Contracts

A buyer's right of rescission (right to cancel) under TILA (Regulation Z) applies to:

AAll residential purchase transactions
BRefinance transactions on a borrower's primary residence (not purchase money mortgages)✓ Correct
CAll mortgage transactions including purchases
DOnly investment property purchases

Explanation

The TILA 3-day right of rescission applies to refinance loans secured by the borrower's principal residence. It does NOT apply to purchase money loans. The borrower can cancel the loan within 3 business days of receiving the required disclosures.

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