What is the deadline for rescission if one co-owner of a property is provided with a Notice of Right to Cancel and the other is not?

The deadline for rescission in the scenario where one co-owner of a property is provided with a Notice of Right to Cancel and the other is not extends to three years after closing. This is due to the protections established under the Truth in Lending Act (TILA) for consumers.

When a transaction involves multiple parties, it is crucial that all parties have the opportunity to be informed of their rights concerning rescission. If one co-owner does not receive the Notice of Right to Cancel, it implicates the validity of the disclosure process. TILA stipulates that the right of rescission may be extended because of improper or incomplete notifications to the affected parties. Therefore, if one co-owner is left uninformed, they are entitled to a longer period, specifically three years, to exercise their right to rescind the loan agreement. This is designed to protect consumers and ensure that they can make informed decisions regarding their financial commitments.