Contracts

In Idaho, what is a 'right of rescission' in the context of consumer credit transactions?

AThe right to demand a refund on any real estate purchase
BThe right of a borrower to cancel certain credit transactions (refinances, HELOCs) within 3 business days under TILA✓ Correct
CThe seller's right to cancel if the appraisal is too low
DThe buyer's right to back out of any purchase

Explanation

TILA provides a 3-business-day right of rescission for certain non-purchase refinance loans and home equity loans secured by the borrower's primary residence. It does not apply to purchase money mortgages.

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