Right of Rescission?

Question

Hello BP Community,

It is my understanding that in California, homeowners are allowed a right of rescission period of 5 days before any contract that they enter into is made binding. As someone who is starting out focusing mainly on assignments, is the homeowner's right of rescission applicable to me or to the end buyer? Also, would I inform the homeowners of this right verbally or have them sign a statement saying that they understand their right? How would such a statement look?
I understand that is a specific question but any input is well appreciated. Thanks for your time.

Eric Hairston · Answer

Thank you, that explains it to me.

Bill Gulley · Answer

Really, if state statute requires a right of recission period it's a matter of law and does not need to be written out in a contract unless it is required to be disclosed. Generally, no disclosure is required for state laws to be mentioned, since it's a requirement. Otherwise, your contract would look much like a legal library with all kinds of requirements set by law. You simply follow the law and you don't have anything in your contract that violates any requirement.

Simply stating jurisdiction of the contract, that it shall be governed by the laws of the state of kali, will do. It's up to your buyer to know what those laws are too. Telling them gives them 5 days to have nightmares, I would assume they knew.

Set your closing off with sufficient time to provide for statutory requirements.