57-29-305.  Voidable agreements.

(1) 

contract signature

Need help reviewing a real estate contract?
Have it reviewed by a lawyer, get answers to your questions and move forward with confidence.
Connect with a lawyer now

Terms Used In Utah Code 57-29-305

  • Right of rescission: Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan. There is no fee to the borrower, who receives a full refund of all fees paid. The right of rescission is guaranteed by the Truth in Lending Act (TILA). Source: OCC
  • Sponsor: means a person who is the original seller of an undivided fractionalized long-term estate. See Utah Code 57-29-102
  • Undivided fractionalized long-term estate: means an ownership interest in real property by two or more persons that is:
(i) a tenancy in common; or
(ii) a fee estate. See Utah Code 57-29-102
(a)  If a sponsor violates a provision of this chapter in entering into an agreement to purchase an undivided fractionalized long-term estate, the purchaser may rescind the agreement.

(b)  A purchaser may rescind an agreement under this Subsection (1) at any time before the closing.

(2)  A purchaser who rescinds an agreement in accordance with Subsection (1) is entitled to all the consideration that the purchaser gave under the rescinded agreement.

(3)  In an action to enforce a purchaser’s right of rescission under Subsection (1), the court shall award costs and reasonable attorney fees to the prevailing party.

Enacted by Chapter 381, 2016 General Session

  Previous section
Next section  
 Part 3 Contents