Right of rescission does not apply to which type of property?

Right of rescission does not apply to which type of property?

• A. Home purchases
• B. 2nd Home
• C. Rental
• D. Vacation Homes

Answer: (A)

The main concept here is that the right of rescission under TILA applies only to loans secured by the borrower’s principal dwelling. It does not apply to loans secured by properties that aren’t the borrower’s primary residence. Because of that, non-primary properties—such as a second home, a rental property, or a vacation home—do not carry a rescission right. So, among the options, the types that do not qualify for rescission are the non-primary dwellings: a second home, rental, and vacation home. A purchase of the borrower’s primary residence would fall under the rescission rights, not outside of them. If the answer key lists a primary-home purchase as the one lacking rescission, that would be inconsistent with the rule, but the concept remains clear: rescission does not apply to non-primary properties.

The main concept here is that the right of rescission under TILA applies only to loans secured by the borrower’s principal dwelling. It does not apply to loans secured by properties that aren’t the borrower’s primary residence. Because of that, non-primary properties—such as a second home, a rental property, or a vacation home—do not carry a rescission right.

So, among the options, the types that do not qualify for rescission are the non-primary dwellings: a second home, rental, and vacation home. A purchase of the borrower’s primary residence would fall under the rescission rights, not outside of them. If the answer key lists a primary-home purchase as the one lacking rescission, that would be inconsistent with the rule, but the concept remains clear: rescission does not apply to non-primary properties.