Posted By: LostinRegLand
Right of Rescission-Demolishing existing home - 10/25/21 04:44 PM
Situation I haven't seen prior.
Applicants bought a house in December of 2020. They have never lived in the house and had never planned on living in the house. They bought the property with the intention of building a 2nd home on the property and living in the 2nd home. Zoning codes would not allow this so they will be demolishing the existing home to build a new home.
Our legal counsel is asking if we should be providing a Right of Rescission. My first thought was no. It is not currently their primary residence, they have never lived in the home that will be demolished but they bought it with the intentions of the property eventually becoming their primary property after building a new home I am doubting myself and could use some of your expertise.
I have reviewed 1026.23 and have read the commentary. 1026.23(a)(1)-3 and -4. I do understand that normally a construction loan would be a Residential Mortgage Transaction and not rescindable but with legal questioning this makes me think I am not understanding something
Applicants bought a house in December of 2020. They have never lived in the house and had never planned on living in the house. They bought the property with the intention of building a 2nd home on the property and living in the 2nd home. Zoning codes would not allow this so they will be demolishing the existing home to build a new home.
Our legal counsel is asking if we should be providing a Right of Rescission. My first thought was no. It is not currently their primary residence, they have never lived in the home that will be demolished but they bought it with the intentions of the property eventually becoming their primary property after building a new home I am doubting myself and could use some of your expertise.
I have reviewed 1026.23 and have read the commentary. 1026.23(a)(1)-3 and -4. I do understand that normally a construction loan would be a Residential Mortgage Transaction and not rescindable but with legal questioning this makes me think I am not understanding something