Contracts

The right of rescission under the Truth-in-Lending Act (Regulation Z) allows a borrower to cancel:

AAny real estate purchase contract within 3 days
BA refinance or home equity loan on their primary residence within 3 business days of closing✓ Correct
CA purchase money first mortgage within 30 days
DAny mortgage within 7 calendar days

Explanation

Regulation Z grants a 3-business-day right of rescission for refinances and home equity loans secured by the borrower's primary residence. It does NOT apply to purchase money first mortgages.

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