Under Georgia law, when does a buyer have the right to rescind a contract?

In Georgia, the right for a buyer to rescind a contract is governed by specific regulations that provide a limited period during which the buyer can cancel the agreement without penalty. The correct answer indicates that this period is within three business days of signing the contract.

This three-day rescission period is typically associated with certain transactions, such as those involving a home equity line of credit or other consumer finance agreements, ensuring that buyers have an opportunity to reconsider their commitments shortly after signing. This protective measure is designed to give buyers a chance to reassess their decisions after having time to think about the terms and conditions they agreed to.

Other options do not align with Georgia law regarding rescission rights. For instance, rescinding the contract immediately after signing does not acknowledge the specified time frame that allows for reconsideration. Rescission after closing doesn't align with the intention of providing a window for buyers to reflect on their decisions, as it is generally understood that a contract becomes fully binding at closing. Lastly, the notion that rescission is only permissible if a significant defect is found does not align with this consumer protection statute, as it encompasses broader circumstances beyond just defects in the property.