Contracts

What is a right of rescission under the Truth in Lending Act (TILA) in Nevada refinance transactions?

AThe right to rescind any real estate contract within 3 days
BThe right of a homeowner to cancel a refinance of their primary residence within 3 business days of signing loan documents✓ Correct
CThe right to rescind only if there is fraud by the lender
DThe right to cancel a purchase contract within 10 days

Explanation

TILA gives homeowners the right to rescind (cancel) a refinance loan secured by their primary residence within 3 business days after closing. This right does not apply to purchase transactions, only refinances and home equity loans on primary residences.

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