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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: right of rescission Posted by Gary -Ca on August 12, 2001 at 11:06 PM In Reply to: Re: right of rescission posted by Ward-CA- on August 11, 2001 at 8:48 AM : : Ward, : : For investors buying property before the Trustee Sale, is there : : such a thing as the seller's right of rescission? If so, how long is it and can a seller still exercise this when a properly written Equity Purchase Agreement was involved? : : Regards : : Gary : =•=•=•=•=•=•=•=•=•=•=•=•= : Gary, yes there’s a special seller’s right of rescission that is mandated by CA’s Civil Code Section 1695 (see link below). It applies when an owner-occupied home is in foreclosure and the buyer is an investor-speculator who has no intention using the property for her home. : The rescission right runs for five days after signing the equity purchase contract, which according to the Code, has to contain the notice of the right to rescind. In addition, the buyer has to provide the seller with a Notice of Cancellation form to use if the seller decides to rescind within the 5 days. Ward, What I was thinking of was the rescission after escrow closed on the purchase of a pre-foreclosure...something that extended two years or so. I did find it under the Foreclosure Code link you provided in California Civil Code 1695.14. Have you ever seen this occur to a buyer where a seller within the two years rescinds the Equity Purchase (EP) transaction? Also, I've learned (though I'm not sure correctly) that some title companies will insist a seller sign an estoppel affidavit during the EP agreement. Is this true and does this indeed add extra insurance against a seller exercising this rescission with the following two years? Regards Gary Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : Ward, : : : For investors buying property before the Trustee Sale, is there : : : such a thing as the seller's right of rescission? If so, how long is it and can a seller still exercise this when a properly written Equity Purchase Agreement was involved? : : : Regards : : : Gary : : =•=•=•=•=•=•=•=•=•=•=•=•= : : Gary, yes there’s a special seller’s right of rescission that is mandated by CA’s Civil Code Section 1695 (see link below). It applies when an owner-occupied home is in foreclosure and the buyer is an investor-speculator who has no intention using the property for her home. : : The rescission right runs for five days after signing the equity purchase contract, which according to the Code, has to contain the notice of the right to rescind. In addition, the buyer has to provide the seller with a Notice of Cancellation form to use if the seller decides to rescind within the 5 days. : : Ward, : What I was thinking of was the rescission after escrow closed on the : purchase of a pre-foreclosure...something that extended two years : or so. I did find it under the Foreclosure Code link you provided in : California Civil Code 1695.14. Have you ever seen this occur to a : buyer where a seller within the two years rescinds the Equity Purchase : (EP) transaction? Also, I've learned (though I'm not sure correctly) : that some title companies will insist a seller sign an estoppel : affidavit during the EP agreement. Is this true and does this indeed : add extra insurance against a seller exercising this rescission with : the following two years? : Regards : Gary Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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