Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 1 - Banking, Securities, Small Loans and Corporations › Chapter 20 - Land Sales › Article 4 - Protection of Purchasers › 3 AAC 20.270 - Right to rescind

Current through May 31, 2024
(a) A contract or agreement for the
				  disposition of a lot, parcel, unit or interest in a subdivision covered by the
				  Act, where the property report has not been given to the purchaser in advance
				  of the time of his signing, is voidable at the discretion of the purchaser. In
				  addition, the purchaser has an unconditional right to rescind any contract,
				  agreement or other evidence of indebtedness between the purchaser and the
				  developer, or revoke any offer within five days from the date the purchaser
				  actually receives a legible copy of the signed contract, agreement or other
				  evidence of indebtedness or offer, and the property report as provided in the
				  Act and this chapter. Predating a document does not defeat the time in which
				  the right to rescind may be exercised. The burden of proof that the document
				  was not predated is upon the developer. An act of the developer in assigning or
				  pledging a contract or agreement may not waive the purchaser's right to void or
				  rescind the contract or agreement as provided by this section. Each contract or
				  agreement shall be prominently labeled and captioned that it is a document
				  taken in connection with a sale or other disposition of lands under the
				  Act.
(b) Each contract or agreement
				  for the disposition of a lot, parcel, unit, or interest in a subdivision shall
				  prominently contain upon its face the following notice, printed in type larger
				  than the body of the document, stating:
YOU ARE ENTITLED TO CANCEL THIS AGREEMENT AT ANY TIME IF
					 YOU HAVE NOT RECEIVED THE PROPERTY REPORT IN ADVANCE OF YOUR SIGNING OF THIS
					 AGREEMENT. IN ADDITION, YOU ARE ENTITLED TO CANCEL THIS AGREEMENT FOR ANY
					 REASON WITHIN 5 DAYS FROM THE DAY YOU ACTUALLY RECEIVE A LEGIBLE SIGNED COPY OF
					 THIS DOCUMENT.
The contract or agreement shall contain sufficient space
					 upon its face in immediate conjunction with the notice for the signature of
					 each person obligated under the instrument, acknowledging that the person has
					 read the notice. A third party who is unrelated to the developer may, in
					 connection with the purchase of, or the making of a loan secured by the
					 contracts or agreements, rely on a document furnished by the developer, and
					 signed by a purchaser acknowledging receipt of a property report in advance of
					 signing a contract or agreement.
(c) Rescission occurs when the purchaser
				  gives written notice to the developer at the address stated in the contract or
				  agreement. Notice of rescission if given by mail is effective when it is
				  deposited in a mailbox, properly addressed, and postage prepaid. A notice of
				  rescission given by the purchaser need not take a particular form and is
				  sufficient if it indicates by any form of written expression the intention of
				  the purchaser not to be bound by the contract or agreement.
(d) An act of a purchaser may not waive the
				  right to rescind as provided in this section. However, the right of rescission
				  for failure to receive a "property report" or "notice to purchaser" terminates
				  three years after the date the purchaser signs the contract or
				  agreement.
Authority:
AS
						34.55.020