Contracts

Rescission of an Iowa real estate contract means:

AOne party amends the contract terms
BThe contract is cancelled and both parties are returned to their original positions✓ Correct
CThe buyer accepts the property as-is
DThe seller reduces the price by mutual agreement

Explanation

Rescission cancels the contract and returns both parties to their pre-contract positions. Earnest money is returned to the buyer, and neither party has further obligations under the agreement.

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