Things Clients Should Know - Buyer's Remorse
It seems like several times a year we get phone calls from distressed clients who have purchased a new car at a dealership a day or two before and want to cancel the transaction for any number of reasons, usually because they have realized that they cannot afford the car. They have "heard" that there is a three day right to cancel the car purchase and they want our help. Unfortunately, we have to advise them that in their case there is no such right in South Carolina.
State and federal laws do give a buyer the right to rescind a purchase that was made at the buyer's home. For example, a traveling salesman knocks on your door and convinces you to buy an expensive encyclopedia set. You have three days (excluding Sundays) after the purchase to notify the encyclopedia company that you want to cancel ("rescind" is the legal term) the deal. So in our car example, if the car salesman came to your home and sold you the car, you would have the legal right to cancel the transaction within the next three business days.
Most clients are familiar with the right of rescission when they refinance their home mortgages with a bank. You have three business days after signing the loan documents to cancel the transaction if you so choose. Please keep in mind that this right only applies to your primary residence and not to residential rental property or commercial property.
By statute, South Carolina gives the purchaser of a vacation time share unit five days after the purchase to cancel the transaction, regardless of whether the sale took place at the office of the seller or at your home.
Take your time when entering into any major financial transaction and make sure that you have examined all aspects of the transaction and made an informed decision. That way you should never have to worry if you can cancel after the fact.
- 1 year ago
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