Definitions for "Right of Rescission"
A period of three days after the closing in which a borrower can cancel an owner-occupied refinance transaction. Loan fundings occur after this period has expired.
The right of a consumer to nullify a contract within three business days of signing it without paying a penalty or down payment. see also rescission.
This a legal right to the borrower after signing the note and all final documents at closing to rescind their action and undo the contract. For refinances this can take place during the following 72 hours omitting Sundays and national holidays. For purchases and investment property refinances the time duration is 24 hours following signing excluding Sundays and national holidays. If this right is omitted or cut short the borrower then holds the right to rescind the contract any time during the next 3 calendar years. If the lender omits a legally required document (such as the Notice of Transfer of Servicing Rights) or does not follow regulations required otherwise (such as failing to correctly disclose the Truth in Lending), the borrower may again be eligible to rescind at any time during the following 3 years.
The right of a purchaser of a new issue to withdraw from the purchase agreement within the specific province's applicable time limits if the prospectus contained an untrue statement or omitted a material fact.
Keywords:  reit, trust, investment, estate, real
Real Estate Investment Trust REIT Real property