Utah Code 57-29-305. Voidable agreements
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(1)
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:(8)(a)(i) a tenancy in common; or(8)(a)(ii) a fee estate. See Utah Code 57-29-102(1)(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.(1)(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an agreement in accordance with Subsection (1) is entitled to all the consideration that the purchaser gave under the rescinded agreement.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.