Q: Can the 10-day right of rescission related to Common Interest Community property purchases be waived?
The form entitled Addendum to Purchase Agreement: Condominium/ Townhouse/Cooperative Common Interest Community (CIC) is based on Minn. Stat. § 515B.4-108, which allows the purchaser of the property to have up to ten days to review the CIC-related documents and rescind the purchase if the purchaser finds them unsatisfactory. However, this statutory right of rescission may be modified or waived only if it is done in writing after the purchaser has been given the required CICrelated documents. The Minnesota Realtors® form entitled Common Interest Community Modification/ Waiver of Buyer’s Right of Rescission (Residential) is designed to be used in this circumstance. However, keep in mind that a seller cannot condition acceptance of an offer based on the purchaser agreeing to a waiver. Additionally, the waiver document of the purchaser’s 10-day right of rescission must be separate from the purchase agreement and signed by the purchaser more than three days after the purchaser receives the disclosure statement.