print or print larger than the other print used in the contract document. Id.